Report of the Interpretive Simulations

AllSmile Annual Report Years One trio - Bradyn Carson, Clarissa McMickle, Micheal Sullivan, Peiying Li Perfect Smile Just a Brush by Mission Statement AllSmiles mission is to demolitionure quality tooth agoe globally at a fair and honest price, providing customer service with a smile. Motto Perfect Smile Just a Brush forth - Table of Contents To our Sh beholdersPage 2 potency Future Decisions Page 2 Challenges and Decisions in Year Three Page 3 gross sales and lettuce Trends Page 4 Industry ComparisonPage 5 Income StatementPage 6 TO OUR SHAREHOLDERS Last social class was a big year we delivered strong results, launched fantastic new harvest-feasts and services, and positioned AllSmile for an marvellous future. For fiscal year, we also maintained strong cost discipline resulting in cash flow from operations of $104. 7 million, an accession in maker sales by 23 percent from the prior year. At the reference of our first year we built a million dollar bring in brazil . We look forward to all the opport social unities this externaliset get out provide for our company such(prenominal) as much lower cost of goods manufactured.We delivered these results by providing new products that help the families in the communities. We look forward to all the bulky opportunities in the future that our products will bring to Latin American individuals. Potential Future Decisions AllSmile has made an impact in the industry over the past three decimal points due to our ability to compete in terms of pricing, advertising, production, and distribution. We plan on increasing our matchedness in the Latin American grocery by expanding our brands products to better serve our product subscribe and also by looking into new markets to encipher.When deciding what new products to put through (if any), we will extensively research demographics, some(prenominal) social and scotch, and potential hire for these products. It is very important for us to choose products that produce high margins. We will accomplish this by analyzing our costs associated with producing the products and determining the demand for the product. As outlying(prenominal) as pricing, AllSmile was able to compete with the large brands during the first three results. We represent on continuing this, as rise as focusing on competing better against local and regional brands in order to increase our be market share in Brazil.As the market matures in Brazil, we may drive to enter a new market in order to increase revenues and maintain our strong evolution. Some important characteristics we will analyze are Population, GDP and GDP per capita, inflation, poverty, labor costs, shipping costs, tariffs, as well as other political, social, and economic factors. Since completion of our production plant after diaphragm one, our costs of goods manufactured has declined each year. This cost reduction will lay off us to allocate more funds to areas that grow our revenue such as a dvertising, promotion, and a larger sales force. Challenges and Decisions in Year ThreeOur sort chose Brazil as the market to enter. We considered the national creation, GPD, per capita income and other factors. Toothpaste is an ordinary and redundant commodity. It is ordinary, because you can easily find toothpaste everywhere, every household can present it. It is special, because no matter a men, women, old people or children both the workers and peasants, or drivers, or white-collar workers, and even national leaders no matter the richest, the poor, all of them need to use it, it is a necessity product. Brazils population is the largest in the choice of hexad countries, and their GDP is the highest, GDP / Capita is low.However, due to the universality of the toothpaste, toothpaste has low prices. It will not be a burden on the economy of the Brazilian family. Therefore, we have chosen Brazil as enter the market. Before the first sales year, we established in Brazil a native plant, which has a capacity of 100 million units. According to Brazil basic social characteristics, and several other major competitors product, we headstrong our product types covered by the child toothpaste for the kids, ruddy toothpaste for the elder, white toothpaste for young people, economic toothpaste for family.Our team pricing standards are to ensure that company earnings, guaranteed price competitive enough in the market, and guaranteed consumers can afford the price. The end of the first year, we had 30% of the products left, in view of the traditional market accounted for 40. 5% of the general toothpaste market, we decided to increase three sales people into traditional sales impart in the next year. Due to the cheat oning of whole market parsimoniousness toothpaste are large, we add advertising investment. At the same time, the poor sell of childrens toothpaste prompted us to reduce 5 million budgets on its advertising fee.According to the results of marketing, a nd sales of other companies, appropriate to improve the economy, white, healthy toothpaste price and their allowance, try to fix the sales. The end of the second year, we left 16% of the products, the market response is good, so we only slightly increased the economy toothpaste prices, reduce the allowance of white, healthy toothpaste. Given the improved performance, the other company has a large human body of sales people, we added two sales people to handed-down channel, ten to the hypermarket channel, louvre to the wholesale channel, trying to expand the market.On the other hand, due to the increase of 17 sales people, the input is too high, so we decided to reduce the overall investment in advertising in the next year. Sales and pelf Trends AllSmile has started off strong in period one and has maintained that impulse throughout the one- threesome period, with expectations of continuing the sales growth. At the end of period one AllSmile unit sales totaled 71. 8 million wi th a 6. 5% share. Our manufacturer sales totaled 72. 4 million with a 6. 2% share. rough-cut margins for the first period were 9. 5 million with a -24. 4 million last contribution.Even with negative contributions AllSmile momentum was able to restrain us to a positive net contribution by the end of the third period. In the second period, AllSmile gained 12. 1 million in unit sales totaling 83. 9 million with a 7. 5 share. shaper sales gained 17. 8 million totaling 90. 2 million with a 7. 3 share. tax income margins also gained 26. 4 million ending with 35. 9 million, which was a growth of 279. 5%. Net contribution also improved with only -3. 0 million compared to first periods -24. 4 million. Sales growth continued in the third period as well with even higher numbers.The third period, AllSmile unit sales had a 13. 0% growth totaling 94. 7 million. Manufacturer sales had a 16. 1% growth totaling at 104. 7 million. coarse margins growth was 28. 9% ending at 46. 3 million. Finall y net contribution finally ended positive with 10. 0 million. Unit Sales Manufacturer Sales Gross Margins Net Contributions By the end of period three, AllSmile earning trends showed that the Hypermarket channel we entered totaled 85. 2% of sales compared to the Traditional and Wholesale channels. Traditional channels totaled 8. % and Wholesales totaled 6. 0%. Industry Comparison AllSmile has six main competitors in Brazil Britesmile, abstemious+White, Dentacare, Eversmile, Local 1 and regional 1. At the end of period one AllSmile ranked higher than Clean+White and Eversmile in market shares sales in Brazil. By the third period, AllSmile was competing head to head with Regionals, and Local competitors in market shares. Period 3 Period 3 Throughout the industry overall, AllSmile is competing with Regional completion in all countries. AllSmile has gross margins of 44. 2%, compared to Regional completion that had 46. 6%.Even though Regional gross margins are slightly greater than ours , it is a great accomplishment for our company to surpass the other completion in our industry. AllSmile is well on our way to being the most competitive industry in the near future. Income Statement For Periods ended 1, 2 and 3 (Values in Millions of Dollars) tax revenue Period 3 Period 2 Period 1 join Revenue $104. 70 $90. 20 $72. 40 Mfr. Allowance 9. 6 9. 1 6. 5 Cost of Goods Sold 47. 8 44. 3 42. 3 exaltation and Tariffs 0. 9 0. 8 14. 1 Total COGS 58. 4 54. 2 62. Gross Margin $46. 3 $35. 9 $9. 50 outlays Promotion Expense 7. 6 7. 5 5 Advertising Expense 10. 3 14. 4 13. 1 Sales Expense 1. 7 0. 7 0. 5 Administrative Expense 4 3. 7 2. 7 Total Expense 23. 6 26. 3 21. 3 Contribution after Marketing $22. 7 $9. 60 ($11. 80) hardened Costs 2. 4 2. 3 2. 2 Plant Deprecation 10. 3 10. 3 10. 3 Total Fixed Costs 12. 7 12. 6 12. 5 Net Income $10. 00 ($3. 00) ($24. 40)