To: RGV Inc

From: Jesus Bautista

CC: Dr. Maricela G. Silva
Date: 9/30/2019
Re: Revenue Assessment

Thank you for the opportunity to assess your sales data in order to provide recommendations for
increasing your sales. The analysis and recommendations below are based on the data you provided,
which covers a period from May 2004 through June 2006. The analysis below is based on this data
alone. Therefore, our recommendations should be tempered by your knowledge of business realities
and your market. Please let us know if we can answer any questions concerning the analysis or the
recommendations provided.

ANALYSIS - 1 Category Sold by Month

Analysis

Based on the sum of revenue minus discount, beverages, dairy, and confections categories
account for over $500,000 of sales for RGV, Inc., as it is during the spring months revenue
increases. Condiments, produce and grains/cereals categories in 2005 account for $50,000 of
sales. The sales for both produce and grains/cereals produced less than $100,000 from 2004
through 2006.

Total revenue (All)

Order Date (All)

Sum of Revenue minus discount Column Labels

Row Labels 2004 2005 2006 Grand Total
Beverages $38,670.80 $105,954.36 $123,243.03 $267,868.18
Condiments $16,402.95 $51,221.83 $38,422.31 $106,047.09
Confections $23,812.90 $82,686.75 $60,857.57 $167,357.23
Dairy Products $30,027.79 $116,495.45 $87,984.05 $234,507.29
Grains/Cereals $8,522.32 $55,021.08 $32,201.19 $95,744.59
Meat/Poultry $21,836.86 $75,184.75 $66,000.75 $163,022.36
Produce $10,830.96 $47,321.69 $41,831.93 $99,984.58
Seafood $16,320.73 $64,122.55 $50,818.46 $131,261.74
Grand Total $166,425.30 $598,008.45 $501,359.29 $1,265,793.04

1
 Category Sold by Month

Total

Recommendation

A review of sales for products in each category should be conducted quarterly and items not
generating revenue should be replaced. A recommended replacement on any product that does
not generate more than $6,000 in revenue minus discount per year. Considering the data
analyzed was for a sales period of twenty-two months, any product with a sum of revenue minus
discount less than $11,000 should be considered for replacement, which is 39 of the 77 products
currently sold by RGV, Inc. This process will help introduce new products to the company’s
inventory and prevent loss due to waste or expiring goods.

ANALYSIS 2 - Sales Category by Year

Analysis

Based on the sum of revenue minus discount, beverages were the highest category sold at
$40,000.00 in 2004 and grains/cereal was only at $5,000.00. Again, beverages increased in 2005
and 2006, however dairy products and meat/poultry were a slight decline in RGV, Inc.
Condiments, grains/cereals and seafood had a quick rise in 2005 but feel short in 2006.

 Page 2
 CATEGORY SOLD BY YEAR
$140,000.00
$120,000.00
$100,000.00
$80,000.00
$60,000.00
$40,000.00
$20,000.00 Total

$- Total
Meat/Poultry

Meat/Poultry

Meat/Poultry
Seafood

Seafood

Seafood
Beverages

Grains/Cereals

Produce

Beverages

Grains/Cereals

Produce

Beverages

Grains/Cereals

Produce
Confections

Confections

Confections
Condiments

Dairy Products

Condiments

Dairy Products

Condiments

Dairy Products
2004 2005 2006

Recommendation

It is recommended that all items listed in the least selling products list be discontinued and/or
replaced. The warehousing of these items would cost more than the revenue generated by them.
By replacing these items, RGV, Inc. will be able to introduce new products to its customers that
will generate revenue and prevent loss due to expired goods. Another recommendation is that
the sales by products be monitored yearly to eliminate products not generating revenue.

ANALYSIS 3 - SALES BY COUNTRY

Analysis

United States has kept its sales increasingly high, however Germany has decrease within a year
and Austria has managed to display a high growth in 2006. As for the lowest revenue produced
Argentina, Norway and Poland had zero sales in the 2004 quarter. Argentina has improved
during the 2005 and 2006 quarters, yet Norway and Poland have had a slight increase in both
quarters.

 Page 3
 Total revenue (All)

Sum of Revenue minus discount Column Labels

Row Labels 2004 2005 2006 Grand Total
Argentina $1,804.10 $6,315.00 $8,119.10
Austria $19,170.47 $52,665.05 $56,168.33 $128,003.84
Belgium $6,306.70 $11,406.48 $16,111.68 $33,824.86
Brazil $9,908.64 $46,517.27 $50,499.87 $106,925.78
Canada $5,140.88 $33,529.86 $11,525.55 $50,196.29
Denmark $1,186.80 $22,331.05 $9,143.17 $32,661.02
Finland $3,115.76 $12,461.41 $3,232.88 $18,810.05
France $17,372.76 $38,514.02 $25,471.54 $81,358.32
Germany $33,416.95 $106,011.79 $90,855.90 $230,284.63
Ireland $6,443.16 $23,134.63 $20,402.12 $49,979.91
Italy $979.94 $6,440.02 $8,350.20 $15,770.16
Mexico $4,687.90 $14,349.28 $4,544.90 $23,582.08
Norway $1,758.40 $3,976.75 $5,735.15
Poland $1,267.00 $2,264.95 $3,531.95
Portugal $1,589.42 $7,191.24 $2,691.70 $11,472.36
Spain $2,976.20 $3,951.55 $11,055.45 $17,983.20
Sweden $4,607.63 $28,524.04 $21,363.48 $54,495.14
Switzerland $4,164.72 $18,380.82 $9,147.12 $31,692.66
UK $6,282.28 $24,203.46 $28,485.57 $58,971.31
USA $31,571.93 $118,376.01 $95,636.67 $245,584.61
Venezuela $7,503.18 $25,190.98 $24,116.47 $56,810.63
Grand Total $166,425.30 $598,008.45 $501,359.29 $1,265,793.04

Total Revenue by Country

$140,000.00

$120,000.00

$100,000.00

$80,000.00
2004
$60,000.00
2005
$40,000.00
2006
$20,000.00

$0.00

 Page 4
 Recommendation

We can observe that most of the country’s total revenues are below $20,000 making it difficult
to succeed. It is recommended that the increased countries, such as USA, should assist in
monitoring sales and determine if sales will increase or RGV Inc. would have to suspend these
agencies. Further, it appears that RGV, Inc. imports the goods it sells from Europe, which
increases the wholesale cost. With the cost of transporting goods increasing, it is recommended
to locate a distribution hub in Europe to cut transportation costs. This would cut the cost of
RGV, Inc. importing goods from Europe to sell, and then exporting them back customers in
Europe. The distribution hub in the United States can distribute to Canada and South America,
while the distribution hub in Europe can distribute to European countries. The savings in
shipping could also result in savings for customers and provide more room for discounts.

ANALYSIS 4 - TOTAL REVENUE AFTER DISCOUNT

Analysis

Based on the sum of revenue minus discount for the data provided, the countries generating the
highest revenue is USA, Germany and Austria. The countries generating the least amounts are
Argentina, Norway and Poland. Portugal is also a country with sales after discounts in the lowest
amounts.

$245,584.61
REVENUE AFTER DISCOUNT
$230,284.63
$128,003.84

$106,925.78

$81,358.32

$58,971.31

$56,810.63
$54,495.14
$50,196.29

$49,979.91
$33,824.86

$32,661.02

$31,692.66
$23,582.08
$18,810.05

$17,983.20
$15,770.16

$11,472.36
$8,119.10

$5,735.15

$3,531.95

Recommendation

Performed by the data provided, by increasing marketing in those countries that have a total
revenue minus discount below $25,000. Yet, depending on the marketing costs for those
countries, this may cause the company to lose money instead of increase sales. As such, RGV,
Inc. can perform monthly monitoring of sales in areas that are necessary to determine if marketing
efforts are effectively increasing sales. If not, suspension of sales in countries with a total revenue
minus discount below $12,000. Further, while discounts are great incentives for new customers

 Page 5
 and to help increase sales, customers with total purchases below $25,000 should receive minimal
discounts

ANALYSIS 5 - Sales Reps Revenue Minus Discount

Analysis

Based on the data provided Margaret has been the highest performed in the year 2004 and 2005
as she also had the grand total as shown in the data available for the whole year (4 quarters) and
had the highest increase in 2005. Also, in 2005 Janet was the second highest but in 2006 she
became the top performer as Andrew was behind. Unfortunately, Steven was the least in 2004,
Anne was the lowest in 2005 and 2006.

Sum of Revenue
minus discount Column Labels
Row Labels 2004 2005 2006 Grand Total
Andrew $15,719.38 $68,941.58 $81,876.80 $166,537.76
Anne $9,728.52 $24,566.39 $43,013.16 $77,308.07
Janet $15,465.16 $98,101.30 $89,246.39 $202,812.84
Laura $18,261.70 $56,085.71 $52,514.87 $126,862.28
Margaret $43,845.92 $121,590.67 $67,454.26 $232,890.85
Michael $12,428.81 $42,194.75 $19,289.57 $73,913.13
Nancy $27,390.57 $86,181.57 $78,535.47 $192,107.60
Robert $15,232.16 $59,599.20 $49,736.88 $124,568.24
Steven $8,353.10 $40,747.29 $19,691.90 $68,792.28
Grand Total $166,425.30 $598,008.45 $501,359.29 $1,265,793.04
$140,000.00

$120,000.00
$121,590.67

$100,000.00
$98,101.30
$80,000.00 $89,246.39
$86,181.57 2004
$81,876.80
$78,535.47
2005
$60,000.00 $68,941.58 $67,454.26
$59,599.20 2006
$56,085.71
$52,514.87 $49,736.88
$40,000.00
$43,013.16 $43,845.92 $42,194.75 $40,747.29

$20,000.00 $24,566.39 $27,390.57

$19,289.57 $19,691.90
$15,719.38 $9,728.52 $15,465.16 $18,261.70 $12,428.81 $15,232.16 $8,353.10
$0.00
Andrew Anne Janet Laura Margaret Michael Nancy Robert Steven

 Page 6
 Recommendation

Based on the available information, the management needs to dig deeper as to why the
performance of Margaret has fallen behind. Anne who had the worst sales in the year 2005 has
shown improvement in the Sales figures for the year 2006.The performance improvement plan
that was put in place for Anne needs to be customized for Michael & Steven as the sales figures
for these individuals are falling. Anne should assist with monthly sales reviews to support them
and increase revenue and the organization should push Michael & Steven from sales declining.
If these methods are not helpful the agencies recommendation is to alleviate or replace the reps.

ANALYSIS 6 - Sales Reps Total Revenue

Analysis

Based on the data provided for the years 2004 through 2006 three of the nine sales
representatives, Peacock, Levering and Davolio are generating over of total revenue. Buchanan,
Dodsworth and Suyama are combining for less than $80,000 of the company’s total revenue.
Dodsworth has made an improvement in her sales during 2005 & 2006. Buchanan and Suyama
had a partial increase but have made losses in 2006.

Sum of Total revenue Years

Last Name 2004 2005 2006 Grand Total

Buchanan $8,737.60 $45,822.65 $21,007.50 $75,567.75

Callahan $19,077.00 $59,132.82 $55,091.21 $133,301.03

Davolio $29,323.20 $90,922.13 $81,898.38 $202,143.71

Dodsworth $11,199.70 $27,802.05 $43,962.25 $82,964.00

Fuller $16,425.50 $73,533.05 $87,790.71 $177,749.26

King $18,104.80 $65,761.14 $57,430.05 $141,295.99

Peacock $46,674.00 $130,379.25 $73,134.20 $250,187.45

Leverling $16,473.00 $101,006.41 $95,571.89 $213,051.30

Suyama $13,122.70 $45,140.49 $19,934.91 $78,198.10

Grand Total $179,137.50 $639,499.99 $535,821.10 $1,354,458.59

 Page 7
 $140,000.00

$120,000.00

$100,000.00

2004
$80,000.00
2005
2006
$60,000.00

$40,000.00

$20,000.00

$0.00

Recommendation

Based on the available information, the management needs to dig deeper as to why the
performance of Peacock has fallen behind in 2006 from a great year in 2005. Dodsworth who had
the worst sales in the year 2005 has shown improvement in the sales figures for the year 2006.The
performance improvement plan that was put in place for Dodsworth needs to be customized for
Suyama & Buchanan as the sales figures for these individuals are falling.

SELF ASSESSMENT
From completing the Excel project, I learned various analytical techniques and be a critical
thinker, including creating pivot tables and charts, sorting data, and filtering data. I have
generated several tables and graphs, using various techniques and information to complete my
analysis. I did some additional analysis which are shown in the excel. I have utilized critical
thinking skills to determine which fields to sort or filter and which fields to apply to the different
areas of a pivot table to get the information I needed from this intense project. I learned various
formatting techniques to design tables, pie charts and graphs, and to format number values in
Excel.

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