de-brief

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Description

In the year 2019, our company was on profitability path, and the strategic plan was under control. However, the next few years have been considered important for the company because according to the strategic plan, the company had had to develop at least two new products by the year 2017.  The assessment of the current situation shows that market performance of the new product has been quite poor and this has dragged down the total contribution margin.  For the next few years, the major concerns will be how to reasonably allocate the limited resources in order to reduce the variable cost and maximize the profit to meet the obligations under the strategic plan.  There are some important issues that are likely to affect this year’s sale, which could also affect next year’s profitability. These issues include:

  1. Contribution margin
  2. Capacity and plant
  • Low-end product
  1. New product
  2. Stock price
  3. Bond market
  • Competitor

These factors are likely to affect the bottom-line operation of the company as discussed below.