RefertoCaseStudyC -Businessperformancereview

Using the information and the template provided in the businessperformance assessment in the Case Study, undertake a capabilityassessmentforAzureKitchens & Bathrooms.

Ensurethatyouprovideakeyfortheassessment.

Azure kitchens and bathrooms is a nationwide organisation that specialises in bathroom and kitchenrefits. The organisations chief executors have recruited an external company to conduct a businessreviewoftheorganisation.

Theresultsareasfollows:

Azure Kitchens & BathroomBusinessperformancereview

Basedontheproceduresdescribed, hereareyourcompany'sresults:

Overall	64
Liquidity	60
Profitsandprofitmargins	40
Borrowing	62
Sales	74

Strengths

The greatest strength is the sales department. The company is continuously able to increase its saleswhilstreducingdebtandborrowing.Thishassubsequently producedastrongbalance sheetthatis

representative of the company's current financial condition. Products are of good quality and have fairprofitmargins butcouldbehealthier.

Weaknesses

The biggest weakness is your HR and payroll costs. They are disproportionate to the industry and, inmy professional opinion, unnecessary. These costs are the reason you scored so lowly in the profitsand profits margin assessment. Your company's profit margins are misleading as they do not includedirect labour. Net profit margins give a more accurate and realistic portrayal of the actual situation.Unfortunately,yours arenotgood,andovertimethiswill impactthe balancesheet.

Suggestions

Monitor payroll and HR costs closely and seek to cut costs where possible. This may mean releasingexcess staff through attrition or retirement incentives. Profit-sharing plans can be effective ways ofboostingproductivity oncestaffinglevels are lower.

Template:

\f