Increasing Revenue and Evolving Organizational Structure at Nice Spice Company

Abstract

Task 1 Table 1 illustrates the positive changes in the firm's net sales over the years 2018 to 2021. The percentage change in revenue for 2019 was 8.1%, implying an increase in the total revenue in 2019. The table also shows a 4.6% increase in net sales for 2020. A 5.7% increase in net sales is noted for the year 2021. Therefore, we can conclude that the total revenue of the firm is increasing over the years 2018 to the year 2021. Table 1: A Table Showing the Percentage Change in Revenue for 2019 to 2021 Year 2018 2019 2020 2021 Net Sales 9[phone]2[phone]2 11320731 Percentage Change in Net Sales   8.1 4.6 5.7 Table 2 below shows a positive rate of the firm's operating profit margin for the years 2018 to 2021. The operating profit margin for 2018 was 28.6%, while that for 2019 was 27.8%. The operating profit margin for 2020 was 25.4%. We can note a downward trend in the operating profit margin from the year 2019 to 2020. However, there was a sudden increase in the operating margin profit for 2021, which was as 6.1%. These results mean that the firm is making profits from 2018 to 2021 since the total revenue was more significant than the total expenses. According to this analysis, we can conclude that the firm's performance has a U-shape trend since it was slowly decreasing from 2018 to 2020 but later increased in 2021. The firm's profitability is slightly unstable and positive. Table 2: A Table Showing the Operating Profit Margin for 2018 to 2021 Year 2018 2019 2020 2021 Net Sales 9[phone]2[phone]2 11320731 Cost of Sales 3[phone][phone] 234746 Selling General and Administrative expenses 2[phone][phone] 3378016 Operating earnings 2[phone][phone] 7707969 Firm Operating profit margin 0.28602 0.2784 0.254463 0.680872 Firm Operating profit margin percentage 28.6 27.8 25.4 68.1 Nice Spice Company owns a massive manufacturing facility in the US. Nice Spice Company moved to a larger facility where they installed advanced production lines. The new facility increased the number of employees and built a more complex organizational structure. Nice Spice Company engages in Product differentiation and brand uniqueness by specializing in blending unique spice recipes. Nice Spice company is known for packaging approximately 280 spices, season blends, and other flavor extracts. Its primary products include black pepper, fenugreek, cinnamon and African bird pepper, among others. The company purchases different extracts from other distributors and later blends and repackages the product. Therefore, Nice Spice offers its customers a wide range...