The paper "Mathematical Model Based on the Product Sales Market Forecast " is a perfect example of a Management Assignment. BBQ FUN is a renowned company in Australia. Most analysts have ranked it as one of the best companies that produce outdoor living products. The company started in the year 1950 in Brisbane. BBQ FUN started as a little shop. Then it started as a business making of charcoal ovens. Then it became reputable among the people of Brisbane. It has stood the test of time. BBQ FUN is progressing into producing more outdoor living products and then became substantively famous in entire Australia.
In the upcoming time, the management of BBQ FUN thinks to take this company oversees. The management is very optimistic to work hard and produce the even better quality that will catapult them into the world stage of the competition. Question 2 Data 1 Sample of 50 customers spent on barbecue equipment $ = 23244.21/50Question 3 Central tendencies Data 1 Mean = sum of all variables/ the number of variables = 464.88 Mode = none Median = (403.03 + 402.65)/2 = 402.84 Data 2 Mean = 34,000,000/ 4 = 8,500,000 Mode = none Median = 9000000 Chi-Square Data 2 C2 = (o-e) 2/e (11,000,000 – 10500000)2/ 10500000 = 154.30 Dispersion Data 1 Range = 746.70 – 51.
80 = 694. 90 Data 2 Range = 11000000 – 5000000 = 6000000 PERFORM QUALITATIVE ANALYSIS OF COMPARATIVE MARKET INFORMATION ANALYSIS OF PERFORMANCE DATA The breakeven point of the organization indicated that $1.1 million in sales were needed for the organization's investment to equal profits. The margin of getting to the breakeven point was so low compared with the profits that the organization realizes in their first year. Qualitative it could be argued that the business was performing well in the market.
The fixed cost of the business was $ 150, 00 while the variable cost was 40% of the sales. This translated into the implication that a sale of $1.0 will have sufficed to pay the fixed and variable cost altogether. Notably, the business did not spend a lot so the breakeven point was not high to need a lot of sales to make it (Watson, 2014. Pg 37) OVER-PERFORMING PRODUCT AND SERVICES OF BBQ FAN The product of BBQ has been performing pretty well in the market. The local competition from the independent.
The ranges of competition range from outdoor goods to imported goods. The outperforming goods is attributed to the extensive advertisement. Strong in replacements segment rather than new and refurbished dwelling. The goods consequently gained strength in the market of the Brisbane market. The over-performing product has very good quality and has been produced in abundantly by the organization to cater for loss or low-profit margins of underperforming products of BBQ In the effect, the organization has been able to normalize and stabilize the profit margin and keep competing with other UNDER-PERFORMING PRODUCTS AND SERVICES OF BBQ FAN The underperforming products also has been used as a measure of quality during qualitative assessment.
If the huge number of various product produced by BBQ are underperforming then generally the qualitative assessment has a poor score. For instance in BBQ, this is only few underperforming products. BBQ has used massive campaign to reverse the trend into a positive trend. The trend has been improving since the improving on quality and knew edging the consumer about the products of BBQ FORECASTING Existing markets The sales of the business were very promising where they gradually increased with profitability being reached by the beginning of 2009.
Gross profit was anticipated to be at 50% The sale forecast was as follow The existing market of BBQ seemed promising since the total sales kept increasing at an increasing rate. In the year 2010, the sales were 11000000 and then they increased considerably to 12000000 and then finally in the year 2012 they increased to 15,000000. The trend was promising showing that qualitatively the business was doing pretty well and its future sales had prospects (Lihong, 2014.Pg 1362) Analyze the Market Performance of the existing and potential competitor and their product or services, to identify opportunity or threat to the organization The market performance of BBQ products has been performing well.
The profit has ever been increasing indicating that the products are performing well on the market. The following table of profit for the three years. The gross profit increased from 5,500,000 to 6,000,000 and finally 7,500,000 in a period of three years. This is indicative that BBQ products have been performing well on the market. Prepare, plot and interpreted the data for visual Presentation. The bar graph above shows the sales of BBQ fans between the years 2007 and 2010.
The sales have been increasing steadily but at a reducing rate. Between the years 2007 and 2008, the increase was 3000000. In the subsequent years, the sales dwindled to 1000000 increase. The trend if not checked could make the sale reduce to the unprofitable margin. From such an analysis, the management needs to determine the cause of increasing sales at a reducing rate so that the problem can be fixed.
The problem could be a result of a low advertisement, the intrusion of a competitor in the market who has taken over part of the sale or the qualities of the products are not on the attractive threshold. Once the problem is realized then it can be easy to reverse the trend and have sales increasing at an increasing rate. The success of BBQ has been guided by the following pillars Anti-discrimination legislation and principals of equal opportunity, equity, and diversity Ethical principles Australian direct marketing association ADMA direct market code of practice Free TV Australia Commercial Television Industry Code of practice Privacy laws
Lihong, L, Jie, S, Yan, L, & Hai, X, 'Mathematical model based on the product sales market forecast of markov forecasting and application', Journal of Chemical & Pharmaceutical Research, 6, 6, pp. 1359-1365, Academic Search Premier, viewed 22 October 2014.
Watson, J, 'what is 'typical' for different kinds of data?’ Australian Mathematics Teacher, 70, 2, pp. 33-40, Academic Search Premier, viewed 22 October 2014.