Revenue Cost Structure Proposal
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Revenue, Cost Concepts, and Market Structure Proposal
Cover Letter
Thomas Money Services, Inc.
A Consumer Finance Company
Subsidiary:
Future Growth, Inc.
Equipment Financing
Xxxx Street
Washington State, 99999
555-234-4567 Phone
555-234-3344 Fax
Xxxx Avenue
Oregon State, 55555
333-232-3333 Phone
333-443-2234 Fax
Confidential Business Proposal
Thomas Money Service, Inc. (TMS) has increased its revenues in the past by growing its business and expanding its services. The expansion of services includes issuing business loans, offering business acquisition financing, and commercial real estate loans. Thomas Money Service grew the company by establishing a subsidiary company called Future Growth, Inc. (FGI), which offers loans to finance equipment. The businesses flourished because of the large demand for these types of loans.
The current economic downturn has caused a significant decrease in the demand for these types of commercial construction loans. In the United States the construction industry has suffered substantial losses in the market causing a domino effect. However, research and data show that not every market in the construction industry suffered the same losses as did the housing industry where previously both companies had focused the majority of loans.
The following proposal will focus on offering the company recommendations to the companies to increase revenues, achieve ideal production levels, determine how both fixed and variable costs should be adjusted to maximize profit, and identify methods to reduce costs (McConnell, Brue, & Flynn, 2009).
Increasing Revenues
Because research showed not all construction markets are suffering equally in this downturned economy, the proposed plan would shift focus of construction loans from housing markets to commercial markets that include hospitals and nursing homes where growth and demands for new building loans exist. The company must focus in areas of growth to remain in...
Cover Letter
Thomas Money Services, Inc.
A Consumer Finance Company
Subsidiary:
Future Growth, Inc.
Equipment Financing
Xxxx Street
Washington State, 99999
555-234-4567 Phone
555-234-3344 Fax
Xxxx Avenue
Oregon State, 55555
333-232-3333 Phone
333-443-2234 Fax
Confidential Business Proposal
Thomas Money Service, Inc. (TMS) has increased its revenues in the past by growing its business and expanding its services. The expansion of services includes issuing business loans, offering business acquisition financing, and commercial real estate loans. Thomas Money Service grew the company by establishing a subsidiary company called Future Growth, Inc. (FGI), which offers loans to finance equipment. The businesses flourished because of the large demand for these types of loans.
The current economic downturn has caused a significant decrease in the demand for these types of commercial construction loans. In the United States the construction industry has suffered substantial losses in the market causing a domino effect. However, research and data show that not every market in the construction industry suffered the same losses as did the housing industry where previously both companies had focused the majority of loans.
The following proposal will focus on offering the company recommendations to the companies to increase revenues, achieve ideal production levels, determine how both fixed and variable costs should be adjusted to maximize profit, and identify methods to reduce costs (McConnell, Brue, & Flynn, 2009).
Increasing Revenues
Because research showed not all construction markets are suffering equally in this downturned economy, the proposed plan would shift focus of construction loans from housing markets to commercial markets that include hospitals and nursing homes where growth and demands for new building loans exist. The company must focus in areas of growth to remain in...