Proposal to Outsource Sales by ayd13567

VIEWS: 23 PAGES: 9

More Info
									                                                             Budget Proposal 2008
     Costs

 1   Warehouse                    Target Pricing Formula-
 2   Employees                                        Target Cost = Target Price - Target Profit
 3   Raw Materials                                    TC = 700 - (.4 x TC)
 4   Marketing                                        TC = $500

 1 Warehouse                      Price per Chip               Number of Chips            Total Expenditure
A Outsource to IBM                                                                                                    (order 10% more then projected sales)
       Data Board Chips for Phone $             150.00                      2,033,858      $        305,078,700.00
                                   Price per phone            Number of Phones            Total Expenditure
B Outsource to Avaya
    Conference Phone Unit          $            315.00                      2,033,858     $         640,665,270.00
 2 Employees                      Salary               x # of workers=                    Total Salary
A Translator Director              $        135,676.00                              1     $              135,676.00
        Managers                   $        105,000.00                             8      $              840,000.00
        Translators                $         62,862.00                           100      $            6,286,200.00
B Technical Engineers
        Director                   $        148,535.00                             1      $             148,535.00
        Managers                   $        125,335.00                             8      $           1,002,680.00
        Workers                    $        104,534.00                           100      $          10,453,400.00
C Sales People
        Director                   $        144,974.00                             1      $             144,974.00
        Manager                    $         98,168.00                             3      $             294,504.00
        Workers                    $         21,566.00                            15      $             323,490.00
D Customer Service People
        Call Center Director       $        113,897.00                             1      $             113,897.00
        Call Center Team Leader    $         54,660.00                             3      $             163,980.00
        Call Center (Inbound)      $         29,598.00                            10      $             295,980.00
     Total Employment Salary=                                                             $          20,203,316.00

 3 Marketing Budget               Monthly Expense               Yearly Expense
A            Print                $         50,000.00   $                    600,000.00
B            Radio                $         20,000.00   $                    240,000.00
C            Video                $        200,000.00   $                  2,400,000.00
D            Trade Shows          $        400,000.00   $                  4,800,000.00
     Total Maketing Budget        $        670,000.00   $                  8,040,000.00

 4 Raw Materials                  Price per Box                Number of Boxes        Total Expenditure
A       Packaging materials        $            10.00                       2,033,858 $          20,338,580.00
B Shipping/Transportation Costs    $            15.00                       2,033,858 $          30,507,870.00
                                                     Projected Sales 2008
Target Audience                                     #'s                              Fortune 500                                          Total
(All numbers extracted from www.bls.gov)                                             Avg Employee's per company        54,500                27,250,000

Information Sector                                   3,015,000                       Avg. Managers per company        1,090                   5,450,000
Financial Activities Sector                          8,232,000
Proffesional and Business services Sector           18,102,000
Total                                               29,349,000
Total est. Management Occupations                   5,892,900

Purchase Orders                             Per Company         Total Revenue
Min order                                                    25 $        35,000.00

Demand Forcast
Short Range (1 year)
                                            Avg. Units Per Company                  Total Revenue
     Units                                                    35              $700                $24,500
     Predicted Sales                        % of Market          Total Market       Total D.M.             Total Phones Purchaed Total Revenue
                                                             1%           5,282,749                 52,827               1,848,962 $   1,294,273,505.00
Mediem Range (3 Years)
                                            Avg. Units Per Company                  Total Revenue
     Units                                                    35              $700                $24,500
     Predicted Sales                        % of Market          Total Market       Total D.M.             Total Phones Purchaed Total Revenue
                                                             3%           5,282,749                158,482               5,546,886 $   3,882,820,515.00
Long Range (5 Years)
                                            Avg. Units Per Company                  Total Revenue
     Units                                                    35              $700                $24,500
     Predicted Sales                        % of Market          Total Market       Total D.M.             Total Phones Purchaed Total Revenue
                                                             5%           5,282,749                264,137               9,244,811 $   6,471,367,525.00
                                 Net Income
Total Costs
Phones             $       640,665,270.00
Data Boards        $       305,078,700.00
Shipping           $        30,507,870.00
Packaging Materials $       20,338,580.00
Salaries           $        20,203,316.00
Marketing          $         8,040,000.00
Total =            $     1,024,833,736.00


Net Income=        Total Revenue           Total Costs                  Total Profit
Year 1              $     1,294,273,505.00 $           1,024,833,736.00 $ 269,439,769.00
                       Best Companies to Work for 2008
                                 2007 Best to     Most common base
   Company          1000 rank   work for rank    salary $ (professional)


Valero Energy              16               22                  86,915.00

Goldman Sachs
Group                      24               36                 129,000.00

Procter & Gamble           25               68                  87,400.00

Microsoft                  49               50                 118,500.00
Cisco Systems              77               11                 123,021.00
American
Express                    79               74                  99,221.00
Publix Super
Markets                   107               57                 103,981.00
Capital One
Financial                 154               84                 100,393.00


Nike                      158               69                  39,128.00
Texas
Instruments               162               87                 109,223.00
AFLAC                     164               73                  57,363.00
Starbucks                 310               16                  43,598.00
Qualcomm                  317               14                  95,345.00
CDW                       342               82                  58,520.00
Yahoo                     357               44                 126,000.00
CarMax                    365               88                  59,385.00

Synovus Financial
Corp.                     514               98                  67,491.00

Standard Pacific          533               85                  69,400.00

EOG Resources             539               83                 145,750.00
First Horizon
National Corp.            575               46                  68,926.00
Genzyme                   620               43                  85,973.00
Granite
Construction              654               56                  67,497.00

A.G. Edwards              687               99                  71,548.00
Adobe Systems             727               31                 161,127.00
Intuit             776   33 N.A.

J.M. Smucker       818   39          51,713.00
Jones Lang
LaSalle            857   66        116,566.00

Paychex            952   70          91,774.00

Total Salary=                      2,720,936.00
Average Salaery=                      87,772.13
                   Largest Companies by Employee Size
                              500           2006
Rank        Company        Revenues       Number of
                             Rank         Employees

          United Parcel
        1 Service                 43         428,000

          Intl. Business
        2 Machines                15         355,766

        3 Citigroup                   8      332,000
          General
        4 Electric                    6      319,000
        5 AT&T                    27         302,770

        6 Kroger                  26         300,000

        7 Ford Motor                  7      283,000
          General
        8 Motors                      3      280,000
          Verizon
          Communicati
        9 ons                     13         242,000

       10 FedEx                   68         221,677
          Berkshire
       11 Hathaway                12         217,550
       18 Delphi                  83         171,400
       19 PepsiCo                 63         168,000
       20 Yum Brands             262         166,600
       21 HCA                     87         161,500
       22 Wells Fargo             41         158,000


       23 Lowe's                  45         157,349
          Darden
       24 Restaurants            404         157,300
          Hewlett-
       25 Packard                 14         156,000

       26 J.C. Penney            116         155,000
       27 Gap                    144         154,000

       28 Boeing                  28         154,000
          Marriott
       29 International          203         150,600
       30 Starbucks              310         145,800
             Starwood
             Hotels &
          31 Rsrts.               381    145,000
             Lockheed
          32 Martin               57     140,000
             Procter &
          33 Gamble               25     138,000
             CVS/Carema
          34 rk                   51     136,000
             Johnson
          35 Controls             67     136,000
          36 Walt Disney          64     133,000
             Electronic
             Data
          37 Systems              111    131,000
          38 Best Buy              72    128,000
             Emerson
          39 Electric             115    127,800
          40 TJX                  133    125,000
          41 Alcoa                 71    123,000
             Johnson &
          42 Johnson              36     122,200
             Northrop
          43 Grumman              73      122,200
Total        Employees=                 8,199,797
Average Employee's per Company=           190,693
                       Total Revenue      Year One (1%)
                                          Year Three (3%)
                                          Year Five (5%)
$7,000,000,000.00
$6,000,000,000.00
$5,000,000,000.00
$4,000,000,000.00
$3,000,000,000.00
$2,000,000,000.00
$1,000,000,000.00
              $-
                          Projected
                            Sales
    Year One (1%)     $1,294,273,505.00
    Year Three (3%)   $3,882,820,515.00
    Year Five (5%)    $6,471,367,525.00

								
To top