Mdelic Wasatch Outerwear Case

1376 Words6 Pages

The purpose of this assignment is to give a close attention to the financial perspective of the Mdelic Wasatch Outerwear as we examine past and current financial data and evaluate company's performance and financial position. In order to evaluate a company, we need to go beyond the numbers mentioned in financial statements. Investors, managers, creditors and others need to analyze various aspects of financial statements so they can invest, manage and do business more effectively with the particular company. Analyzing the company’s financial statement helps in evaluating performance of the company that further helps in making smart decisions. Also, to accurately analyze the performance of the company, we need to compare its performance …show more content…

Mdelic Wasatch Outerwear’s net sales increased significantly from January to July. This is due to increase of the 1000 and 1200 product unit sales by almost 12%. According to this report, we can tell that item 1000 (Xtex Rain Jacket) has the highest percent of sales 11.90% with sales of 1,521 units and item 1200 (Merino Wool Top) has similar distribution 11.66% with sales of 1,132 units. These sale increases were partially offset by lower 1300, 1400, 1500 and 1600 average selling prices, which sales were up by almost 5%, as well as higher 2000 and 2100 average selling prices which sales were up by almost 10%. So, we can conclude that Mdelic Wasatch Outerwear appears to have a good strategy and is focusing on new growth opportunities. Some concerns may be the limited financial resources to pursue their strategy. The continued investment in new products and execution in key focus areas is intended to help strengthen competitive position as they enter and expand into new market segments. The market segments change rapidly and Mdelic Wasatch Outerwear need to adapt to this environment. However, changes in product demand may harm Mdelic Wasatch Outerwear’s financial results and they are hard to …show more content…

Sales projections are incredibly difficult to predict for a new company but, considering the above analysis of the financial statements, we can tell that Mdelic Wasatch Outerwear should improve their current financial position but it is still in a favorable position and we can expect positive results. I also think that we need to keep improvinging and I have a few suggestions: 1) Explore new markets We should start exploring new markets for our business and take the time to plan how we can expand our existing market. We can look for ways to improve our marketing, whether by winning easy publicity or preparing direct mails. 2) Have a Limited-Time Sale or Promotion Discounting our products may seem antithetical to increasing sales, but even offering a slight discount can make your products and services more attractive to a client. 3) Use Social Media to Your

Open Document