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If you had the opportunity to replay any one quarter, which quarter would it be, what decisions would you change, and why?
As we wind down our business planning for Hisco, we have a unique opportunity to reflect on the business lessons we have gleaned that will help us be sharper in our own careers and future real-life scenarios. There are numerous lessons that I have taken from this class and simulation. Ultimately, if I was given the opportunity to replay one quarter it would certainly be Q1.
What decisions would you change, and why?
The first reason for that answer is my general comfort level with the company was low in the first quarter. As I progressed throughout the year, I became more confident in the numbers, how to optimize the adjustment of the available levers, and finding a strong balance between offense and defense tactics for competing in the marketplace. Looking back, I am pleased with the SWOT and strategy that I compiled but there is room for improvement on how best to implement the maximum impact of the strategy through the simulation structure.
Regarding changes in decision making I would choose to not invest in the large product improvement project again in Q1. The project was not only quite expensive, but it also caused our Q1 performance overall to be poor. It also resulted in us needing to make fairly significant cost cuts in order to re-balance our financial position in the second half of the year.
If given the chance I would also choose to reach out to key customers before launching into Q1. “One key source of good data is your customers…Probe to find out what they like and don’t like about doing business with you. Ask for their insights into potential changes in the marketplace” (Fotsch, B., & Case, J. 2017). If we were able to secure this level of insight, I am confident that it would prove to be highly valuable in our strategic precision and effectiveness throughout the year.
I would also expand my innovation strategy objective to be more specific related to product enhancements. “..if your business isn’t growing, pushing the envelope, thriving, and maximizing profit, then all you’re really doing is suffering a slow death” (Mosca, L. 2017). I feel that we did ok in this category but if given the chance to re-do I would be much more aggressive in my innovation objectives.
Last, I would want to solidify a specific methodology to overlay on our strategy for process improvement. “While it is possible to fix most issues with any process improvement methodology and associated tools, it is not efficient. We should select the method and tools that best fit the problem and the resources at hand” (Antony, J., & Gupta, S. 2019).
Antony, J., & Gupta, S. (2019). Top ten reasons for process improvement project failures. International Journal of Lean Six Sigma, 10(1), 367-374. doi:http://dx.doi.org.proxy-library.ashford.edu/10.1108/IJLSS-11-2017-0130
Fotsch, B., & Case, J. (2017). Six tips for planning a great 2018. Forbes. September 5th. Retrieved from https://www.forbes.com/sites/fotschcase/2017/09/05/six-tips-for-planning-a-great-2018/2/#634dece01060
Mosca, L. (2017). Business planning for 2018, and how to cash in on the new year. Forbes. October 18th. Retrieved from https://www.forbes.com/sites/louismosca/2017/10/18/business-planning-for-2018/#6f5b12f6692d
If you had the opportunity to replay any one quarter, which quarter would it be, what decisions would you change, and why? In 150 words or more, discuss what changes you would make.
Looking back at my income statements, I would say that I would want to replay Q2’21. I only hired 7 people and could have easily hired 5 more since we had just picked up an investor and had a cash surge to cover the costs of additional employees. I also kept the price the same that quarter as the previous at $575.00. With no more than a 20% increase in price (+$115/$690 max) I could have raised the price to $650 and still be within increase parameters. At a price point of $650 and selling 1,457 units, we would have netted $947,050. This would have been an increase of $109,275, clearing the negative $18,462.68 net income I still had. According to Kliestik, Valaskova, Lazaroiu, Kovacova & Vrbka, “The liabilities-to-total-assets ratio is the second most significant which measures the ratio of corporate assets covered by liabilities. A high liabilities-to-total-assets ratio can be negative, which indicates the shareholder equity is low and potential solvency issues. Enterprises in signs of financial distress will often have a high liabilities-to-total-assets ratio” (2020). We were in never any real trouble when we took over, but it was evident the previous years were going to be an issue if they stuck with the same mindset and being open to changes. I was able to increase the price the following quarter (third) and was able to reduce the end of quarter cash/debt significantly. I could have been profiting earlier than the third quarter and could have ended the fourth quarter with more than $10.1K ending quarter cash/debt.
Fotsch, B., & Case, J. (2017, September 5). Six tips for planning a great 2018. Forbes. Retrieved from https://www.forbes.com/sites/fotschcase/2017/09/05/six-tips-for-planning-a-great-2018/2/#634dece01060 (Links to an external site.)
Kliestik, T., Valaskova, K., Lazaroiu, G., Kovacova, M., & Vrbka, J. (2020). Remaining Financially Healthy and Competitive: The Role of Financial Predictors. Journal of Competitiveness, 1, 74–92. https://doi-org.proxy-library.ashford.edu/10.7441/joc.2020.01.05 (Links to an external site.)
Mosca, L. (2017, October 18). Buisness planning for 2018, and how to cash in on the new year (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/louismosca/2017/10/18/business-planning-for-2018/#6f5b12f6692d (Links to an external site.)
Please use peer review articles for responses.