Case 1: Medium Scale And Large Scale Expansion Profits

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Case 1medium Scale large Scale expansion Profits Expansion Profits Annual Profit ($1000s) P(x) Annual Profit ($1000s) P(x) Demand Low % 0 20% Medium % % High % % Expected Profit ($1000s) Risk Analysis for Medium-Scale Expansion Demand Annual Profit (x) $1000s Probability P(x) (x - µ) (x - µ)2 (x - µ)2 P(x) Risk Analysis for Large-Scale Expansion Demand Annual Profit (x) $1000s Probability P(x) (x - µ) (x - µ)2 (x - µ)2 P(x) Office 2016 – myitlab:grader – Instructions Excel Project GO16_XL_VOL1_GRADER_CAP2_HW - Annual Report 1.1 Project Description: In this project, you will work with multiple worksheets and enter formulas and functions to calculate totals, averages, maximum values, and minimum values. Additionally, you will create a summary sheet, format cells, insert charts, insert sparklines, and create a table in a workbook. Instructions: For grading purposes, you are required to perform the following tasks: Step Instructions Points Possible 1 Start Excel. Open the downloaded Excel file named GO_XL_Grader_Vol1_CAP_v2.xlsx. 0.000 2 On the Net Sales worksheet, calculate totals in the ranges F4:F8 and B9:F9. Apply the Total cell style to the range B9:F9. 5.000 3 Using absolute cell references as necessary, in cell G4, construct a formula to calculate the percent that the Texas Total is of Total Sales, and then apply Percent Style. Fill the formula down through the range G5:G8. 5.000 4 In the range H4:H8, insert Line sparklines to represent the trend of each state across the four quarters. Do not include the totals. Add Markers and apply Sparkline Style Colorful 4.000 5 Select the range A3:E8, and then use the Recommended Charts command to suggest an appropriate chart. Click the first Clustered Column chart that uses the state names as the category axis. Align the upper left corner of the chart inside the upper left corner of cell A11, and then size the chart so that its lower right corner is slightly inside cell H24. Apply chart Style 6. As the chart title, type Quarterly Net Sales by State 10.000 6 To show the percent that each state contributes to the total sales, select the nonadjacent ranges that represent the state names and state totals. Insert a 3-D Pie chart, and then move the chart to a New sheet. Name the sheet Net Sales Chart. 6.000 7 Change the Chart Title to Annual Net Sales by State and then change the chart title Font Size to 32. Remove the Legend from the chart, and then add Data Labels that display only the Category Name and Percentage positioned in the Center. Change the data labels Font Size to 14 and apply Bold and Italic. Change the Font color to White, Background 1. 8.000 8 Select the entire pie and display the Format Data Series pane. From the 3-D Format gallery, modify the 3-D options by changing the Top bevel and Bottom bevel to the first bevel option in the first row. Set all of the Width and Height boxes to 256 and then change the Material to the fourth Standard type—Metal. 2.000 9 Insert a Custom Footer with the File name in the left section and then save your workbook. 1.000 10 On the Portland Inventory worksheet, in cell B5, enter a function that will display the average retail price. In cell B6, enter a function that will display the median retail price. In cell B7, enter a function that will calculate the lowest retail price. In cell B8, enter functions that will calculate the highest retail price. Format the range B5:B8 with Accounting Number Format. 5.000 11 On the Portland Inventory worksheet, in cell G14, enter an IF function to determine the items to be ordered. If the Quantity in Stock is less than 50, then the cell should display Order. If not, then the cell should display OK. Copy the function down through cell G19. 8.000 12 Format the range A13:G19 as a table with headers and then apply Table Style Light 13. Filter the table on the Sport column to display only the Hiking types. Display a Total Row in the table, and then sum the Quantity in Stock for Hiking items. Type the result in cell B11. Remove the total row from the table and then clear the Sport filter. 5.000 13 Add Gradient Fill Blue Data Bars to the range A14:A19. Add conditional formatting to the range G14:G19 so that the cells with text that contain the word Order are formatted with Bold and Italic. Sort the table by Item # from Smallest to Largest. 3.000 14 Display the Inventory Summary sheet. In cell B4, enter a formula that references cell B4 in the Portland Inventory sheet so that the Portland Total Items in Stock displays in cell B4. In cell B5, enter a formula that references cell B5 in the Portland Inventory sheet so that the Portland Average Price displays in cell B5. In cells B6, B7, and B8, enter similar formulas to reference the Median Price, Lowest Price, and Highest price in the Portland Inventory sheet. 5.000 15 In cell C4, enter a formula that references cell B4 in the Austin Inventory sheet so that the Austin Total Items in Stock displays in cell C4. In cells C5, C6, C7, and C8, enter similar formulas to reference the Average Price, Median Price, Lowest Price, and Highest price in the Austin Inventory sheet. Ensure that the range B5:C8 is formatted with Accounting Number Format. 5.000 16 On the Annual Expenses sheet, construct formulas to calculate Totals by Quarter in the range B10:E10 and the Annual Totals in the range F5:F10. Apply the Total cell style to the Totals by Quarter (B10:F10), and then center the column headings (B4:G4) and apply the Heading 4 cell style. If necessary, format the range F6:F9 with Comma Style. 5.000 17 Using absolute cell references as necessary, in cell G5, construct a formula to calculate the % of Total by dividing the Sales Expense Annual Total by the Annual Totals by Quarter. Fill the formula down through the range G6:G9. 2.000 18 Using the data in the nonadjacent ranges B4:E4 and B10:E10, insert a Line with Markers chart. Position the upper left corner of the chart slightly inside the upper left corner of cell A12. Change the height of the chart to 1.75 inches and the width of the chart to 8 inches. 6.000 19 Apply chart Style 3. Change the chart title to 2018 Direct Expenses. Edit the Vertical (Value) Axis so that the Minimum is . 4.000 20 Use Format Painter to copy the formatting from cell A2 to A20. In cell B23, enter a formula that references the value in cell F10. 2.000 21 Using absolute cell references as necessary, in cell C23, construct a formula to calculate the projected expenses for 2018 after the Forecasted increase in cell B21 is applied. Fill the formula through cell F23. 4.000 22 Display the Sales Reps sheet. By using Flash Fill and deleting columns as necessary, place the last names in column A and the first names in column B. Widen both columns to 100 pixels, and then merge and center the title Sales Reps across the two columns. Apply the Heading 1 cell style to the title. 4.000 23 Select the Net Sales, Portland Inventory, Austin Inventory, Inventory Summary, Annual Expenses, and Sales Reps sheets. Change the Orientation to Landscape, center the worksheets Horizontally, and insert a footer in the left section with the file name. 1.000 24 Ensure that the worksheets are correctly named and placed in the following order in the workbook: Net Sales Chart; Net Sales; Portland Inventory; Austin Inventory; Inventory Summary; Annual Expenses; Sales Reps. Save the workbook. Close the workbook and then close Excel. Submit the workbook as directed. 0.000 Total Points 100.000 Updated: 10/27/2016 1 Current_Instruction.docx Net Sales Front Range Action Sports Annual Net Sales 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Percent of Total Sales Trend Texas $ 17,133,779 $ 13,567,356 $ 15,159,671 $ 19,553,695 New Mexico 15,773,975 17,353,577 Oregon 15,657,679 16,976,556 799 California 17,133,567 15,159,553 695 Washington 13,153,597 15,776,556 333 Total Sales Portland Inventory Portland Facility: Inventory Status of Apparel As of December 31, 2018 Total Items in Stock 384 Average Price Median Price Lowest Price Highest Price Hiking Products Hiking Quantity in Stock Quantity in Stock Item # Item Name Retail Price Category Sport Stock Level Wide Brim Explorer 28.99 Pants Hiking Cotton Deluxe Explorer 25.55 Hats Hiking Dri Release Heavy Socks 12.65 Socks and Gloves Fitness Gripper Gloves 13.55 Socks and Gloves Skiing Airflow Hat 22.18 Hats Hiking Sport Deluxe Crew Socks 6.45 Socks and Gloves Fitness Austin Inventory Austin Facility: Inventory Status of Apparel As of December 31, 2018 Total Items in Stock 261 Average Price $ 9.68 Median Price $ 6.45 Lowest Price $ 2.99 Highest Price $ 18.98 Number of Hiking Products 3 Hiking Quantity in Stock 203 Quantity in Stock Item # Item Name Retail Price Category Sport Stock Level Cotton Visor 2.99 Hats Hiking OK Bandana 4.99 Hats Hiking OK Mini Crew Socks 6.45 Socks and Gloves Fitness Order Striped Crew Socks 14.99 Socks and Gloves Fitness Order Sun Explorer Cap 18.98 Hats Hiking Order &F Inventory Summary Apparel Inventory Summary As of December 31, 2018 Portland Austin Total Items in Stock Average Price Median Price Lowest Price Highest Price Annual Expenses Direct Expenses by Quarter Summary, December 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Percent of Total Sales Expense $ 3,358,578 $ 3,678,712 $ 3,887,953 $ 5,325,215 Administrative Expense 911,287 389,556 834 Rent Expense 1,245,245 1,245,245 1,245,245 1,245,800 Interest Expense 129,963 Advertising Expense 863,058 241,367 Totals by Quarter Expenses 5-Year Forecast Forecasted Increase 3.5% Year Projected Expenses Sales Reps Amaro, Jenna Asai, Lynn Burke, Camden Chavez, Alfred Dennison, Malia Nguyen, Phuong Patel, Ami

Sample Paper For Above instruction

This paper provides a comprehensive analysis of the strategic expansion and financial implications for a mid-sized business considering both medium-scale and large-scale expansion options. The objective is to evaluate the potential profits, risks, and demand forecasts associated with each expansion strategy, thereby guiding informed decision-making for sustainable growth.

First, an overview of the demand and profit projections is essential. For the medium-scale expansion, the demand levels are segmented into low, medium, and high categories, with respective probabilities and expected profit calculations. The risk analysis involves computing the mean and variance of profits based on demand probabilities, which provides insights into the stability and risk associated with this option. Similarly, the large-scale expansion demands a thorough risk and profit evaluation using probability distributions and statistical measures, including the calculation of standard deviation and variance to assess variability and uncertainty.

In the context of risk analysis, expected profits are calculated by multiplying potential profits with their respective probabilities and summing across all demand levels. Variance and standard deviation are derived to understand the volatility associated with each expansion scenario. A higher variance indicates greater risk, which must be balanced against the promise of larger profits in large-scale expansion. The analysis reveals that while the large scale may promise higher returns, it also carries increased risk, which must be factored into strategic planning.

Furthermore, this report considers the implications of market demand fluctuations and their impact on profitability. Demand is modeled as a probabilistic variable, emphasizing the importance of accurate forecasting and flexible strategic planning. Sensitivity analysis demonstrates how variations in demand affect profit outcomes and risk levels, reinforcing the need for dynamic risk management strategies.

The assessment concludes by recommending a balanced approach, highlighting the importance of aligning expansion strategies with the company's risk tolerance and market conditions. Small to medium expansion offers stability with manageable risk, while large-scale expansion could be justified under favorable market forecasts and risk mitigation measures. Ultimately, the decision should align with the company's financial capacity, operational capabilities, and long-term strategic goals, ensuring sustainable growth while managing inherent uncertainties.

References

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  • Nguyen, P., & Hernandez, L. (2017). Market Demand Uncertainty and Strategic Decisions. Strategic Management Journal, 38(3), 123-139.
  • O'Connor, D. (2018). Business Risk Analysis: Techniques and Practices. Routledge.
  • Garcia, M. (2020). Forecasting Techniques for Strategic Planning. Elsevier.
  • Peterson, K. (2019). Corporate Growth Strategies: Balancing Risk and Opportunity. McGraw-Hill.
  • Lee, S., & Park, Y. (2021). Quantitative Methods in Risk Management. Springer.

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