Tuesday
September 16, 2014

Homework Help: business

Posted by bola on Monday, January 11, 2010 at 4:00am.

Adet Limited is a UK company specialised in commercial corporate dressing (trendy uniforms)
For employees in sales, presentation, reception, fairs etc. They have 50 employees and are
Operating 100% in the domestic market. The company designs the clothes but have the finished
Items imported from its affiliate in a low-waged country. At this moment the company takes the
Body-measurements of clients by hand measuring, 5 persons per hour with 2 employees.
The General Director of Ocean Ltd. has been in contact with a company that develops hi-tech
Body-scan machines and was offered a new invention based on ultra-sonic sensor technology. The
New body-scan machine has the following features:

• Mobility.
• 60 persons per hour throughput.
• Persons to be scanned CHD still wear trousers and shirts.
• Handling of the body—scans by one operator.
• The time of implementation is estimated at 6 months.
• Total costs involved will be approximately £ 150,000.

Other relevant information:

• Man—hour cost: operator £ 60 per hour, other employees £ 40 per hour each.
• Average total cost of one outfit will be £ 400 with a gross profit margin of 40% of sales
Value.
• Sales are 2,000 outfits per month now, and are expected to grow to 5,000 outfits per month
Next year due to the implementation of this project.

Requirements
I. Present the organisation of the project management team and the relevant tools to
Demonstrate the project planning.
2. Review management information systems and suggest appropriate information processing
Tools for the operational, tactical, and strategic levels of an organisation.
3. Identify which information system your team is operating in and validate your answer
4. Collect secondary economic data from media such as newspapers, magazines, TV, journals,
etc., for the purpose of sales forecast.
5. Describe the process of such secondary data collection.
6. Justify your methodology in terms of`: sources, relevancy, appropriateness, reliability.
7. Ocean Ltd.’s intelligence has collected information about the return on investment of one
Competitor who adopted a similar machine (but much less advanced than the machine of our
Interest) 2 years ago, as follows:
ROI ROI
Month (%) Month (%)
1 2.36 13 3.46
2 5.73 14 2.64
3 6.6 15 3.63
4 10.05 16 3.44
5 5.13 17 9.49
5 1 .88 18 4.9
7 2.52 19 7.45
8 2 20 20.23
9 4.69 21 3.91
10 1.91 22 1.7
1 1 6.75 23 15.29
12 3.92 24 5.52
25 1.44

Calculate representative values: Mean, Median, Mode, and Quartile; and draw conclusions about
The distribution of the sample.
8. Calculate the variance and standard deviation; and draw some statistical conclusions about
The dispersion of this data sample.
9. Use histogram to illustrate your findings.
10. Have any of your findings in requirement 8 got any implications that might be useful for our
Project evaluation.
11. Based on the numerical data provided and the secondary data collected, make sales forecast
For the coming 5 years and present it graphically.
12. Forecast the relation between the sales and marketing expenditure for the coming 5 years with
Sound validation, and use the appropriate technique to present it pictorially.
13. Calculate the correlation between sales and marketing expenditure based on your forecast in
Requirement l2.
14. Prepare a forecasted profit & lost account for the next 5 years, taking into account all
Potential operating costs; make relevant assumptions where necessary and justify them.
15. Assuming that the Net Profits from your forecast in requirement 14 are streams of cash-flow
Generated by this project and the machine’s life spans 5 years with no residual value; evaluate
The viability of this project by using a variety of financial tools (assuming required rate of
Return to be 8% per annum).
16. Compare the results generated by the financial tools in requirement 15, select the one that you
Think is most applicable for the valuation of this project and defend your choice.
17. Review and evaluate inventory control systems in an organisation.
18. Prepare a spread sheet to enable material planning for the manufacturing affiliate and
Calculate economic order quantities given the following information
• Each outfit requires 2 units of raw material
• Ordering cost and set-up cost: £ 5,000 per month
• Cost of holding each unit: £ 0.30 per month
19. Evaluate the project in sense of merits and limitations.
20. Prepare a formal business report including all the work that you have done.
21. Present this project orally to the General Director of the company (the lecturer) to persuade
Him to invest in this project or to recommend him against this project.

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