Can you help me paraphrase this report REPORT Year 2017 We had taken over the co
ID: 359919 • Letter: C
Question
Can you help me paraphrase this report
REPORT
Year 2017
We had taken over the company in this year.
In this year, we set our selling price of the smartphone at $500. And we try to use low price strategy to target our customer
We spent $150,000 in our advertising and the advertising method we use in this year is social media like putting our advertisement on YouTube channel.
Supplier
We using onshore, G3 and G4 supplier. We using onshore raw supplier due to his quality is good and we using G3 and G4 raw material supplier because that the price was cheap.
Onshore supplier= 10000 unit
G3 and G4 =5000 unit total is 10000 unit
In this year, our customer generate order is 23,777 and we lag of calculation about the customer order and we had made a mistake in ordering the raw material and this had lead us to insufficient of raw material.
Production and operation
We had purchase 3 machine in this year, we need 3 machine to produce our product
Human Resources
We had hire 15 machine operator to control the machine and operator wages that we gave to them was $20 per hour
KPI of 2017
Profit= $1,208,291
Quality= 4/10
Productivity= 65%
Reputation= 9%
Green= 0%
Year 2018
In 2018, the selling price remain the same as last year $500
And then we try to invest more in our advertising due to this can increase our customer generate order and this we invest $200,000 in our advertising.
This year, our customer generate order had increase due to the advertising and the raw material supplier. The customer order had increase from 23,777 to 27,681.
Supplier
In this year, we remain the same either we using the onshore, G3 and G4 raw material supplier. Due to the last year mistake, we more focus on the order of raw material and we had ensure that we had enough of raw material to produce our product. And we had order more raw material for back up.
Onshore supplier= 17,000 unit
G3 supplier= 6,000 unit
G4 supplier=7,000 unit
Most of the raw material we order with onshore supplier due to the quality and the people would trust local supplier than offshore supplier, besides we using onshore supplier will increase our order and the quality.
Production and operation
We had increase 1 more machine in this year, the total machine was 4
Human resource
In 2018, we had hired 5 more operator due to we had increase 1 more machine and we had increase their wages from $20- $30. This year we request our worker overtime for 1 hours due to the order and we don’t want purchase another machine.
CSR
In this year we had invested $2,340,000 in CRS, we provide our employees sustainable training, health and safety training and ethic training. This will help us increase our product quality, productivity and reduce the defect of product.
KPI of 2018
Profit= $1,327,763
Quality= 6/10
Productivity= 93%
Reputation= 10%
Green= 0%
Year 2019
In 2019, we decide to increase our selling price from $500 to $800. Due to we try to earn more profit and we decide to purchase high quality material in this year.
This year we had being provided with another advertising method and we decide to use public relation, social media and newspaper as our advertising method.
Advertising method 1(social media) = $100,000
Advertising method 2(public relation) =$ 50,000
Advertising method 3(newspaper) = $ 50,000
Supplier
In this year we try to purchase raw material from onshore, G1 and G2 raw material supplier due to we try to increase our profit and our order.
We order
Onshore raw material supplier= 20,000 unit
G1 and G2 raw material supplier= 10,000 unit. Total 20,000 unit
And our customer order generate in this year is 38,539
Production and Operation
In 2019, we had purchase 2 more machine and total machine we own now is 6.
Human resource
2019, we increase 10 more operator for the other 2 new machine and the wages remain the same $30 per hour and there is no overtime require.
CSR
In 2019, we still provide our employees training but in this year we had invest one more sustainability practice in our company. This sustainability practice remain to the environment and we had decide to invest to this programs.
Sustainability practice
E-waste management: recycle 50% and reuse 50%
Hazardous E-waste management: 80% (we didn’t use incineration because of burning the waste can cause CO2)
Energy source: we use 80%
Equipment: we using the energy efficient equipment such as solar panel.
Offsetting emission: 30%
KPI of 2019
Profit= $8,319,214
Quality= 5/10
Productivity= 93%
Reputation= 41%
Green= 90%
Year 2020
The product price in this year remain same as 2019 ($800).
We had invest
Advertising method 1(social media) = $100,000
Advertising method 2(public relation) =$ 150,000
Advertising method 3(newspaper) = $ 150,000
Supplier
In this year, the onshore supplier had shut down due to the high demand and unable to pay their creditor. So, we decide to purchase our raw material with the highest quality among the offshore supplier which is G1 supplier.
We purchase 100,000 unit with them because that our customer orders is 94,935 and this will help us increase our quality.
Production and Operation
In 2020, we purchase 5 more machine and every 10 machine will need one more factory and we had 1 more factory in this year. The total machine we own is 11.
Human resource
In this year we hire 25 more operator for our 5 new machine (total 55 worker). And we had increase their wages from$30-$40 per hour. We request our worker for 3 hours overtime due to the order rate was high.
CSR
Training option
We still provide our worker for the training in this year. Same as the past 2 year.
Sustainability practice
E-waste management: recycle 80% and reuse 20%
Hazardous E-waste management: 100% (we didn’t use incineration because of burning the waste can cause CO2)
Energy source: we use 100%
Equipment: we still using the energy efficient equipment
Offsetting emission: 30%
Community Initiatives
In 2020 we decide to make some donation to the community
We try to provide donation to the poverty country that they needed to build some school and to let them had a better education, besides we try to provide some programs or campaign about the importance about our environment. This will help us increase our reputation, with good reputation there will be more people know about our product.
Donation= $5,000,000
Socially responsible investment= $5,000,000
KPI of 2020
Profit= $9,363,093
Quality= 6/10
Productivity= 95%
Reputation= 56%
Green= 100%
Explanation / Answer
Below Table Diagram will give you the Case in more convenient way to understand what is happening in the case:
Year Selling Price (In $) Advertising (In $) Supplier (In Units) Customer Demand(In Units) Production Human Resoucres CSR KPI Social Media Public Relation Newpaper Onshore G1 G2 G3 G4 Facotry Machine Headcount Wages ($/hours) Overtime(hours) Training option E-waste Management Energy source Equipment Offsetting emission Donatio (In $) SRI (In $) Profit (In $) Quality Productivity Reputation Green 2017 500 1,50,000 NA NA 10,000 NA NA 5000 5000 23,777 1 3 15 20 0 NA NA NA NA NA NA NA 1,208,291 4/10 65% 9% 0% 2018 500 2,00,000 NA NA 17,000 NA NA 6,000 7,000 27,681 1 4 20 30 1 $2340000 NA NA NA NA NA NA 1,327,763 6/10 93% 10% 0% 2019 800 100,000 50,000 50,000 20,000 10,000 10,000 NA NA 38,539 1 6 30 30 0 YES Recycle (50%), Reuse (50%) 80% Solar 30% NA NA 8,319,214 5/10 93% 41% 90% 2020 800 100,000 150,000 150,000 NA 1,00,000 NA NA NA 94,935 2 11 55 40 3 YES Recycle (80%), Reuse (20%) 100% Efficicent 30% 50,00,000 5,000,000 9,363,093 6/10 95% 56% 100%