Quinn Spinns Company

Quinn Spinns Company’s Strategy and Financial Performance

At Quinn Spinns Company, our goal for this year was to reduce waste, therefore we focused on repurchasing, buying back shares, and paying down debts. This strategy failed, so we decided to take a bigger risk by buying back shares and paying off debts. We made certain that the debt equity ratio was reduced to 0.21, a 1% decrease from the previous year. Our initial goal of attaining a big reduction in debt ratio was owing to the 25% reduction in long-term debt that we paid off. This failed to materialize since the company tax pay increased and therefore the profit after tax registered $1,306,385.

Strategies for the Final Year

Given that this was the final year, Quinn Spinns Company decided to take most aggressive strategy. There was need to make the most profits possible and therefore as a company, we spent as much as possible so as to ensure that the company registered great success in its last year. Budget was increased heavily and therefore more investments was directed to repurchasing the shares and increasing cost per share.

Marketing Decisions

This year, the company decided to increased prices of its products so as to compete favorably with other firms such as Firm4. The company also used a large amount in advertising as we understood how much beneficial do advertisements bring to a business. Much as there was cash to spent, caution was taken so that there was no wastage in the spending since too much money definitely going to be redundant.

Financial Decisions

The Company has long-term liabilities of $1,100,000 and we decided to repay them fully this year. The main target is to decrease company’s debt to equity ratio to the lowest mark possible. We also decided to repurchase $370,000 worth of shares so as to increase the shareholder value. The repurchasing of shares decision will help the company to have more publicly owned shares which will consequently increase scarcity and demand while making the share price to raise. We also decided to pay $1.22 of dividends for every share since this is our last year. This was agreed as it is a way of appreciating the company’s shareholders for the returns in their investment more so when we take into consideration the financial success the company has had so far.

Results and Future Plans

The results expected was increase in shareholder value, increase in total product awareness for all our products which consequently means increase in amount of bike sale and fall in debt to equity ratio after paying off long-term liabilities. The reports used for this case was the financial report so as to generate the desired information while at the same time gauging the market values of products and the games involved in business with the aim of increasing the profits as much as possible. The results were gauged and the proper budgeting was analyzed using the financial calculator in the website so as to achieve the desired results and make more decision. The results helped to mimic the real life situation and generate reports that will be used in the next Rollover and also for future references.

Introduction to Mikes Bikes Simulator

Mikes Bikes is a simulator that helps to introduce learners to business concept notably how strategies are formed, decision-making and teamwork. It allows learners to combine the business knowledge theories they have and put them into experimental. This will enable them to fix and streamline their business knowledge and their plans for investments before applying them in real life. They analyze, formulate strategies and put into use the business decisions they have on a given company hence making them be well informed on the moves and possible outcomes of their consequences of actions in the business world.