FINANCIAL ANALYSIS

Decision Support Systems



Decision Support Systems

Introduction

Reading books is a very important thing, which one should include in his or her habits. Reading makes the person to broaden his thinking capacity, so it is very useful for his or her future life. This activity on a wide scale is being promoted by Sakura Comics. They are leading UK publishers who translate Japanese Comics and Novels. They provide premium to the authors, translate the books in English language, and then sell it in United Kingdom. They have been in the business for more than a decade but in the last 5 years there, sales have grown exceptionally well (Fodor & Roubens, 1994, pp. 31). They have occupied the markets of young professionals and teenagers who have love for Comics and Novels. Sakura Comics (SC) has really promoted the Japanese art in the United Kingdom, as they are promoting the Japanese books in the form of Novels and “Monga” Comics.

In every business, there is a time when company plans to think of expansion. This is because of the new possibilities it is seeing in the market. Companies can go for Horizontal and Vertical integration in the form of expansion (Power, 2002, pp. 12). Either they can expand into completely new business type or they can expand the present type. Sakura Comics is planning to expand its operations horizontally by planning to launch new foreign language books in English language; the books will be from German and French language. Thus, they are trying to expand by bringing in comics from completely new culture if compared to that of Japanese culture. The target audience of these books will be both the United Kingdom and the other countries of European Union. Therefore, the company will need additional financing to overcome the cost related to the expansion. For this, we are going to analyze the sales over several months and present the finding to different lenders so that they can be convinced.

Discussion

Present Sales of the company for different Titles

The Sakura Comics has been performing exceptionally well over the half decade. This is due to the strong sales followed by low cost of production of the books. The above graph is showing the sales of the company over one year that is from November 2011 to October 2011. The Title E and F have been doing exceptionally well with their monthly sales reaching £ 49,581 and £ 48134 respectively. These are the highest average sales amongst the ten titles, the lowest average sales are shown by Title J of £ 12719. Thus, these high and low average of different titles represents that the company has strong sales position. The Graph below represents the Average Monthly sales of different Titles.



Thus, the average monthly revenue from each of the title is well above the ten thousand mark. This is a good sign for the company since it is showing the efficiency of the company. This is also showing that the company is maintaining its portfolio in ...