Brief Template

This Brief template forms part of Section 2 of the Project Portfolio for BSBCRT611 Apply critical
thinking for complex problem solving.

Worlducation Solution Brief

Author: Date: 12.12.2022 Department: Finance dep.

Issue being addressed:

Since COVID-19 and the closure of the factory due to government restrictions, of the 2000 tablets
due to be shipped but only 500 were completed on schedule which cause the rising tension
between China and Hong Kong has added to the uncertainty.
In 2019, Worlducaton generated a revenue of $35 million, a net profit of $7 million and net cash-
flow of $4 million. They budgeted revenue of $45 million for 2020, net profit of $9 million and net
cash-flow of $5 million. However, following the unprecedented growth in demand and disruption to
the supply chain, management now projects 2020 revenue will amount to $55 million, net profit $5
million and net cash-flow of negative $3 million. The revenue is expected to grow but the profit
margins will decline. The decrease in profit was a result of the disruption to the manufacturing
process and the associated solutions implemented by Management.

Proposed solution:
It is suggested to chosen Discount for customers who pay in advance. This solution is the one that
gave the greatest coverage to the solution of the main problems, since it was the option that did not
involve an increase in prices that could be a disruptive strategy for customers.
This solution will help to increase sales, and customer satisfaction. It does not have any risk related
to deteriorating relationship with suppliers and this decision will be approved by shareholders.
This solution does not contradict any current legislation or any company policies. If this decision is
approved by the board of directors and the process is carried out in accordance with the corporate
act, it is completely viable.

Advantages:

 Improved liquidity

 Good relationships with customers

 Good relationship with suppliers

 Boost of sales

 Increase company/brand awareness

 Strengthen company’s competitiveness

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BSBCRT611 Apply critical thinking for complex problem solving
Risks:

 Demand from customers might not be strong enough to keep company’s liquidity in sustainable
level.

 Not enough stock to cover growing demand due to discounted price of sales deals.

Resources:

 Promotion campaign

 Sale strategy

 Budget

 Financial analysis to determine what amount of money is needed to cease the damages that
come with the current situation.

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BSBCRT611 Apply critical thinking for complex problem solving