Financial Reporting for Decision Making E-Marketing

Question: Discuss about Financial Reporting for Decision Making of E-Marketing. Answer: 1. Jeremy used the carsales.com website for purchasing his new car Ferrari. It must be noted that the company is concerned with the online classified and advertisement of cars during the financial year. The company also provides software data, financing the sales of cars and other predominant services to its customers. The directors report states that there were several indicators of domestic sales during the financial year, which contributed to the entire business performances of car sales.com. Key indicators of car sales.com during the financial year shows a 7% growth on the revenues of the retailers, which consisted of yields from premium advertisements of products. In addition to this, the company is usually interested in online mode off advertisement operating under the high growth international markets. Speaking about the revenues of carsales.com its private revenues experienced positive a growth of 8% in the automobile market having strong B2C segments arising out of sale of tyres. According to the directors report the performance is also dependent on the ability of the company to monitor and manage the chief aspects of projects. These projects mainly comprises of upgrading the websites and several other projects comprising of information technology. The reason for disagreement is that after considering both the qualitative and quantitative aspects of directors report, it is evident that Car sales is not a retailer but it is an advertisement company dealing in classified. Its main sources of revenue are exchanges obtained from the differences on the translation of foreign operational functions. 2: The issues that have been identified based on the Jeremys statement are as follows; Financial aspects: Car sales.com is a website, which deals in the sales of financial services with fewer amount of investment but high volume of profit margin. The financial aspects of car sales.com states that the company generally sells first hand cars to the customers and with the primary aim of promoting its websites (shareholder.carsales.com 2016). Whereas, the Car Max INC is trading in old cars so it may evident that car max is earning more income however, the profit margin is less than the carsales.com. It is because the car sales has low rate of investment with high margin of revenues. Operating aspects: Car max INC sells used cars but car sales on the other hand sell both first hand and second hand cars to its customer. The issues identified that is that carsales.com has direct tie up with the car companies therefore; it can provide cars to the customers at low prices. Hence, from the customers perspective carsales.com is widely accepted for making any purchase decision. Marketing aspects: Car sales consists of websites marketing, as it has the capability to reach more number of customers through the help of internet than that of car max INC which only reaches to the customers who are located nearby to its retail outlets. Therefore, the customers instead of looking around for the price of the cars it can move to the carsales.com websites to know the price of the cars. Reference list: Frank, J.F. and Pamela, P.P., 2016. Financial Management and Analysis. Kaplan, R.S. and Atkinson, A.A., 2015.Advanced management accounting. PHI Learning. Shareholder.carsales.com, (2016). [online] Available at: https://shareholder.carsales.com. [Accessed 17 Jul. 2016]. Strauss, J., 2016.E-marketing. Routledge.