We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Background Regarding The General Price Of Goods Sold In The London Area Essay Sample

essay
The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 530
  • Category: company

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Background Regarding The General Price Of Goods Sold In The London Area Essay Sample

In 2012 we started up a sports retail company that was originally founded with the aim of targeting the huge number of athletes, sports fans and tourists that were expected during the course of the 2012 Olympic Games in London. We expected to make large sums of profits in 2012 during our first year of sales. In fact we were bitterly disappointed with the way business went compared to the high expectations that we had for the first year. The even bigger surprise was the rate at which the business grew over the next few years as a result of the exposure from the 2012 Olympic Games.

We sold three sports items, Trainers, sports jerseys and T-shirts. In order for us to be competitive we had to study and research on a number of our competitors. Generally trainers were sold at about 50, sport jerseys 45 and T-shirts at about 30. We quickly realised that as we were not a known brand we would have to cut our profits short and undercut our competitors as to attract and tap into their customer base.

Depending on the cost of items, performance on previous sales and of course the selling price of our competitors had led us to the decision as to what our selling price was going to be. The average price of our trainers was 40, sports jerseys 30 and 20.

With a discount rate of 10% and a span of 7 years, the projected cash flows are worth 2,649,758 today which is greater than the initial 500,000 paid. The resulting NPV of the project is 2,149,758, which indicates that pursuing the project may be and optimal decition.

RECOMMENDATIONS AND CONCLUSION

As was mentioned in the general background, are company targeted sports fans and tourists that were expected during the course of the 2012 Olympic Games in London. Sales expectations were not met in the first couple of years especially in year 1. Year 3 was when sales really started to pick up, We hired a third employee to help push sales further. Our customer base grew very quickly and we had to consider keeping a larger stock as the demand for our goods was very high. We took a gamble and decided to move to a more expensive but, bigger and better located shop space. The gamble played off and sales profits were enormous, significantly more than previous years. Profits in the last year 2018 were even greater than 2017 with total sales of 4.6 million.

The rate at which the business is growing is very fast and steady, and at this rate Olympic sports Asseccories Ltd will be one of the most successful and recognised sports Retail Company in the London area. They are already so successful, but for even greater success and profits I would recommend that the shop being in such a busy location should be opened for longer hours and also for at least 6 hours on a Sunday. I would also suggest that 2 or 3 more sports items should be introduced to the sales line for 2019 and the company will surely make bigger profits.

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Australian food and liquor business Woolworths company

S1. Pioneer and among the oldest companies to introduce the modern retail trade model Woolworths limited was founded in September 1924, which was the very first store based company in Australia during that time. As a result, it gains customer’s interest as there was variety of groceries, magazines, health product and so on just in one place. Soon, Woolworths company had a little interest in shareholders...

Coca-Cola Company

Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups. Coca- Cola Company has been found 131 years ago in May 8,1886 in Atlanta, Georgia, U. S. by Asa Griggs Cadler and John Pemberton. John Stith Pemberton is pharmacist who invented formula for the most popular product Coca-Cola in 1886 in Columbus, Georgia. The formula is...

The American landscape and lifestyle

“Baseball caps and hats are as much a part of the American landscape and lifestyle as just about any apparel accessory.” (Threadlogic Source) If the United States had a national hat, it surely would be the baseball hat. The popularity of logoed embroidered headwear is evident anytime you are out in public, and especially at a sporting event, men, women, and children show support for...

Roles and responsibilities of data users

In order to successfully gather data from the users, conducting an interview must be a good idea. Hence that may insufficient as users may not able to describe everything by themselves as the ideal meaning may not portrays only by words. So that it is better if the user can be observed while they use an interface they currently use which may portrays much information....

Codman & Shurtleff Private Company Information

Codman & Shurtleff, Inc. , was established in 1838 in Boston by Thomas Codman to design and fashion surgical instruments. In 1964, Codman & Shurtleff was acquired by Johnson & Johnson inc. Codman & Shurtleff operates from three manufacturing locations and a distribution facility in Massachusetts. They employ about 800 people in the United States. Codman & Shurtleff mission statement was product oriented while that...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member