Identify who you would clarify the projected outcomes with?

1.The projected outcomes of the business plan of National Camper Trailers Pvt ltd will be clarified from the CEO of the company Mick and also with the certain key areas of the business like factory and manufacturing department, sales and marketing department and finance and administration department.  The projected sales will be clarified from the sales and marketing departing and the projected profit and loss statements will be clarified from finance and administration department (Brigham and Ehrhardt 2013).

2.The operation manager of the company will ensure that the projected outcomes which are predicted are realistic or not. In others words the operation manager will be judging whether the projected targets are achievable or not (Heizer 2016).  The operation manager will be considering the figures of sales and expenses of the company in the previous year in order to recognise a trend which can be identified from the past years (Higgins 2012). As per the figures of past year 2014 and 2015 sales is on a decreasing trend as shown in 2014 which is $4817078 and the figure decreases to $4425610 as shown in 2015. As per forecasted sales figure of 2016 are shown higher as the company plans to increase its investments which is necessary to built a digital marketing presence in websites. National Camper Trailers is expecting increase in sales revenue, however the operating expenses will also be increasing as per estimates.

3.Budget or financial plan is the core part of the business as they measure the financial performance and monitor income and expenditure of the company (Hofstede 2012). These statements include cash flow projections, long term budgets, projected sales and cost figures (Healy and Palepu 2012). In case of any variances which occur in a financial plan, the operation manager will be negotiating the changes with the Sheryl, the finance and administration department head and also the accountants, financial managers, supervisors. The operation managers will be pointing the variances to the finance team and discuss what changes which the operation manager expects to done which can rectify situation (Michalski 2013). The operation manager will call a meeting with the finance team and also discuss what changes the operation manager expects in financial projections and how they will be implementing the same (Moore et al. 2014) 

4.Contingency Plans are needed in a budget in the event things does not go as the plan of management. Such plans can be cause by anything which can affect the business. Moreover such plans need to be flexible enough so that any kind of changes can be met (Ruiz-Torres, Mahmoodi and Zeng 2013).

Analyse and explain how you would determine the projected outcomes are achievable, accurate and comprehensible?

In the given situation the main supplier of National Camper Trailers has increased their prices by 10 % without giving prior notice to the company. This will increase the operating expenses drastically which in turn will be reducing the net revenue which the company can earn as per the financial projection. This situation will affect the financial plan of the business and the targets of the company may not be met (Akingbola 2013). The operation managers needs to discuss this situation with the CEO of the company, Mick and also with Sheryl who is the head of Finance and discuss how will this change adversely affect the projected target of the company. The following recommendations are suggested to tackle the situation, which are given below:

1. The operation manager can set a meeting with the supplier in order to negotiate the terms of engagement.
2. The company can look into market and seek a new supplier who is willing to provide the same thing as per the requirement of company in respect to price and quality.
3. Another thing that the management can do is that reduce the variable costs so that the company can meet with the additional expenses without affecting the target of the company.
4. The company can take a loan from banks in order to finance the additional expenses. Such loan can be short term or medium term loan in order to ensure that there is smooth running of the business so that the targets are met.

The plan has to be implemented as soon as a decision is arrived at and the minimum adjustments should be made in a week’s time whatever solution the management decides.

5.Once the financial projections are completed and accepted by the top level of management, the operation manager will be calling a departmental meeting where all the department heads and supervisor will be present and the operations manager will be discussing the key areas which the management has to put focus on and also discuss the various role of different departments of the company will play in the attaining the financial targets. The operations manager role here is to ensure that all the department head are clear on what the company plans are and also ensure that there is no gap in communications (Coombs 2014). The operations manager can also use mail to see that every employee of the organisations is aware of the business plans and clear on how the management will be achieving them. The operation manager will be informing the accounting and finance department about their role and expect regular reports on the steps which the department takes to achieve the goals. 

In case of National Campers Trailers, the operation manager will call in a meeting with all the department heads and explain the roles they have to play as the company has projected an increased sales of $4720000 for the year 2016 and the company plans to increase its investments and turn the decreasing trend of the company with respect to sales revenues while keeping the operating expenses margin at constant level.

6.The operation manager plays a vital role in implementation of various strategies in order to achieve the goals of the business. The three ways in which the operation manager can help his teammates in order to stay in the track of the financial plan of the business are given below:

1. The operation manager can supervise the activities of the different departments in order to establish the departments are performing as per the plan of the business.
2. The operation manager can order the different departments to submit regular reports so that the operation manager can analyze such reports and decide whether the company is moving as per plans or not (Kerzner 2013). If any discrepancies occur the operation manager can call on the department at fault and plan according to rectify the situation.
3. The operation manager can personally look into new developments through reports, manager’s updates. The operation manager can motivate and even advise the different teammates how they can achieve the goals efficiently (Hawkins et al.2012).

7.

1. Financial Resources of the organisations include cash and cash equivalents. As per the analysis of the projected financial plan of the National Campers Trailers, the company will be requiring a large amount of capital in order to rectify the declining trend of revenues of the company (Brigham and Ehrhardt 2013). In a similar way the company needs to reduce the operating and variable expenses of the business so that the financial results of the company can be improved. The company will be requiring huge amount of capital which the operation manager have the option to take a loan or issue new share in the market in order to get access to more capital for the company. The most appropriate means for keeping control of the financial resources of the company is by a budget. Budgeting techniques allow the operations manager to have a strict control and supervise that the money is used in the way as per the plans of the business. The operation manager can ask for regular reports which can update the operation managers about the uses of funds in the business.
2. Human Resources: The management of the company must maintain a record of the number of employees working under the company. The operation manager also needs to see the recruitment process of the company and also keep a track of the employee turnover in the company (Bratton and Gold 2012). The human resources in any organisation are important to achieve the goals of the company. The operation manager can access the labour budget and have the list of employees working with their level of productivity. The operation manager can check whether each employee is performing as per requirement from the productivity report of each department. If any employee is under performing than the reasons should be asked for such under performance.
3. Record Keeping System: The operation manager can access any records of accounts and analyze either personally or seek help of an expert to confirm whether every requirement of the accounting laws is maintained (Musah and Ibrahim 2014). It is also the obligation of the operation manager to analyze whether any discrepancies exists or not. The operation manager can call up the accountants and ask them to present a presentation on the performance of the company in financial term in contrast with the projected targets. Businesses will need accurate and efficient record keeping systems to allow them to collect revenue, pay employees and suppliers, and pay taxes in a timely manner and using the correct processes. Nowadays electronic record keeping system has been introduced which
4. Specialist Advice or Support:  Such advices can be obtained by the operation manager either from external sources or internal sources. The operation manager can be requiring expert advice on matters such as accounting, book keeping and technical advices (Lacey and Lomas 2013). The operation manager will be consider the advices of the experts as the areas are of technical importance and concentration on the area is important in order to avoid risks in future.

From your analysis of the financial projections document for National Camper Trailers (NCT), you discover that changes are required. How would you negotiate this change and with whom would you negotiate?

8.The operation manager will be discussing the areas where the management of the company needs to implement monitory systems with the CEO of National Campers Trailers. The main areas where the company must monitor are the finance and administration department, book keeping department, accounting department (Aliverdi, Naeni and Salehipour 2013). The role of the operation manager is very important as he is responsible monitoring the operations of the business. The process of monitoring of cost and expenditure of the business can be done by preparing the reports of assets, consumables, stocks, expenditures, cost records. These reports are then to be review by the management and specially the operations manager. The operation manager can also check the different books of accounts which are different ledgers and income statements which can depict the business’s performance. The operation manager will review the above mention books of accounts, on the basis of which the operation manager will be implementing strategies of control over costs and expenditure. In the case of National Campers Trailers the company is planning to overturn the decreasing trend of the company in sales revenue for which the management needs to provide strict control and supervision. 

9.In case of National Campers Trailers, the operation manager will be analyzing the cost records of the company and determine whether the expenditures of the company are relevant. The projected operating cost of the company is shown at $1553800. The projected cost of the company show that the costs will be controlled and the company plans to bring down the costs in comparison to the previous year. The operation manager of the company may adopt costing techniques like standard costing, in which the actual results are compared with projected results and any variances are dealt with accordingly. This technique is useful in identifying expenditure overrun and then investigate the reason for such (Ramabodu and Verster 2013). The operation manager should analyze the results with standards set in the cost budget and in case of any variances investigate the cause of such a variances.

10.A contingency plan aim to provide the business with an alternative plan which will be implemented in case some unforeseen circumstances arises in the business which might affect the business plans or the overall business. The contingency plans includes outsourcing human resources of the organisation, seek further funds from the banks., recycling and reuse policy of the business and other plans also. Once you have developed the contingency plan, it needs to be implemented, monitored and modified whenever necessary (Griffin 2013). As a business changes, the plans will also be needed to be reviewed and updated to make sure that any new potential problems are accounted for in the plan. In case the operation manager wants to modify the plan he must communicate the same with the departmental heads and ensure that they have understood the changes, let the employees of the organisation know what are the roles they will play in the contingency plan, audit the plan from time to time to establish any developments.

Develop a contingency plan for National Camper Trailers that would address this adverse change with the Financial Projections. Ensure your contingency plan includes how you would counteract or recover from this.

11.Statement of purpose

The main purpose of this report is to analyze the sales figures of National Campers Trailers for 2015 and on the basis of which sales projections of 2016 are made. The sales figures of the company for the previous years show a declining trend.  

Exact Focus

The main focus of this report is to analyze the reasons and causes of the declining sales of the company. The sales figure has decreased from $4817078 in 2014 to around $4425610 in 2015. The report will be focusing on the areas where the sales can be improved and also include recommendations which can improve areas of sales (Sung and Choi 2012).

Nature of Contributory Evidences

The report will be analyzing the sales of National Campers Trailers which was $4817078 in 2014 and this further decreased to $4425610 in 2015. Thus there is a decreasing trend in the sales figure which shows a decrease in percentage of sales to 15% in 2015, overall profitability has reduced from $1.1M to $0.650M in 2015. However the management plans to change this trend in 2016 by introducing strict control.

Conclusion

The problem of sales declining is a serious problem for the business. As the sales decreases so does the profitability of the business and the business can face bankruptcy if this continues.  The management of the company can improve the sales by proper promotion of the products of the company and critical reengineering if the situation requires such a measure. The company will be requiring more capital which can be financed from banks for promotion and reengineering of business process.

Generation of report

The report will be generated by the sales and marketing head, kennedy. The company will be spreading through digital marketing and proper marketing of the products. 

Authorised by: CEO Mick

Date: 15th January 2016.

12.The sources of information for the operation manager are discussed below:

1. Internal sale analysis of the company with report relating to all departments which includes cash register, spreadsheets, audit reports.
2. The data can be collected from the staff of revenue areas and also obtain a breakdown of the wages which are paid to them.
3. Analysis of stocks movements as per the budget set by the management, which includes purchases records, sales records.

13.The current financial management of the company is not very effective as the company. The sales figure of the company is declining and also the costs of the company is increasing which is major risk for the company. The sales growth shows that the company is achieving negative growth from 2013 onwards which means that the company is continuously earning losses for the business. There is no stability in the business and this is clearly shown by the losses in cash flow from operating activities and reduction in gross margin of National Campers Trailers (Balachandran and Mohanram 2012). The EBIT of the company is also on a decreasing trend which shows the company has no scope for increased dividends which will be upsetting the shareholders of the company. In order to reverse this situation the company must adopt a plan which reduces cost which are variable and ensure that proper promotion is done for the product (Hevert 2013). The company need to access the digital market to have a better reach to the people. The company can add innovative ideas and make their products more appealing. These findings will be discussed with the CEO Mick and different departmental heads of National Campers Trailers.

Describe how you would disseminate relevant details of the Financial Projections Documents to your team members

14.The process of monitoring of cost and expenditure of the business can be done by preparing the reports of assets, consumables, stocks, expenditures, cost records. These reports are then to be review by the management and specially the operations manager. The operation manager can also check the different books of accounts which are different ledgers and income statements which can depict the business’s performance. The operation manager will review the above mention books of accounts, on the basis of which the operation manager will be implementing strategies of control over costs and expenditure. Thus he will be able to supervise all the operations in the business. 

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