3. Enterprise systems Decision making made easier! Enables a firm to forecast the future Predict how a potential decision will effect the company SAP, Enterprise Resource Planning (ERP) Helpful in many areas including… Manufacturing Pricing Accounting Marketing Inventory evaluations, etc.
4. Without ES… Managers might have a hard time assembling data they need for a comprehensive, overall picture of the organization’s operations. Customers could not track their orders Manufacturing could not easily communicate with finance to plan for new production
7. Financial assessment Financial performance how well management is yielding profits Investment in the firm’s future Willingness of management-project investment 4.22 at end of year 2, 9.79 in Q8
8. Financial Assessment cont. Financial risk Ability to manage debt 1.00 = no debt, no risk Our number: 0.65 Financial statement highlights Earnings per share: increased from $-35 in Quarter 6 to $-13 in Quarter 7 and to $-10 in Quarter 8. Operating cash flow: increased From $-1.3 million in Q7 to $-720 thousand in Q8. Current ratio: 0.9 in Q8
10. Financial Crystal Ball Other things equal Operating cash flow increased at a rate of 55% the last two quarters. Also, earnings per share increased 29% the last two quarters. Operating cash flow should however Will take 3 or more quarters (best case scenario) to be positive Earnings per share will require 3 more quarters (best case scenario) to be positive
11. What we learned No decision should be taken lightly. Don’t overspend. Address market trends in company strategy. Emil Boasson is the man!
Our group as a whole has experienced a roller coaster ride during this simulation. Having major highs in year one as well as lows in year two. Since our lows came in year two we have decided to scrap the company and take the gains and invest in other ventures.