Knowing Your Numbers to Increase Your Profit
Understanding the financial health of your business is
critical to its success over the short and long term as you have seen in
the simulation play. In your simulation game play you have been
tracking many different financial metric and using the standard
financial statements to make decisions on growth. This week, you will be
completing a non-graded learning activity through the Small Business Association website
to gain a good foundation in understanding basic financial statements.
In your simulation for this week you will be reviewing the
Microsimulation called Profitability Analysis-Using Profitability
Analysis to Increase the Bottom Line. The ability of successfully
complete a profitability analysis will depend on your understanding of
the basic accounting reports and your knowledge of your own simulation
company. For this unit Discussion you will be using this week’s Reading,
Learning Activity, Profitability Analysis from the Marketplace
simulation. This Profitability Analysis will be available to you when
you log into the simulation in this unit and personal experience (if
applicable). Answer the following questions: How successful were you and your teams in using the
financial information provided in the Marketplace Simulation and what
would you do differently to increase your success based on the game play
you have completed so far? Provide specific examples of what went well
and what you would change if given the opportunity. What is the relationship between the financial
statements provided by the Marketplace Simulation and the concept of
profitability analysis? How will/can you use this tool to increase the
success of your decision making? Conduct research using the Kaplan Library, the web
or other sources that you uncover and post at least 3 additional
resources on how to use these tools to increase the foundation of
knowledge for all. Please also provide a small synopsis of each article
and the points you found particularly valuable.Identify a company that you are interested in
learning more about (your current company is fine to use) and
investigate their best practices on achieving profitability.

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