It is already Week 9 of the semester and its scaring me a little. This semester has definitely gone by fast. It felt like last week we had our very first roll over, with pretty satisfying results. However this week has been, not so great, results wise. Firstly, our SHV has been decreasing due to the combination of competitors dominating a significant market share and our decisions that we have implemented. Secondly we are making a huge loss in profits. Now this is worrying due to the fact that we are making a high revenue, in comparison to other firms, but our expenditure is huge contributing to the major profit loss. We identified this and thought this may be due to the cost of developing so many products and establishing our high cost strategy or was it because we're spending too much money on specific areas that don't need to be? We had to sit down to evaluate all our decisions, calculating some balance between the numbers and deciphered relationships with the different functions of the company. We came to a conclusion that we had to cut down a lot of cost on advertising for particular products as the amount we were spending was not balancing with the sales. This has certainly been one of the hardest weeks, as our results keep were getting worse. However after looking at the results generated from last night, resulted in us having mixed emotions. We are out of our money rut however, how SHV decreased significantly. I think next week will be another hard week for us. We need to utilise our time together and actually look at the reports and make fundamental decisions in order for us to better ourselves.
This leads onto the reading this week which discussed the idea of analytics how it is an important aspect that organisations acquire. Davenport (2006) explores how analytics allows organisations to identify and make crucial business decisions. I agree to this because analytics breaks down specific data in order to see trends that are occurring. Managers are then able to identify improvements and establish what is working successfully. I know for a fact that with the job that I am currently in, I am working a lot of marketing analytics and creating reports from the analytics that are being produced. Looking at analytics and reporting it to executives happens on a weekly basis and because it is done so frequently, it suggest that analytics cannot be underestimated and is an essential tool.
Without the reports on Mikes Bikes we wouldn't be able to see what we are doing successfully and what we are needing to improve on, and I think from this reading made me appreciate the reports a lot more. Therefore for my worries of us having such a SHV and making a loss, I am going to make use of the reports a lot more as prior to these few weeks, I just skimmed through reports as oppose to actually get a full understanding. Realising what each report meant might make a difference in the decisions I make for the next few rounds. Fingers crossed for the next few weeks.
Davenport, T. H. (2006). Competing on analytics. Harvard Business Review, 84(1), 98--107.