Digital Ltd Company who is an importer of shoes have design two different business plans to add as an alternative in their basic business model. According to the results from the analysis of initial business plan and the two options, I would recommend the option 1 to choose as an alternative business model to Digital Ltd Company’s management team.
The analysis shows that in option 1 the fixed cost is lower compare to the option 2 and also the basic business model. But, (Gutierrez and Dalsted, 2012) have been stated that ‘fixed costs are not directly linked in the production level’. Similarly in this analysis the manager’s basic salary has been reduced as it comes under the fixed cost and it does not causing changes in the
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In every table I have did four categories of analysis. Those are defining factors, statement of comprehensive income, summary and a graphical form of summary. I designed it like this in order to make the analysis data to looks more clear as it is separated accordingly. It also would be easier for the user to analyze the spreadsheet as I differentiate it by using table format. I also used frames and different colours in each categories of analysis such as pink colour for the statement of comprehensive income, green colour for the factors and also blue colour for the summary. This helps to grab the attention of the user and it also shows the variety more significantly. In addition, I also used the same colours in every table to make the spreadsheet more attractive and to show similarity of the categories as I mentioned above. Besides that, I used the pie chart to show the analysis summary in graphical form. This is because the pie chart can show the differences of the results more clearly compare to the other types of graphical form such as bar graph, line graph and other types of graph. It also looks very simple and easier to understand the results of the analysis. Although I designed my spreadsheet in a very simple way, I feel it is the most suitable graphical form of result for use in a report to the company’s management team as I simplified the results. In