This presentation is part of the Business Strategy module. In this assignment, our group is required to carry out a weekly business decisions on our Airline - SolAir based on the company's performance, the competitor's strategy and the industry environment.
8. Liquidity – Current Ratio
0.0
0.5
1.0
1.5
2.0
0 1 2 3 4 5 6
Ratio
Quarter
Current Ratio
Current Assets:
Current
Liabilities.
Range: 1.38:1 –
1.89:1 - Good
Increased in
Quarter 3 and 4
due to excess
cash.
9. Liquidity- Cash Balance
Always positive
Cash Balance –
No Bank
Overdrafts.
Excess Cash
used to repay
Short and Long-
Term Loans and
purchase CDs. $0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
0 1 2 3 4 5 6
Quarter
11. Short-Term Plans
Keep the fares at 40 cents.
We are starting to pay dividends.
Reduce both the Promotional and
Advertising Budget to $15000 and $12000.
We are neither hiring Sales Personnel nor
Maintenance Director because we cannot
afford the bonus rate and fears the
possibility of resigning, if higher bonus rates
are offered by competitors.
12. Long-Term Plans
Main goal: Continue to grow
Satisfy shareholders and customers:
- Fares at NORMAL rate;
- Costs being low;
- Returning quality for money paid.
Share price increase:
- Increased competitiveness;
- Repayment of debt;
- Increased reliability.
Be less risk averse:
- Adopt new approaches to doing
business and accept relevant
suggestions.
13. Conclusion
Positive outlook on current strategy
More in depth insight of the industry
Willing to devote time and effort in order to
grow.