First case analysis presentation in ENT 101 Business Foundations at Suffolk University Grade: B+

1. Alison Barnard Case
BY:
ERIN BOURGEOIS
LAURA REALES
MINYING ZHOU
PEILIN SHI
ZIXI ZHANG

2. DESIRED OUTCOME
Our team’s desired outcome for Alison Barnard’s upscale
boutique is to improve management strategies in order to
have a better business plan and increase profits after the
first year.
WHY?
• Poor management skill
• Properly trained employees
• Effective business plan
• Better store policy
How?
• Security equipment
• Inventory system
• Outsourcing for Manager
• Internship

3. WHERE IS THE MONEY COMING FROM?
 Mistake in the Income Statement!!
 Management Payroll Taxes and Staff Payroll taxes are NOT 6.2%
(according to FICA) of the Staff Salaries and Benefits &
Management Salaries
 Original:
 Management Payroll Tax  $15,439 & Staff Payroll Taxes  $7,488
 Management Salaries  $51,996 & Staff Salaries and Benefits  $24,960
 What it should be:
 Management Payroll Tax  $3,223.75 & Staff Payroll Taxes  $1,547.52
Total amount of money claimed from mistake  $18,155.73

4. IMPACT ON SALES AND PROFITS
 With the mistake on the Income Statement, the profit is already
impacted
 Original Profit- $14,844
 Profit after mistake- $38,547.80
 Security system  Control in damage and theft expenses
 Manager  Create business plan
 Improve return policy
 Internship  lowers the cost of Staff Salaries & Benefits

5. HOW MUCH IS IT GOING TO COST?
Out of the total amount of money claimed from mistake ($18,155.73).
 2 Digital cameras with LCD  $450
 NAS (Network-Attached Storage) equipment 1TB of memory  $168
 Installment  $340
 Security pillar, tags, and tags remover  $3,000
 Programmer  $500 for 5 hours
 Part time Manager for 2 months  After taxes  $1,500
TOTAL  $5,958