Task 2.1 Interpret Information in the Ways to Increase Income Report
Case Study 1

 

Interpret the Ways to Increase Income Report

You are working as a floral designer in Evergrande Flowers, a shop that sells cut flowers and ornamental plants.

 

The flower shop is preparing for its plans for next year. As part of this, your manager asks all staff to review her report on how to increase the shop’s income. The report will be the basis of the shop for expansion of products and service next year.

 

To complete the following task, you are required to review the Ways to Increase Income Report below and answer the questions that follow.

 

 

Ways to Increase Income

 

January 25, 20XX

 

Prepared by:

Elise Gargett

Manager, Evergrande Flowers

 

 

Section 1: Introduction

 

For more than two years, the main income of Evergrande Flowers are the flower products and delivery services given to our various customers. As customer demand grows, the business needs to find new ways to increase their profit to cover the cost of having a larger shop.

 

Purpose of the Report

 

The author aims to suggest new ways in which the shop can increase its income. It shows the results of a survey conducted by the author on how the shop can make more money.

 

Overview of the Report

 

The results of the survey show that the shop should focus more on specific floral needs of customers, such as weddings, birthdays, anniversaries, and funerals. The shop should also conduct in-home consultations, where flower designers can create custom flower arrangements in the customer’s home.

 

Section 2: Findings

 

In 20XX, Evergrande Flowers had an income of $300,000. The income was from:

Flowers sold in the shop
Ornamental plants
Additional delivery service fees
 

The pie chart below shows the distribution of the shop’s sources of income:

 

Q2a.png

 

Products/Services to Increase Shop’s Income

 

To increase its income, Evergrande Flowers should have more products and services. This will give customers more options to choose from. It would then help the shop reach a wider audience as there are more products and services that cater to specific people.

 

The author conducted a survey on the shop’s 15 staff members to identify what products or services the shop can use to increase its income. All of the shop’s staff members participated in the survey, and the results are shown below.

 

Q2b.png

 

The breakdown is outlined below:

7 staff members say that the shop should focus more on special floral needs such as pomanders, garland, and wreath
4 staff members say that the shop should conduct in-house consultations
3 staff members say that the shop should hold special events
1 staff member say that the shop should sell other products such as gardening equipment and flower vases.
 

Section 3: Recommendation

 

Based on the findings of this report, the following recommendations are made:

Target specific floral needs of customers during peak season. This includes selling more specific flower arrangements such as wreaths during holidays, pomanders for children attending events, and garland for decorating pews and doorways.
Floral Designers should conduct in-home consultations where regular customers can avail their help to arrange the flowers in their garden.
Floral Designers should also conduct special events and design workshops to increase the popularity of the shop. This includes popular themes such as seasonal wreath-making and fresh floral design.
Sell more products other than flowers and ornamental plants. Include fertilisers, gardening equipment, and flower vases in the shop.
Question at position 17
17
 
1 point 

 
 
Question at position 17 
i) Briefly explain why the shop should have more products and services