Etron Essay

Introduction

Making profit is central to every business and the whole development of the business depends also on the profit. If the business is making profit, it can expand which will result in a multiplier economic effect benefiting scores of people in the society. Every businessman and entrepreneur plan their business and aim for more profit and expansion of the business. In case a business loses its customers or profit; that gets closed and in term many people will be effected negatively. Market share, profit, brand image, customer loyalty and the total sale and revenue are some of the factors showing the performance and progress of a business. Before buying the shares or extending a loan the stakeholders are always looking at the financial

I also kept another industry in the same field and its performance in mind to compare and evaluate the reason of this down trend financial losses. I compared the HR performance with the outcome of financial and accounting department which gave us a clear picture of the ETCO position. According to the general business procedures there might be many causes leading to this poor performance of ETCO but I focused much on the given report data. The given report data is a primary research and personally collected by the consultant which is valid and trusted. The given data gives a clear picture of the defects, decline and production, quitting job by the workers and the number of the absentees from the workplace. I focused much on the internal factors than the

It shows that in 2014, the ROCE was 9% against the capital employed of 10.5 million (GBP). The ROCE increased to 9.5% against the capital employed of 11 million in 2016. It shows that the business is making profit against the capital employed. The net margin also increased from 35% in 2014 to 37% in 2016 it means that the sale and finance department are doing well compared to the capital employed and the gross profit margin. The problem starts in the total revenue which declined from 3.2 million in 2014 to 1.6 million in 2016. (Laudon and Traver, 2013, n.p).

Year 2014-2015 11-10.5=0.5 increase

Year 2015-2016 11-11=0 increase

However, the operational and HR (human resource) data shows some negative trends. The HR data shows that the average number of the production employees decreased from 50 to 45 in 2016. It means that the total output will simultaneously decrease compared to the total number of the employees. The total annual output decreased from 780,000 units in 2014 to 666,000 units in 2016. The decline in output means fall in the total revenue. (FIGURE 1+2)

Year 2014-2015 780,000-675,000=105,000