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

duty Analysis of Peak Garage aditways Inc INTRODUCTIONPeak Garage Door Inc. has set a goal to extend their gross revenue for 2004. Garage accession industry is expecting a growth of 2.4% while the management of Peak is feeling to increase companys sales 26.4%. The company currently has 50 scoop dealers and 300 non-exclusive dealers. Management has three proposals in front of them. The premiere suggestion is to increase the number dealers in their existing markets. The second pass is to develop an exclusive franchise balance with existing non-exclusive dealers. The third recommendation is to decrease the number of dealers and focus companys resources on change magnitude support for the existing dealers. Of course there is an option for them to leave everything as it is. My suggestion is to go with the second recommendation due to the fact that exclusive dealers produced 70% of companys sales and non-exclusive dealers contributed only 30%. In order for Peak Garage Doors Inc. to reach their sales goal for 04 they bequeath have to gain more than exclusive dealers since they contribute 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 type of door the Peak specializes in. Projected industry sales for 04 were $2.05 billion, representing 2... ...Net Sales$8,452,518.40monetary value of Goods Sold$6,900,000.00 unwashed Profit$1,552,518.40 Selling, General and Admin Expense$1,600,000.00Net benefit Before Taxes-$47,481.60Choosing option 3 would lead to a los s.Option quatern 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$680,800.00 yieldAccording 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 best outcome is with the option number two which is to develop an exclusive franchise agreement with existing non-exclusive dealers.