Business Analysis of Peak Garage Doors Inc Essay example -- Business

Business Analysis of aggrandizement service department Doors Inc INTRODUCTIONPeak garage Door Inc. has set a death to increase their sales for 2004. Garage door industriousness is expecting a growth of 2.4% while the management of Peak is looking to increase companys sales 26.4%. The company before long has 50 exclusive dealers and 300 non-exclusive dealers. Management has three proposals in scarecrow of them. The first suggestion is to increase the number dealers in their existing markets. The fleck recommendation is to develop an exclusive certify agreement with existing non-exclusive dealers. The one-third recommendation is to decrease the number of dealers and focus companys resources on increasing supp ort for the existing dealers. Of course there is an option for them to ensue everything as it is. My suggestion is to go with the second recommendation due to the feature that exclusive dealers produced 70% of companys sales and non-exclusive dealers contributed only 30%. In order for Peak Garage Doors Inc. to kitchen stove their sales goal for 04 they will have to gain more exclusive dealers since they contribute very much more profit to the company. THE INDUSTRYThe residential garage door industry sales for 2003 were $2 billion 90% ($1.8 billion) of these sales were steel doors, the pillowcase of door the Peak specializes in. Projected industry sales for 04 were $2.05 billion, representing 2... ... clear gross sales$8,452,518.40Cost of Goods exchange$6,900,000.00Gross Profit$1,552,518.40 Selling, General and Admin Expense$1,600,000.00Net Profits in front Taxes -$47,481.60Choosing option 3 would lead to a loss. survival of the fittest four is to do nothing. This would mean that everything would stay the same, and Peak could expect a 2.4% increase in sales.INCOME STATEMENT 2004 Net Sales$9,420,800.00Cost of Goods Sold$6,900,000.00Gross Profit$2,520,800.00 Selling, General and Admin Expense$1,840,000.00Net Profits Before Taxes$680,800.00CONCLUSIONAccording to the calculations, it will be impossible for the company to reach the sales goal of 12.5 million regardless of which option they choose. However the shell outcome is with the option number two which is to develop an exclusive franchise agreement with existing non-exclusive dealers.