Ginger Design Consultancy - Case Study Example

Moreover, being an intellectual property of the company, there is the need for the company to have sufficient protection for such kind of new services developed from infringement. Hence the report makes comprehensive recommendations on the legal options available to the company on the protection of the intellectual property, being the services developed An evaluation of the marketing, financial and legal aspects of any new service developed is of great importance for any consultancy organization.

Especially where the company has the option of offering alternative service models with varying degrees of revenue and costs it is imperative that the company makes an evaluation of the alternatives available in the angles of financial and marketing adaptability of the options. Similarly it is for the company to look after the protection of the services developed with years of hard work by adopting suitable legal steps for the protection of the copyright of such services, lest, there is the danger of them being misused by the competitors.

Basically being a Report to the Management of the financial, marketing and legal angles of new services, this report deviates from the established reporting format for the purposes of coherence. As the first part, this rep. 2.0 Evaluation of the Financial Performance and Position for the Year 2006 as Compared to the year 2005: A review and comparison of the financial performances is greatly facilitated by the establishment of the key financial ratios. The Key financial Ratios for Ginger are calculated as below:Ratios for Profit and Loss Account:DetailsYear 2006 '000Year 2005 '000Sales598478Cost of Sales to Sales %41.4735.56Gross Profit to Sales %58.5362.76Administrative Expenses to Sales %40.8044.35Operating Profit to Sales %14.0716.31Profit after Tax to Sales % 9.7011.92Ratios on Balance Sheet:DetailsYear 2006 '000Year 2005 '000Sales to Fixed Assets 6.295.31Current Ratio1.511.26Sales to Current Assets 2.932.97Sales to Debtors4.435.19Loan to Equity0.520.092.

1 Commentary on the Financial Position:The analysis of the Profit and Loss Account is as below:The company's sales for the year 2006 are showing an improvement at 598,000 as compared to that 478,000 for the year 2005. This implies that the company's marketing efforts are starting to result in improved turnover showing the potential to improve further in the next three years periodThe cost of sales to Sales percentage at 41.47 percent for the year 2006 as compared to 35.56 percent for the previous year is quite high.

The company should think of introducing budgetary control measures to have a strict control over the expensesWith the increase in the cost of sales the Gross profit percentage is low at 58.53 percent for the year 2006 as against that of 62.76 percent for 2005. With the introduction of budgets the company would be able to enhance the gross margin percentageIn fact the company has done well