• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The average price of our trainers was 40, sports jerseys 30 and 20. With a discount rate of 10% and a span of 7 years, the projected cash flows are worth 2,649,758

Extracts from this document...

Introduction

BACKGROUND REGARDING THE GENARAL PRICE OF GOODS SOLD IN THE LONDON AREA In 2012 we started up a sports retail company that was originally founded with the aim of targeting the huge number of athletes, sports fans and tourists that were expected during the course of the 2012 Olympic Games in London. We expected to make large sums of profits in 2012 during our first year of sales. In fact we were bitterly disappointed with the way business went compared to the high expectations that we had for the first year. The even bigger surprise was the rate at which the business grew over the next few years as a result of the exposure from the 2012 Olympic Games. ...read more.

Middle

Depending on the cost of items, performance on previous sales and of course the selling price of our competitors had led us to the decision as to what our selling price was going to be. The average price of our trainers was �40, sports jerseys �30 and �20. With a discount rate of 10% and a span of 7 years, the projected cash flows are worth �2,649,758 today which is greater than the initial �500,000 paid. The resulting NPV of the project is �2,149,758, which indicates that pursuing the project may be and optimal decition. RECOMMENDATIONS AND CONCLUSION As was mentioned in the general background, are company targeted sports fans and tourists that were expected during the course of the 2012 Olympic Games in London. ...read more.

Conclusion

The gamble played off and sales profits were enormous, significantly more than previous years. Profits in the last year 2018 were even greater than 2017 with total sales of �4.6 million. The rate at which the business is growing is very fast and steady, and at this rate Olympic sports Asseccories Ltd will be one of the most successful and recognised sports Retail Company in the London area. They are already so successful, but for even greater success and profits I would recommend that the shop being in such a busy location should be opened for longer hours and also for at least 6 hours on a Sunday. I would also suggest that 2 or 3 more sports items should be introduced to the sales line for 2019 and the company will surely make bigger profits. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Business Project

    Integrating Any Mac platform with IP based networks and assets are relatively simple. * It will simplify everyday management's tasks for the British school. You'll spend less time helping students deal with crashes and Mac OS X can even automate daily tasks like backup and software updates.

  2. New business plan

    During economic booming time, more and more consumers will go travelling and they will spend more on foods. For local customers, the good economics will give them more disposable income to spend on eating out. Therefore our restaurant depends on the economic condition of both New Zealand and target tourist group country such as China.

  1. Free essay

    Media Planning for BMW ActiveHybrid 7. The BMW ActiveHybrid 7 was introduced in 2010. ...

    37500 (+11%) 2 38714 27441 53781 (+38%) 29353 (6.9%) 3 49796 43195 60121 (+20%) 38618 (-11%) 4 55621 41794 66638 (+19%) 41952 (+0.3%) 5 58209 38766 71462 (+22%) 42093 (+8.5%) 6 56943 39062 62845 (+10%) 37832 (-4%) 7 54293 35196 59556 (-6%)

  2. Organisational Behaviour (in short called as OB) is concerned with the study of the ...

    2.2 Explain how the organisational theory underpins the practice of management: Organizational theory and management theory is used in many aspects of a working business. Many people strive to adhere to the theory to help them become better at their jobs or more successful in life, although this may lead

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work