Answer

Business Report

Introduction

Smooth business operations require understanding best business management practices. Different kinds of business data must be well understood and proper records kept for tracking of the business operations (Mazzarol, 2014). Technological tools and techniques have sufficed which add value and facilitate computation of data helping business people make sense out of the data (Glaub, Frese, Fischer & Hoppe, 2015). This report is based on a case study and analyses of data, presents a discussion and recommends appropriate measures for the future business operations.

The case in question concerns Porpoise Swim School, a ‘learn to swim’ centre owned by Regina Sharky. The business owner has provided data which require in-depth analysis and subsequently, a recommendation for the smooth business operation in the fourth term.

Analysis

Microsoft Excel spread sheet is one of the analytic tools this analysis has adopted to help make sense and provide direction for Regina’s business. Based on the information provided, the number of teachers training infants and children are 7, except Regina who also trains but doubles as the owner of the school. The receptionist is also part of the employees paid by the Centre.  In business operations, Regina is entitled to the pay as the other trainers apart from the profits or losses the school will incur, however she is not on the payroll list. Differentiating the business entity as a different entity from individual or personal issues is critical in this case. Therefore, the total number of employees on the pay list is 8, but each of them is entitled to different level of salary per hour.

Total number of students per teacher/types of swimming for every trainer

Excel spread sheet showing total pay for trainers and receptionist

The total amount of money that the trainers and the receptionist are entitled at the end of the ten weeks training session is $1850. The total payment by every child less the discount for those that pay early before the opening of the school is herein. This total less the total amount paid to the staff and receptionist for operations gives the net profit of the business.

The total amount paid by all the children in the third term amounted to $64,260.00, while the total discount for those who paid early before commencement of the classes is $5,087.25. The net amount after deduction of the discount is $59,172.75

Again salaries paid are deducted from $59,172.75. The total amount of profit that the owner is entitled is $57,322.75. The profits accrued from Regina’s business are substantial. However, the total net profits are subject to any other operational expenses incurred during the running of the school. These expenses may range from maintenance of the swimming facilities, purchase of the stationery and other miscellaneous expenses. Nevertheless, these expenses are not expected to be higher to the extent of affecting profits accrued. However, in some instances operation costs may be substantially higher reducing the profitability of the business.  Failure to disclose such costs is a mistake that can definitely lead to miscalculation and misrepresentation of the real state of the business.

Discuss of results

The analysis has provided insights on the general performance of the business. From the analysis, Regina can interrogate her business performance and make appropriate decision. The change of tact seems to have bore fruits for Regina.  On realizing the business was behind budget, she had to act swiftly and quickly to ensure that the situation is rectified. By deciding to employ one more trained teacher and resolving to pay her a little higher because of her skills and experience seems to have worked. The new trainer helped to improve the level of confidence of most of his clients which resulted in increased number of children. Furthermore, introducing new classes on Saturday morning enabled or provided an opportunity to some of the clients to join the class.  Regina was wise in offering discounted prices to clients who paid the fees earlier before opening the school. This could have as well contributed to the increase in enrollment as most of the client would want to enjoy such discounts.

The performance of the business as illustrated by the net profits after deduction of the salaries of employees is a clear indication that indeed her business has bounced back and is doing well.  The challenge is now on sustaining such kind of profit in the foreseeable future. Regina would have to continue embracing and adopting new techniques and strategies of doing her business so that she can continue to enjoy such kinds of profits.

Therefore, in the fourth term, Regina has to structure here timetable factoring many aspects that will enable her continue receiving more client to even expand her business. Regina should maintain the timetable at 10 weeks. The sessions, however, could be increased by one, as a discount to her clients. She should also motivate her trainers by increasing their salary with $2 per session and at the same time provide further training to her trainers.  This will build confidence among clients who will consider taking their children to the school and not to Regina’s competitors. Furthermore, the training sessions should be made more flexible to fit many more clients that are not usually available during the normal training sessions as doing this will allow many potential customers to enroll for the classes.

Some of the factors that may impact on the results of the data is the expansion of the business and failure by some of the clients to pay by the fourth week after start of the training session.  Increasing the business would require more resources for improving amenities and catering other related costs. Similarly, in case a substantial number of clients fail to pay the fees by the set timeliness, this will impact on the profitability of the business.

Conclusion

Proper management of business records is important as it provides a basis of evaluating the performance of the business. Key decisions that pertains the business can easily be interrogated if the books of accounts and other records are in place (Mares, 2016). Regina’s business operates smoothly because of the proper management of records. This gives her an opportunity to review her strategies and decisions concerning investments. The accrued profits, is as a result of change off strategy after the previous one seemed not work.

Recommendations

Based on the analysis of data, it is recommended that Regina recognizes that the business and herself are different entity. She needs to put into consideration the fact that apart from being the owner, she is also an employee and these should not be mixed. Secondly, I recommend diversification and flexibility of doing business. She can diversify the business from the profits she accrues to caution the parent company from any unexpected losses in the future. Furthermore, I recommend segmentation of records in different specific classifications to allow easier analysis and to facilitate working, even though the software available has the capacity to do so.