BUSINESS SURVIVAL FINANCIAL SCENARIOS

Company Products & Services


BUSINESS SURVIVAL FINANCIAL SCENARIOS

CONTENTS

Page:

      BUSINESS SURVIVAL FINANCIAL SCENARIOS FOR THE INDUSTRY

1

~ .... HISTORIC FINANCIAL DATA

2

~ .... Historic Balance Sheet

3

~ ~ ...... Historic Costs & Margins

4

~ ~ ........ Historic Financial Ratios & Margins

5

~ ~ .......... Historic Operational Ratios & Margins

6

~ .... Financial forecast notes

7

~ .... BUSINESS SURVIVAL FINANCIAL SCENARIO FORECASTS

8

~ .... Base Forecast : Best Market Scenario Balance Sheet Forecast

9

~ ...... Base Forecast : Best Market Scenario Operational Costs Forecast

10

~ ........ Base Forecast : Best Market Scenario Financial Ratios

11

~ .......... Base Forecast : Best Market Scenario Operational Margins

12

~ .... Base Forecast : Median Market Scenario Balance Sheet Forecast

13

~ ...... Base Forecast : Median Market Scenario Operational Costs Forecast

14

~ ........ Base Forecast : Median Market Scenario Financial Ratios

15

~ .......... Base Forecast : Median Market Scenario Operational Margins

16

~ .... Base Forecast : Worst Market Scenario Balance Sheet Forecast

17

~ ...... Base Forecast : Worst Market Scenario Operational Costs Forecast

18

~ ........ Base Forecast : Worst Market Scenario Financial Ratios

19

~ .......... Base Forecast : Worst Market Scenario Operational Margins

20

~ .... Variable Marketing Cost Objectives Balance Sheet Forecast

21

~ ...... Variable Marketing Cost Objectives Operational Costs Forecast

22

~ ........ Variable Marketing Cost Objectives Financial Ratios

23

~ .......... Variable Marketing Cost Objectives Operational Margins

24

~ .... Selling Cost Objectives Balance Sheet Forecast

25

~ ...... Selling Cost Objectives Operational Costs Forecast

26

~ ........ Selling Cost Objectives Financial Ratios

27

~ .......... Selling Cost Objectives Operational Margins

28

~ .... Advertising Cost Objectives Balance Sheet Forecast

29

~ ...... Advertising Cost Objectives Operational Costs Forecast

30

~ ........ Advertising Cost Objectives Financial Ratios

31

~ .......... Advertising Cost Objectives Operational Margins

32

~ .... Promotional & Pricing Cost Objectives Balance Sheet Forecast

33

~ ...... Promotional & Pricing Cost Objectives Operational Costs Forecast

34

~ ........ Promotional & Pricing Cost Objectives Financial Ratios

35

~ .......... Promotional & Pricing Cost Objectives Operational Margins

36

~ .... Product Price Cutting Balance Sheet Forecast

37

~ ...... Product Price Cutting Operational Costs Forecast

38

~ ........ Product Price Cutting Financial Ratios

39

~ .......... Product Price Cutting Operational Margins

40

~ .... Sales Personnel + Staff Improvement Balance Sheet Forecast

41

~ ...... Sales Personnel + Staff Improvement Operational Costs Forecast

42

~ ........ Sales Personnel + Staff Improvement Financial Ratios

43

~ .......... Sales Personnel + Staff Improvement Operational Margins

44

~ .... Profit Impact From Materials Cost Reduction Balance Sheet Forecast

45

~ ...... Profit Impact From Materials Cost Reduction Operational Costs Forecast

46

~ ........ Profit Impact From Materials Cost Reduction Financial Ratios

47

~ .......... Profit Impact From Materials Cost Reduction Operational Margins

48

~ .... Profit Impact From Payroll Cost Reduction Balance Sheet Forecast

49

~ ...... Profit Impact From Payroll Cost Reduction Operational Costs Forecast

50

~ ........ Profit Impact From Payroll Cost Reduction Financial Ratios

51

~ .......... Profit Impact From Payroll Cost Reduction Operational Margins

52

~ .... Profit Impact From Process Cost Reduction Balance Sheet Forecast

53

~ ...... Profit Impact From Process Cost Reduction Operational Costs Forecast

54

~ ........ Profit Impact From Process Cost Reduction Financial Ratios

55

~ .......... Profit Impact From Process Cost Reduction Operational Margins

56

~ .... Profit Impact From Distribution Cost Reduction Balance Sheet Forecast

57

~ ...... Profit Impact From Distribution Cost Reduction Operational Costs Forecast

58

~ ........ Profit Impact From Distribution Cost Reduction Financial Ratios

59

~ .......... Profit Impact From Distribution Cost Reduction Operational Margins

60

~ .... Profit Impact From Customer Handling Cost Reduction Balance Sheet Forecast

61

~ ...... Profit Impact From Customer Handling Cost Reduction Operational Costs Forecast

62

~ ........ Profit Impact From Customer Handling Cost Reduction Financial Ratios

63

~ .......... Profit Impact From Customer Handling Cost Reduction Operational Margins

64

~ .... Trading Credit Extension & Margin Reduction Scenarios Balance Sheet Forecast

65

~ ...... Trading Credit Extension & Margin Reduction Scenarios Operational Costs Forecast

66

~ ........ Trading Credit Extension & Margin Reduction Scenarios Financial Ratios

67

~ .......... Trading Credit Extension & Margin Reduction Scenarios Operational Margins

69

~ .... Financial data definitions

INDEX


HISTORIC FINANCIAL DATA

BUSINESS SURVIVAL FINANCIAL SCENARIOS ISSUES

F_H - FIN_HIST.HTM   HISTORIC FINANCIAL DATA

 Financial Definitions


BUSINESS SURVIVAL FINANCIAL SCENARIOS

FINANCIAL DATA FORECAST

BUSINESS SURVIVAL FINANCIAL SCENARIO BALANCE SHEET FORECASTS


The BUSINESS SURVIVAL FINANCIAL SCENARIOS BALANCE SHEET FORECASTS section gives a series of Balance Sheet Forecasts for the industry using a number of assumptions relating to the business survival decisions available to the management of the industry.

The Balance sheet forecast given shows the effects of business survival options and improvements which Management is likely to recommend:


BUSINESS SURVIVAL FINANCIAL SCENARIOS

- Base Forecast : Best Market Scenario
- Base Forecast : Median Market Scenario
- Base Forecast : Worst Market Scenario

- Variable Marketing Cost Objectives
- Selling Cost Objectives
- Advertising Cost Objectives
- Promotional & Pricing Cost Objectives
- Product Price Cutting
- Sales Personnel + Staff Improvement

- Profit Impact From Materials Cost Reduction
- Profit Impact From Payroll Cost Reduction
- Profit Impact From Process Cost Reduction
- Profit Impact From Distribution Cost Reduction
- Profit Impact From Customer Handling Cost Reduction

Trading Credit Extension & Margin Reduction Scenarios


Managers in the industry will, in both the short-term and the long-term, have vital decisions to make regarding the business survival options and improvements, margins and profitability and these decisions will need to be evaluated in light of the customers, markets, competitors, products, industry and internal factors. The scenarios given isolate a number of the most important factors and provide balance sheet forecasts for each of the scenarios.

The data provides a short and medium term forecast covering the next 6 years for each of the Forecast Financial and Operational items. The Financial and Operational Data sections show each of the items listed below in terms of forecast data and covers a period of the next 6 years.


Base Forecast : Best Market Scenario

F0B|     BEST  FORECAST : Financials

G0B|    BEST  FORECAST : Margins & Ratios

Base Forecast : Median Market Scenario

F0M|     MEDIAN  FORECAST : Financials

G0M|     MEDIAN  FORECAST : Margins & Ratios

Base Forecast : Worst Market Scenario

F0W|     WORST  FORECAST : Financials

G0W|     WORST  FORECAST : Margins & Ratios

Variable Marketing Cost Objectives

F26|     VARIABLE MARKETING COST OBJECTIVES : Financials

G26|     VARIABLE MARKETING COST OBJECTIVES : Margins & Ratios

Selling Cost Objectives

F30|     SELLING COST OBJECTIVES : Financials

G30|     SELLING COST OBJECTIVES : Margins & Ratios

Advertising Cost Objectives

F31|     ADVERTISING COST OBJECTIVES : Financials

G31|     ADVERTISING COST OBJECTIVES : Margins & Ratios

Promotional & Pricing Cost Objectives

F32|     PROMOTIONAL & PRICING COST OBJECTIVES : Financials

G32|     PROMOTIONAL & PRICING COST OBJECTIVES : Margins & Ratios

Product Price Cutting

F38|     LONG-TERM PRODUCT PRICE CUTTING : Financials

G38|     LONG-TERM PRODUCT PRICE CUTTING : Margins & Ratios

Sales Personnel + Staff Improvement

F48|     SALES PERSONNEL + STAFF IMPROVEMENT : Financials

G48|     SALES PERSONNEL + STAFF IMPROVEMENT : Margins & Ratios

Profit Impact From Materials Cost Reduction

F61|     PROFIT IMPACT FROM MATERIALS COST REDUCTION : Financials

G61|     PROFIT IMPACT FROM MATERIALS COST REDUCTION : Margins & Ratios

Profit Impact From Payroll Cost Reduction

F62|     PROFIT IMPACT FROM PAYROLL COST REDUCTION : Financials

G62|     PROFIT IMPACT FROM PAYROLL COST REDUCTION : Margins & Ratios

Profit Impact From Process Cost Reduction

F63|     PROFIT IMPACT FROM PROCESS COST REDUCTION : Financials

G63|     PROFIT IMPACT FROM PROCESS COST REDUCTION : Margins & Ratios

Profit Impact From Distribution Cost Reduction

F64|     PROFIT IMPACT FROM DISTRIBUTION COST REDUCTION : Financials

G64|     PROFIT IMPACT FROM DISTRIBUTION COST REDUCTION : Margins & Ratios

Profit Impact From Customer Handling Cost Reduction

F65|     PROFIT IMPACT FROM CUSTOMER HANDLING COST REDUCTION : Financials

G65|     PROFIT IMPACT FROM CUSTOMER HANDLING COST REDUCTION : Margins & Ratios

Trading Credit Extension & Margin Reduction Scenarios

F84|     TRADING CREDIT EXTENSION & MARGIN REDUCTION SCENARIOS : Financials

G84 |     TRADING CREDIT EXTENSION & MARGIN REDUCTION SCENARIOS : Margins & Ratios

FIN_DEFI.HTM FINANCIAL DEFINITIONS


INDEX

Balance Sheet Advertising Cost Objectives, 28
Balance Sheet Base Forecast : Best Market Scenario, 8
Balance Sheet Base Forecast : Median Market Scenario, 12
Balance Sheet Base Forecast : Worst Market Scenario, 16
Balance Sheet Historic, 2
Balance Sheet Product Price Cutting, 36
Balance Sheet Profit Impact From Customer Handling, 60
Balance Sheet Profit Impact From Distribution Cost, 56
Balance Sheet Profit Impact From Materials Cost Re, 44
Balance Sheet Profit Impact From Payroll Cost Reduction, 48
Balance Sheet Profit Impact From Process Cost Reduction, 52
Balance Sheet Promotional & Pricing Cost Objectives, 32
Balance Sheet Sales Personnel + Staff Improvement, 40
Balance Sheet Selling Cost Objectives, 24
Balance Sheet Trading Credit Extension & Margin Reduction, 64
Balance Sheet Variable Marketing Cost Objectives, 20
BUSINESS SURVIVAL FINANCIAL SCENARIOS FORECASTS, 7

Costs & Margins Historic, 3

Financial data definitions, 69
Financial forecast notes, 6
Financial Ratios Advertising Cost Objectives, 30
Financial Ratios Base Forecast : Best Market Scenario, 10
Financial Ratios Base Forecast : Median Market Scenario, 14
Financial Ratios Base Forecast : Worst Market Scenario, 18
Financial Ratios Product Price Cutting, 38
Financial Ratios Profit Impact From Customer Handling, 62
Financial Ratios Profit Impact From Distribution Costs, 58
Financial Ratios Profit Impact From Materials Costs, 46
Financial Ratios Profit Impact From Payroll Cost Reduction, 50
Financial Ratios Profit Impact From Process Cost Reduction, 54
Financial Ratios Promotional & Pricing Cost Objectives, 34
Financial Ratios Sales Personnel + Staff Improvements, 42
Financial Ratios Selling Cost Objectives, 26
Financial Ratios Trading Credit Extension & Margins, 66
Financial Ratios Variable Marketing Cost Objective, 22
Financial Ratios & Margins Historic, 4

HISTORIC FINANCIAL DATA, 1

Operational Costs Advertising Cost Objectives, 29
Operational Costs Base Forecast : Best Market Scenario, 9
Operational Costs Base Forecast : Median Market Scenario, 13
Operational Costs Base Forecast : Worst Market Scenario, 17
Operational Costs Product Price Cutting, 37
Operational Costs Profit Impact From Customer Handling, 61
Operational Costs Profit Impact From Distribution, 57
Operational Costs Profit Impact From Materials Costs, 45
Operational Costs Profit Impact From Payroll Costs, 49
Operational Costs Profit Impact From Process Costs, 53
Operational Costs Promotional & Pricing Cost Objectives, 33
Operational Costs Sales Personnel + Staff Improvements, 41
Operational Costs Selling Cost Objectives, 25
Operational Costs Trading Credit Extension & Margins, 65
Operational Costs Variable Marketing Cost Objective, 21
Operational Margins Advertising Cost Objectives, 31
Operational Margins Base Forecast : Best Market Scenario, 11
Operational Margins Base Forecast : Median Market, 15
Operational Margins Base Forecast : Worst Market, 19
Operational Margins Product Price Cutting, 39
Operational Margins Profit Impact From Customer Handling, 63
Operational Margins Profit Impact From Distribution Costs, 59
Operational Margins Profit Impact From Materials Costs, 47
Operational Margins Profit Impact From Payroll Costs, 51
Operational Margins Profit Impact From Process Costs, 55
Operational Margins Promotional & Pricing Cost Objectives, 35
Operational Margins Sales Personnel + Staff Improvements, 43
Operational Margins Selling Cost Objectives, 27
Operational Margins Trading Credit Extension & Margins, 67
Operational Margins Variable Marketing Cost Objectives, 23
Operational Ratios & Margins Historic, 5


CONTENTS

Advertising Cost Objectives
Base Forecast : Best Market Scenario
Base Forecast : Median Market Scenario
Base Forecast : Worst Market Scenario
BUSINESS SURVIVAL FINANCIAL SCENARIOS FORECASTS
HISTORIC FINANCIAL DATA
Product Price Cutting
Profit Impact From Customer Handling Cost Reduction
Profit Impact From Distribution Cost Reduction
Profit Impact From Materials Cost Reduction
Profit Impact From Payroll Cost Reduction
Profit Impact From Process Cost Reduction
Promotional & Pricing Cost Objectives
Sales Personnel + Staff Improvement
Selling Cost Objectives
Trading Credit Extension & Margin Reduction Scenarios


HISTORIC FINANCIAL DATA
BUSINESS SURVIVAL FINANCIAL SCENARIOS FORECASTS
Base Forecast : Best Market Scenario
Base Forecast : Median Market Scenario
Base Forecast : Worst Market Scenario
Variable Marketing Cost Objectives
Selling Cost Objectives
Advertising Cost Objectives
Promotional & Pricing Cost Objectives
Product Price Cutting
Sales Personnel + Staff Improvement
Profit Impact From Materials Cost Reduction
Profit Impact From Payroll Cost Reduction
Profit Impact From Process Cost Reduction
Profit Impact From Distribution Cost Reduction
Profit Impact From Customer Handling Cost Reduction
Trading Credit Extension & Margin Reduction Scenarios