Although the chart titled "Past Financial Performance" shows that we've had healthy growth in sales, it also indicates declining gross margin and declining profits.The more detailed numbers in Table 2.2 include other indicators of some concern: As can be seen in the chart, the gross margin percentage has been declining steadily, and nventory turnover is getting steadily worse as well.
Neither owns more than 15%, but both are active participants in management decisions.
AMT has been caught in the vise grip of margin squeezes that have affected computer resellers worldwide.
Mary Bellis, known by some as Calm X, was an experimental artist, film director and producer, video game content creator, and freelance writer for some 18 years.
She specialized in writing about inventors and inventions, in particular. The following business plan for the fictional firm of "Acme Management Technology" (AMT) is an example of what a completed business plan might look like.
In service and support, we offer a range of walk-in or depot service, maintenance contracts, and on-site guarantees.
We haven't had much success in selling service contracts. (add relevant information) The only way we can hope to differentiate effectively is to brand the vision of the company as a trusted information technology ally to our clients.Unfortunately, we cannot sell the products at a higher price simply because we offer services; the market has shown that it will not support that concept.We must also sell the service and charge for it separately.AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect.Smart business people who aren't computer hobbyists need to find quality vendors of reliable hardware, software, service, and support and they need to use these quality vendors as they use their other professional service suppliers—as trusted allies. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor.We must remain on top of emerging technologies because this is our bread and butter.For networking, we need to provide better knowledge of cross-platform technologies.This example is provided as part of the instructions and detailed descriptions included in the Components of a Business Plan.By focusing on its strengths, its key customers, and the company's underlying core values, Acme Management Technology will increase sales to more than million in three years, while also improving the gross margin on sales and cash management and working capital.We are also starting to see that same trend with software...(add relevant information) To hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton.We need to continue to make sure our volume gives us negotiating strength.