ipl-logo

Harley Davidson Case Study Solution

813 Words4 Pages

Solution : Introduction: A budget is an estimation of particular commodity, quantity etc. It can be prepared for any number of days but generally it is prepared wither for a year or quarter... A budget may or may not become the actual outcome. A sales budget can be defined as a projection of how much a particular business or organization will be able to sell its product within a Year. It is always an anticipated. Budgets serve as a framework and help managers to estimate likely incomes and expenditures for specific periods so that they may determine the most effective and efficient strategies for profitability and asset expansion. Discussion: Sales are the most dominating factor for any organization. In any circumstances, sales will always …show more content…

Therefore, their anticipated budget will be $120000 million dollars. This in turn will affects the raw materials budget because they need to buy components which is sufficient to manufacture 3 million bikes and obviously a little more to be in safer position. Based on their sales budget, they would be allocating resources and making sure that there is no wastage of resources. In the same way, Sales budget will affect the other budget too. If the level of sales is high, Raw material Requirement will also be high which in turn will require more labor to process and manufacture this product. Direct labor which is a human resource will be recalculated on the basis of sales of 3 million bikes. It may happen to produce 1 million products, they require 50000 employees but to produce 3 million products they require 200000 employees and to be on safer size, 10% extra labor will be recruited which will give a total of 220000 employees. Therefore it is clearly understood that the company can prepare their Labor Requirement budget directly from the sales budget. The same concept will apply to overhead and capital expenditures because overheads are directly proportional to the production and if the sales are high, product will automatically are high. Similarly quantity requirement will lead to the requirement of machines. To produce 2 million bikes , 3000 machines were …show more content…

It also follows the same concept of analyzing and preparing the sales budget first because there CEO feels that it is the basis for doing any other things. He stated that all the other budgets are related to the sales budget. When we prepare a project report for obtaining Finance from the bank, the bankers analyzed the projected sales because it will determine the profitability. This company also follows the concept of preparing the sales budget and based on that other budgets are

Show More
Related
423 Words | 2 Pages

Child Care Center is a business. Not only you must know grow and development of the child, but you must also know how to keep the business financially viable. To do so, Tameka needs to know why the Effective financial management practices are important to run a child care center. Also, how to maintain a financial management system that includes budget, management of revenue and expenses. A)

Read More
1139 Words | 5 Pages

When an organization is struggling to sell a product, the organization should reposition it so that it is a deal that

Read More
1770 Words | 8 Pages

The budget will be positive for the growth of the organization. Hence, it is possible to accelerate the finalization of the budget plan for direct application to business, resulting in faster profits (VAIDYA,

Read More
1282 Words | 6 Pages

The efficiency of the capability management process helps the HONDA to create the right capacity of products for the clients in line with the market demand of the merchandise. It can help in lowering the development cost for the surplus products produced. Logistics and Inventory

Read More
611 Words | 3 Pages

An important factor he should focus on is the budget. In order for any organization to be successful, one must have a budget. The purpose of budgeting includes a forecast of income and expenditure, a tool for decision-making, and a means to monitor business performances. Budgeting is a critically important part of the business planning process. Business owners and managers need to be able to predict whether a business will

Read More
649 Words | 3 Pages

2.5. Marketing Budget The Marketing Budget fully depends on the pro forma financial statement. This budget has been allocated based on the projected revenue. The most effective strategies will be used in order to reach the marketing objective. At least 25-30 percent of the revenue will be spent on marketing since we are entering into a new market.

Read More
174 Words | 1 Pages

Employment is an issue in the city of Milwaukee for youth ages 15 to 24. This age group is plagued with issues that limit their ability to obtain and sustain employment. The most common issues being: lack of transportation, lack of either high school diplomas or college degrees, limited availability due to school scheduling, and lack of experience in the work force that would make them more employable. What these youth do have is a want and a need to generate income for themselves and often times for their families as well. DreamBikes primary purpose is to provide an opportunity where there commonly is not one.

Read More
416 Words | 2 Pages

It is understood that salespeople deal with these issues in multiple ways. They may choose to focus on monetary goals, suppress any reflection of ethicality, claim innocence through feigned unawareness, justify behavior as

Read More
603 Words | 3 Pages

The goods will be mass-produced, so the cost will be reduced. As the product becomes popular and overproduced, the manufacturer must unload the goods, even if it means lowering the price to the point where the public can afford

Read More
432 Words | 2 Pages

Mike is very creative when it comes to new strategies and techniques that will help sales grow without limits. With 14 years of experience working with sales, Mike has achieved a lot of his goals based on the skills and making sure he transfers his knowledge to others. Mike worked for financial institutions refinancing homes nationwide and working with banks and loan companies all over the US in companies like Ameriquest, Wells Fargo, American nationwide financial and others. For the past 7 years working with Geeks, Mike has given the best of his skills to others instructing and coaching on the sales practices and creating new projects to keep the company growing. • John Cardenas • Piero Vidal Piero Vidal-

Read More
902 Words | 4 Pages

Humans themselves are natural, yet the actions they take in an effort to understand the universe are not. They construct definitions, saying that if it is one thing then it is not another. Contrast and opposing forces are essential elements of the comprehension of reality. A knife is taken to the world, chopping and slicing the whole into parts. This process is completed in order to assist with the navigation of its complexities, in order to provide a sense of convenience.

Read More
452 Words | 2 Pages

Entitlement spending refers to the funds used to provide Social Security, Medicare, Medicaid, and other welfare programs (Heritage Foundation, 2010). Over 20% of federal spending is spent on these types of programs and this number is expected to grow if reforms are not made (Heritage Foundation, 2010). According to the Heritage Foundation (2010), the main reason why entitlement spending must be checked on is because of its uncontrollable costs. There are different types of budget formats, but the purpose of all budget formats is to measure and permit accountability for performance or lack of performance in government (Lynch & Smith, 2004). For this reason, budgets include specific objectives, income and expenses for specific departments or

Read More
1046 Words | 5 Pages

When a product is not sold directly after producing it to generate turnover, production only leads to unnecessary inventories and operational expenses. The Theory of constraints, is method of production Jonah suggested, which will help a company to generate money in a more efficient way. It is based on the theory that the output of different machines in a production process can differ from one another. The slowest machine will always determine the speed in which products can be produced and therefore also the speed in which sales can be realized, the turnover.

Read More
881 Words | 4 Pages

Moto cross and bike racing that we know today would most likely not be the same without the creation of the Harley XR-750. In 1970 the Harley Davidson XR-750 was brought out on the market for the flat track racers that desired more speed (Masker, 2015). It was not the most dependable bike when it first came out, it had through some modifying to become the bike that was known for winning numerous championships and jumping greyhound buses. This flat track bike was made by harley and it was built for racing around a flat track. It was built from 1970-1972 (Masker, 2015).

Read More
895 Words | 4 Pages

Abstract The Wilkerson Company started facing declination in profits due to the price cutting on their pumps. On the contrary, while the price pumps were decreasing to record numbers, the flow controllers, which controlled the rate and direction flow of chemicals, could increase its prices without significant loss or any competitive response. Wilkerson, his controller, and manufacturing manager developed an activity-based cost model (ABC) to better comprehend the various demands that each product line makes on the organization 's indirect and support resources. Exhibit 1 showed us our operating results, Exhibit 2 showed us our product profitability analysis, Exhibit 3 displayed our product data, and Exhibit 4 was a compilation of the monthly

Read More

More about Harley Davidson Case Study Solution

Open Document