2. Consistency of Jonathan
comment with Shelley’s idea
The club had an investment in the rodeo
This means that club had committed money or
capital to an endeavor with the expectation of
obtaining an additional income or profit
3. A fundraiser that would continue to get better each
year
• The comment of Jonathan Edmunds is consistent with
Shelley’s idea that the club should have the fundraiser
that would continue to get better each year
Give back to the Community
• The comment of Jonathan is not consistent with
Shelley’s idea because Jonathan comment aimed at
increasing the wealth of the club rather than giving back
to the community.
4. Provide the club a presence in the community
• This Shelley’s idea is consistent with the comment
of Jonathan because making investment in the
rodeo means that the club did not loss its money
instead it works on its behalf in rodeo.
5. Steps to make rodeo profitable
• Assessing the profitability of Rodeo
• Analyzing individual components
• Examining options
• Making a plan
• Setting targets and follow-up
6. References
Horngren, C. (2014). Accounting Analysis . Toronto: Pearson Canada.
Jones, M. (2013). Accounting and business Management. Chichester:
Wiley.
Editor's Notes
The club had an investment in the rodeo
This means that club had committed money or capital to an endeavor with the expectation of obtaining an additional income or profit. It also means that the club has put the money to rodeo to work for it. Making an investment in any organization means that one is expecting high returns, Investment in rodeo implies that the club wants to increase its ability to afford want the club desires.
A fundraiser that would continue to get better each year
The comment of Jonathan Edmunds is consistent with Shelley’s idea that the club should have the fundraiser that would continue to get better each year because the main of the idea is to ensure that the club is able to sustain its operations and be able to have strong financial stability that may be used to finance critical operation of the club.
Give back to the Community
The comment of Jonathan is not consistent with Shelley’s idea because Jonathan comment aimed at increasing the wealth of the club rather than giving back to the community. Giving back to the community means that the club should sacrifice its resources for the sake of the community. For that reason investment rodeo means that the club expects high amount of returns from the resources invested in the organization.
Provide the club a presence in the community
This Shelley’s idea is consistent with the comment of Jonathan because making investment in the rodeo means that the club did not loss its money instead it works on its behalf in rodeo. This implies that the club will have a presence in the community because it will have substantial support from rodeo because the investment in rodeo will help in ensuring that the financial support of the club is enhanced.
Steps to make Rodeo profitable
Assessing the profitability of rodeo
This is important because it enables one to know the areas that the organization has high potential to obtain large amount of profit. Also by assessing the profitability of the organization, one is able to identify gross profit margin and operating margin of rodeo and compared them other organization. The act of bench marking helps in identifying opportunities for improvement.
Analyzing individual components
This involves reviewing of the profitability of various areas of the rodeo such products or services, business lines, individual jobs and geographic locations and clients. The act is important because it helps one to ensure that the winner and the loser is identified in advance for the purpose of decision making process.
Examining options
Examining options involve considering the action to take to improve profits. The options include reducing costs, increasing prices or eliminating unprofitable products and clients. To achieve the objective of increasing the amount of profit, thorough assessment for each alternative including creating scenarios for the possible outcomes should be done.
Making a plan
This involves the selection of best options for improving the profitability of rodeo and devising appropriate work plan for implanting the decisions made.
Setting targets and follow-up
This entails establishment of a schedule with realistic targets. The process also involves rigorous quarterly follow up to make sure the plan is on track or implement corrective actions.
