Projections, Planning, and Goals

Instructions:

Review the content and use the spreadsheets (Inventory Turnover, Receipts, Stock Projections, Item Gross Margin), to answer each of the following questions. In your responses, make certain you comment on the following:

• What the reported data means
• What the relationship is among the key result areas
• What aspects of the business are performing well and which ones are not

Questions:

1. In the spreadsheet on page 1, the sales target and margin % goal in the example are $140,000 and 53.5% respectively. The planned sales and average margin % are $157,086.95 and 51.5% respectively. Explain the difference between the target goals and the planned goals. What stands out in the margin % column? How could the buyer plan to achieve or exceed the sales goal when the margin % is lower than planned?
2. Reference the spreadsheet at the top of page 4 and comment on the sell thru percentages for months 1, 2, and 3 from last year (LY). What is the buyer trying to project? What is sell thru percentage being used to calculate? Explain how this example is a “bottom up” unit plan.
3. In the spreadsheet at the bottom of page 4, you will notice that the buyer did not meet the sales target of $140,000 (found in the spreadsheet on page 1). On what elements should the buyer focus to make target? Comment on the markdowns that were taken. Do you agree or disagree? What changes or recommendations would you make to help the results be at or above target?
4. The amount of the projected dollars sold is totaled for each item in a column in the last spreadsheet on page 6 (Total $ Sold). These amounts are different from the amounts for each item in the Total Retail column,since the Total $ Sold column accounts for the markdowns. Did the merchant make the dollar sales plan of $140,000? What adjustments should the merchant make?
5. Identify the most profitable items in the last spreadsheet. Explain what you think contributed to the profitability of these items.

1. Compose your answers to questions a. through e. with one – two paragraphs per question (5 – 10 paragraphs total).
2. At least one outside research source is required for this assignment. Cite your sources according to APA guidelines.