You have $72$ hours to build a presentation $($expectation is this should take under $3$ hours total

to complete$)$ that:

$$ Explains the performance and drivers of profit change in a business.

$$ Outlines opportunities to improve profit.

Background

The business you work for is a safety apparel manufacturer $($SAM Co$.).$ The products are

made to be sold to trade people $($e$.$g$.$ construction workers, electricians, plumbers,

carpenters, painters, metal workers$).$ The apparel is sold at physical stores that SAM Co$.$

owns around Australia. SAM Co$.$ was doing quite well and were very profitable a few years

ago. However, profits have gone down significantly since then.

Question One

Below is some sales and profit data for the four product lines SAM Co$.$ manufactures. What

are the revenues and profit margins on the different product lines that are sold? How much

have absolute profits decreased overall? Which product lines are seeing a decline in

absolute profits? $($Table below refers to this question$)$

Question Two

Now let$$s look at work boots. A popular hardware retailer has approached SAM Co$.$ to enter

into a strategic partnership. Under the terms of the contract, SAM Co$.$ will not be able to sell

Work Boots in SAM Co$.$s own stores anymore. However, the hardware retailer will sell SAM

Co$.$ work boots under their famous brand name in their stores. They will sell the work boots

at $$150$ and promise that at least $2\mathrm{.}5$M work boots will be sold. The profit margins will still be

$20\%,$ but they will take $70\%$ of the profits. SAM Co$.$ keeps the rest of the profits.

Considering the financial data only, should SAM Co$.$ enter into this strategic partnership?

Assume that without the partnership, work boot profits will be the same as they are now

$($based on $$Now$$ table in Question One$).$

What other considerations, in addition to the financials, should be made before entering into this

arrangement?

Question Three

Historically, SAM Co$.$ has relied on a hard copy catalogue to market its products. On the

company$$s website, there is a PDF version of the catalogue, but analytics show this is

rarely accessed by customers. The CEO is concerned about the financial and

environmental feasibility of the catalogue going forward. She is also concerned that the

catalogue may not be the best way to reach potential customers. She has requested that

you propose an alternative solution for the marketing of the company$$s products.