Managers analyze data to make business decisions and recommendations. This exercise gives you practice in calculating, analyzing, and recommending your observations to management.
You will compose a business memo addressed to your manager that includes both parts 1 & 2, below. To begin, download the following memo template: Walmart Memo Template
1. Calculate the margin percentages and the sell-thru percentages for the listed items in the following spreadsheet: Sample Inventory Performance Report
a. Assume the targeted margin percentage for the group of items in the report is 57.8%. Which items have a margin percentage that is on target, below target, or above target?
b. Assume the targeted sell-thru percentage on the group of items is 44.5%. Was the target achieved? If not, identify which items were most responsible for under-performance.
2. Select one of the scenarios below and present a persuasive case to management for its implementation:
a. Lower-than-targeted average margin percentage for the group of items. (Be sure to consider the sell-thru rate when considering what action to recommend.)
b. An item that may have a lower-than-targeted sell-thru percentage. (Be sure to consider the cost and retail price when considering what action to take.)
c. An item that is expected to stockout before the next order can be received.
Format Instructions: For this assignment, please use the memo template provided and include all required information. See the Supplemental Resources for assistance with your writing. Upload your completed spreadsheet with your memo.
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