Bayview Resort Motel Ã¢ÂÂ¦. Review
The report concludes with recommendations for future users of the typology and indicates how this model could be used to assist the business performance of small motels.
This report provides recommendations for adjustments to Bayview Resort Motel marketing plan to guide the Campelss decision making on a go-forward basis, in light of market and economic trends impacting the resort and tourism industry.
2. Discussion (30)
2.3 Financial Performance
Gross Profit Margin Ratio
During the period 2003-2007, Bayview maintained a stable gross profit ratio at 95%. It is normal, because gross profit ratio should not fluctuate much from one period to another, unless major changes occur in the industry which affects the cost of goods sold or the pricing policies.
Bayview's gross profit ratio dropped dramatically to 91% in 2008. There were no pricing changes during the period, the decline may be caused by global economic crisis which reduced the sales.
Sale declined after the takeover.
This tells how fast the sales are growing and may lead to questions about growth relative to the general economy, growth relative to competitors, whether the growth is causing growing pains in terms of human and/or financial resources and how steady the growth is.
As the chart show, Bayview hit its peak of $333,998 in 2008 during the most prosperous seasons. After that, Bayview's gross revenue continued to decline. The main external factors leading to the decline were the economic downturn and the competition.
Bayview's revenue declined from 2009 to 2010 and from 2010 to 2011. Further, Bayview's 2011 revenue were the lowest of the nine years.
However, in 2011 Bayview's gross revenue fell to the lowest level in nine years and was down 40% from its peak in...