Reviewing the simulation a number of factors stand out. Gross revenues increased each quarter along with gross profits. Analyzing just that data would presume that Global Business Solutions was doing fine. A product was brought to market and did sell earning the company money and market share. However, a closer look would find my excess capacity costs at upwards of 40% of the operating expenses. This expense cannot be sustained and must be lowered. Also, the cost of carrying unsold inventory of approximately $25,000 must be addressed. Although the company didn’t lose a sale to lack of inventory the cost of carrying inventory far out weighed the potential loss if we didn’t fill a customers order on time. There are many marketing tools that could be incorporated to pacify a customer. In the real world analysis of the budgets and pro-forma performance must be accomplished daily. During this simulation we experienced quarterly data changes unlike the real world where changes occur daily. Due to this fact, any adjustments made were in the rears ultimately costing the company money. Although, the company ended with a substantial cash balance and a small profit, sustainability, is crucial when looking forward at the broader picture. Who, what, where and how should be the rallying cry going forward. In this highly competitive marketplace the company must decide who is it’s ultimate customer, what it wants to be, a big, intermediate or small company and what it wants to produce, where it wants to sell and lastly how is this product going to manufactured profitably. This must be accomplished while maintaining a strong cash flow, a solid balance sheet along with a market plan that maintains and progressively increases market share.

1.) Reviewing the budgets and pro-forma
The utilization of budgets and pro-forma are a must if a manager is to maintain positive