MEMO

To: RGV Inc

From: Kayla Ramon
CC:

Date:

Re: Revenue Assessment

Thank you for the opportunity to assess your sales data in order to provide recommendations for
increasing your sales. The analysis and recommendations below are based on the data you provided,
which covers a period from May 2004 through June 2006. The analysis below is based on this data
alone. Therefore, our recommendations should be tempered by your knowledge of business realities
and your market. Please let us know if we can answer any questions concerning the analysis or the
recommendations provided.

1
ANALYSIS 1 Cost of Beverages
Analysis

Considering the cost of beverages and the discounts received, I have concluded that some
of these beverages we are purchasing are costing us a lot of money because what we pay
for them is much more than what we are getting in return. For example, we are
purchasing Chiang for $121.5 per the 34 in quantity. As in comparison to Chai, we are
purchasing it for $33.10 per 90.

Graphic

Steeleye Stout
Sasquatch Ale
Rh?nbr?u Klosterbier
Lakkalik??ri
Guaran? Fant?stica
Chartreuse verte
Chang
Chai
C?te de Blaye

0 20 40 60 80 100 120 140

Recommendation

My recommendation in getting revenue back is to drop the Chang beverage because not giving
the company any profit. If it is a must to keep the beverage then it is a must to cut the seller who
is causing the expense. More discount doesn’t always mean it is the best option. We must
consider how many in quantity we are receiving and how much it’s costing the company per
each one.

 Page 2
ANALYSIS 2 Seafood Discounts

Analysis

Based on the sales person and the amount of discount they give doesn’t mean you’ll be
paying less for the quantity you’ll receive. There are salespersons whom seem they are
giving a good deal based on their high discount, but the quantity isn’t profitable to the
amount the company is paying for it. For example, Callahan seems to be giving great
discounts from 5% up to 25%. When analyzing the sum of unit price to the quantity, it
isn’t to the best interest of the company. On Boston crab meat, Callahan gave a discount
of 10%, got bought for $90.80 and only gave 46 in quantity which means they only saved
$417.68. As in comparison to Buchanan, they gave a 5%, got bought for $47.45 which
provided 96 in quantity and they only saved $227.76. I believe the company has been
under the influence that they are getting great deals due to the percentage in discount but
it they aren’t profitable.

Graphic

Sum of Discount Level by Product vs.Total Expenses

(blank)
Spegesild
R?gede sild
R?d Kaviar
Nord-Ost Matjeshering
Konbu
Jack's New England Clam Chowder
Inlagd Sill
Ikura
Gravad lax
Escargots de Bourgogne
Carnarvon Tigers
Boston Crab Meat
0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000

Recommendation

My recommendation would be to check how much the company will save from one seller and
location before making their purchases. As mentioned, the discounts might seem good but other
factors need to be taken into consideration such as how much the expense will be compared to

 Page 3
 the discounts of others. Maybe even those who don’t give discounts still have a better deal than
those who do.

ANALYSIS 3 Produce
Analysis

Produce has had no consistent pattern within two years and it might help if it did. Knowing what
to predict for an expense forecast is important because it will let the company know how to plan
for the expense of purchasing produce.

Graphic

Recommendation

I would recommend having a set goal for every month in order to not over spend. The company
needs more detailed information in order to know when their peak points are and how to order the produce
appropriately for the demand it has.

 Page 4
SELF ASSESSMENT
From completing the Excel project, I learned that information can go a long way. Knowing
what to do with the data the company receives is crucial in order to be successful. We need to
be specific in what data is necessary and how to split the data because too much data can hurt
the company instead of helping it. If a worker is bombarded with every single information that
goes through the company’s system, mistakes might get made or information won’t be
processed quickly enough. There needs to be different departments for different data. If we
don’t know what to do with the data we might think we are doing great in the business and in
reality, we might be over spending or purchasing in this instance product that might go to
waste. In the food industry, over purchased food is a loss because it’ll go to waste and we
won’t get money from it. Knowing how to mathematically analyze the data. Excel is an
excellent program to keep information organized but you must know how to use it for it to
work in your favor.

 Page 5