The Balanced Scorecard of
Holland Flower Market
How can Holland Flower Market improve?
Liselotte de Zoete 6042074 27-6-2014
Final version
BSC Accountancy & Control
Table of Contents Title page Table of contents 1 Preface 3 Abstract 4 Samenvatting 5 1. Introduction 6 2. Theoretical Framework
2.1 Origin Balanced Scorecard 8
2.2 Balanced Scorecard perspectives 9
2.2.1 Learning and Growth Perspective 9
2.2.2 Internal Business Process Perspective 10
2.2.3 Customer Perspective 10
2.2.4 Financial Perspective 10
2.3 Management processes 12
2.4 Cause-and-effect principle 13
2.5 Process of creating the Balanced Scorecard 15
3. Case study Holland Flower Market
3.1 Background Holland Flower Market 16
3.2 Analysis of the finances of Holland Flower market 17
3.2.1 Liquidity 17 3.2.2 Profit 18 3.2.3 Sales 19 3.2.4 Borrowing 20 3.2.5 Assets 21 3.2.6 Employees 22
3.3Departments and its problems 23
3.3.1 Sales department 23
3.3.1.1 Problems at the sales department 23
3.3.2 Dispatch department 25
3.3.2.1 Problems at the sales department 25
3.3.3 Bouquet department 26
3.3.3.1 Problems at the bouquet department 26
3.3.4 Accounting department 28
3.3.4.1 Problems at the accounting department 28
3.3.5 Import department 29
3.3.5.1 Problems at the import department 29
3.3.6 Carlsbad market 30
3.3.6.1 Problems at the Carlsbad market. 30
4. Application Balanced Scorecard
4.1 Financial perspective 32
4.2 Customer perspective 33
4.3 Internal business process perspective 33
4.4 Growth and learning perspective 34
4.5 Balanced Scorecard of Holland Flower Market; The processes 35
5. Conclusion 36 References 38 Appendix A 40 Appendix B 42 Appendix C 43 2
Preface
I would like to thank Holland Flower Market and all of its employees for all the help I received making this thesis. Holland Flower Market gave me full access to all its company’s information. I learned a lot in the time I spend there. Without them I could never have written this thesis. I hope all the readers enjoy the thesis as much as I had writing it .
Abstract
The Balanced Scorecard is one of the most used performance measures these days. It gives a company the opportunity to connect its vision and mission to clear objectives and connect business ideas to financial measures. It also reduces the gap between upper and lower management.
In this thesis a Balanced Scorecard will be made for Holland Flower Market, a Los Angeles based floral wholesaler. How can Holland Flower Market improve? The company went through a lot of changes the last couple of years and finds itself in a identity crisis. There is a need for a new clear vision and how to achieve this. This will lead to a Balanced
Scorecard where Holland Flower Market gets a clear vision how to function better. Holland Flower Market should focus on their bouquet department and keep their image as high-end wholesaler up. The Carlsbad division should be shut down and the Los Angeles market should be kept at the same revenue level. Customer and employee satisfaction should be improved as well as the production and efficiency throughout the company.
If Holland Flower Market follows the points made by the Balanced Scorecard it should go through all the changes successfully and become even more stable and succesfull then before.
Samenvatting
De Balanced Scorecard is een van de meest gebruikte prestatie-indicatoren van deze dag. Het geeft een bedrijf de mogelijkheid om zijn visie en missie verbinden met duidelijke
doelstellingen en verbindt bedrijfsideeën aan financiële maatregelen. Het vermindert ook de kloof tussen de hogere en lagere management.
In deze scriptie wordt een Balanced Scorecard gemaakt voor Holland Flower Market, een in Los Angeles gevestigde bloemen groothandel. Hoe kan Holland Flower Market zich
verbeteren? Het bedrijf ging door veel veranderingen de laatste paar jaar en bevindt zich in een identiteitscrisis. Er is behoefte aan een nieuwe heldere visie en hoe dit te bereiken. Dit zal leiden tot een Balanced Scorecard waar Holland Flower Market een duidelijke visie krijgt hoe het bedrijf beter te laten functioneren.
Holland Flower Market moeten zich concentreren op hun boeket afdeling en moet zijn imago als groothandel met zeer goede kwaliteit producten hooghouden. De divisie Carlsbad moeten worden stilgelegd en de Los Angeles markt moet op hetzelfde omzetniveau worden gehouden. Klant en medewerkerstevredenheid moeten ook worden verbeterd zowel als de productie en efficiëntie in het gehele bedrijf.
Als Holland Flower Market volgt de punten die de Balanced Scorecard moet gaan door alle veranderingen succesvol en word nog stabieler en succesvol dan voorheen.
Introduction
Kaplan and Norton state that “A company's ability to innovate, improve, and learn ties directly to the company's value.” In this day and age basing your business strategy solely on Financial measures is not enough anymore. These days with all the technology and
globalization a company has to excel in every way to be successful. Kaplan and Norton are the creators of the Balanced Scorecard(Bukh and Malmi, 2005). Now companies as
Rockwater and Apple are using the Balanced Scorecard to measure their performance and set strategy(Kaplan and Norton, 1993). The Balanced Scorecard is a report consisting not only out of financial measures but also consists out of non-financial measures. The Balanced Scorecard consists out of four different perspectives; financial perspectives, customer perspective, innovating and learning perspective and internal business perspective( Kaplan and Norton, 1993). By using several perspectives companies have more knowledge and can better act on the changes in the economy and competition(Lev, 2003). The Balanced
Scorecard is a tool to get the companies vision and strategy on paper and communicate it better to the rest of the company. It will make connections between financial and non-financial perspectives.
In this thesis a Balanced Scorecard will be made for a Flower Wholesaler from Los Angeles named, Holland Flower Market. This company was founded by three Dutchmen in 1984 in Pasadena, CA. It started out as flower sales out of the back of a truck and grew into a large flower wholesaler on the Los Angeles and Carlsbad markets. In the first years the focus lay on selling flowers to event planners and florist but in the last few years, they started new ventures as another market in Carlsbad and selling bouquets and arrangements to
supermarkets. Because of the large market changes, growing competition and a large shifts within the company it is hard to keep things straight. Also is the Bouquet department vastly growing and is the Carlsbad market making losses for the last couple of years. There will be a lot of restructuring within the company. A clear vision is missing at the moment and that is why a Balanced Scorecard(BSC) is needed for Holland Flower Market. A BSC could offer a clear plan for Holland Flower Market and make solutions for the current problems.
The question to be answered is: How can Holland Flower Market improve? The question will be answered by making and applying the Balanced Scorecard. First there will be a literature review about the Balanced Scorecard. What is the Balanced Scorecard and what
does it consist out of? It will also discuss the necessity of the Balanced Scorecard. And what can be achieved when using the Balanced Scorecard.
The next section will discuss Holland Flower Market. This chapter will tell the
background story of Holland Flower Market(HFM) and it will give an analysis of the finances of HFM. This section will give a view of what each department consist out of and what each departments problems are.
This will be followed by why it would benefit Holland Flower Market to implement a Balanced Scorecard. There will be a clear vision and mission created for Holland Flower Market and how to resolve the biggest problems in the company. In this chapter the BSC will also be made and implemented for Holland Flower Market.
And this thesis will be finished with a conclusion of the research of the Balanced Scorecard and Holland Flower Market. And how it will lead to a healthier company.
Theoretical framework
2.1 Origin of the Balanced Scorecard
The origins of the Balanced Scorecard can be traced back to 1990 when the Nolan Norton institute started researching other ways to measure performance. Till then most companies reviewed their companies performance solely on financial measures. The study was started because there was a believe that performance measures based solely on finances were becoming obsolete. The study participants believed that focusing entirely on financial
measures hindered companies’ ability to create future economic value. They wanted to change the way of strategic thinking within companies. Two of the participants of the research were David Norton and Robert Kaplan and with the study the concept of the Balanced Scorecard was born. This led to the article: The Balanced Scorecard: Measures that drive
performance(1992), where the duo published their findings. And this was followed by their book: The Balanced Scorecard: Translating Strategy Into Action(1996).
2.2 The perspectives of the Balanced Scorecard
The Balanced Scorecard consists out of four perspectives, namely: Learning and Growth Perspective, Customer Perspective, Internal Business Processes Perspective and the Financial Perspective. An organization has to translate its mission and strategy into one of these
perspectives. By defining the organizations mission and vision into all of these perspectives a clear day-to-day plan in how to achieve these missions and visions will commence(Kaplan and Norton, 1996(b)).
In addition, the BSC extradite a cause-and-effect relationship between all the perspectives. By finding these relationships management is challenged to think about its strategy.
The perspectives have a hierarchical order(Bryant, Jones and Widener, 2004). It will start with the learning and growth perspective, followed by the internal business process perspective then comes the Customer perspective and finished with the financial perspective. The outcome of a lower-level perspective may be an indicator or predictor of a higher-level perspective.
2.2.1 Learning and Growth
Learning and Growth is the first perspective in the BSC Hierarchy. The main question that has to be answered for the learning and growth perspective is: Can we continue to improve and create value? The objectives in the learning and growth perspective is to enable ambitious projects to be achieved in the other perspectives. It offers an infrastructure for the other three perspectives and that is why it is the first perspective in the hierarchy.
In this perspective managers need to define the employee capabilities and skills, technology and corporate climate needed to support a strategy (Kaplan and Norton, 2001, 94). The three main categories for the learning and growth perspective are therefor: employee capabilities, information systems capabilities and motivation, empowerment and
alignment.(Kaplan and Norton, 1996(a)). Managers must base their objectives in these categories. To better the company in this perspective significant investments in people, systems and organizational alignment are necessary.
2.2.2 Internal Business Process Perspective
Secondly in the BSC Hierarchy comes the Internal Business Process Perspective. The main question to be answered here is: Where do we must excel at? This perspective consists out of a generic view of the value chain in the internal business process. The value chain includes, innovation, customer management, operational, and regulatory and environmental processes. It has to make objectives to better new products and services and further market penetration. The value chain has to be made more efficient. The outcome of the Internal Business Process Perspective provides a base for the customer perspective. By making products and services better and make the whole process more efficient, customers will be more satisfied.
2.2.3 Customer perspective
The Internal Business Process Perspective is followed by the customer perspective. How do customers see us? Is the essential question to be answered. This perspective offers the company to align their core customer outcome measures, satisfaction, loyalty, retention, acquisition and profitability. And by knowing this information the organization knows which customers and market segments to target. It is important for a company to be aware of its target customers and market segment to align its products and services to the demand. Companies that do not recognize this see themselves fall behind their competitors.
Managers must also choose which value propositions to achieve for their targeted customer segment. Managers can select objectives in three classes of attributes, and when they satisfy these objectives it will enable the business to retain and expand. The three classes of attributes are: Product and service attributes, customer relationships and image and
reputation. When managers keep these attributes in mind, and make objectives across them they can maximize the value of their targeted customer segments.
2.2.4 Financial Perspective
The last part of the BSC hierarchy is the financial perspective and also the most important. Traditionally companies solely based their performance revues on how they did financially. The main question to be answered is: How do we look to shareholders?
The financial perspectives has two purposes, on the one hand it gives a financial view on how a certain strategy works out. And on the other hand it measures how well the other goals from the other perspectives do. Because all the activities within the other perspectives are executed to increase the financial results.
In the Balanced Scorecard it is important that operational results are linked to financial results(Kaplan and Norton, 1996, p. 150). But Financial result only show their light on how the company has done in the past. To anticipate on the changing environment it is important for the Balanced Scorecard to have the other perspectives. Those are the leading drivers for future performances. A company’s value is determined by its expected value in the future. And the performance measures in the financial perspective are a snapshot of its past achievements, for example; The profit, revenue and market share.
2.3 The Balanced Scorecard as strategic management system
A problem that a lot of companies face is the inability to link a company’s long-term strategy with short-term actions. When a company implements the Balanced Scorecard it not only lets them introduce different perspectives but also four new management processes.(Kaplan and Norton, 1996(a), p. 76)
The first new process, translating the vision, help managers create a consensus across the rest of the organization regarding its vision and strategy. Very often management gives vague goals and objectives that are hard to convert to day-to-day activities. By translating its vision into operational terms it will be clear to the lower-level staff how to achieve the company’s vision.
The second process is ‘communicating and linking’ and this process lets managers communicate their vision up and down the organization. Traditionally management evaluates departments by their financial performance. But by implementing the Balanced Scorecard it gives managers a way of ensuring that the organization understands the company’s vision and that the objectives of the organization, the departments and individual are aligned. And by doing this all employees know what is expected of them.
After the communicating and linking process, the business planning process follows. This process gives companies a way to combine the business vision with it financial goals. Today a lot of organizations hire outside help, and managers find it often difficult to
implement their ideas in the companies objectives. But by using the Balanced Scorecard the outside help first of all gets a better idea where the company needs improvement. And second of all it enables managers a way to make practical changes.
And last of all, the fourth process, ‘feedback and learning’. It enables companies to
learn from the short-term results and how successful the Balanced Scorecards perspectives and processes are. By reviewing the perspectives it will offer the company a way to modify these and better future results.
When a company will implement the Balanced Scorecard with both the perspectives and processes it will offer a great backbone. By creating the Balanced Scorecard with both the perspectives and processes no stone is left unturned. Management has to consider all
strategies and vision and what is most important for the company. But still everything has to be linked together. This is called the cause-and-effect principle and this will be discussed in the next chapter.
2.4 Cause-and-effect principle
When a Balanced Scorecard is implemented correctly a map of cause-and-effect relationships should arise. A Balanced Scorecard should consist out of a linked series of objectives and measures that are both consistent and mutually reinforcing(Kaplan and Norton, 2001). By creating links between the perspectives in the BSC the story of each department can be created. For example, when an employee is better trained, customer satisfaction becomes better and sales will rise. This connects the learning perspective, with the customer
perspective and the financial perspective. These are hypotheses but they can be validated by the measurement system. This way the relationships among objectives can be managed properly and upper management can see what makes a difference in the company and what does not. Because of these connections the Balanced Scorecard goes a step further then other systems like for example the tableau de bord.
There are researchers that have their doubts about the cause-and-effect relationship of the BSC. Nørreklit is an author that does not agree with the above mentioned cause-and-effect relationship(2000). She says that the Balanced Scorecard and the thereby theory of Kaplan and Norton is more persuasive than convincing and that it is ambiguous. She argues that there should be a time dimension in the Balanced Scorecard. But it is implied by Kaplan and Norton’s work(Bukh and Malmi, 2001). Every strategy has a timeframe, for example: Sales
should improve in a timeframe of 5 years.
The second point Nørreklit makes is that there is no cause-and-effect relationship between some of the suggested areas of measurement and the control model as the BSC assumes. One of the examples that Nørreklit gives is customer satisfaction. She says that it is not generic that increased customer satisfaction leads to better financial performance. But as Bukh and Malmi state, there is no need for generic cause-and-effect
relationships.Management should derive possible relationships by its own insight.
And third, Nørreklit states that the four perspectives are independent and not related in a causality chain as Kaplan and Norton state. But this is not necessary for the goal that the Balanced Scorecard has, the BSC wants to achieve a plan where the actions with the biggest impact on the finances stand out and that is what it does. So although Nørreklit is not
completely incorrect, the goals wherefore a company would implement the BSC are still achieved.
2.5 Process of creating the Balanced Scorecard
The theory of the Balanced Scorecard is one thing but creating it is another. Even with all the perspectives and processes it still takes time and effort to create the Balanced Scorecard. So to develop a Balanced Scorecard for an organization several steps have to be followed(Phadtare, 2010.)
The first step is collecting background information of the company. The information needed consists out of financial statements, summary of offers by suppliers and customers and information about the competition.
The next step consists out of providing education to top and middle management on the BSC. It is important for management to know what is achievable with the BSC and why it is so important that it is implemented properly. Later on the lower level staff will receive education about the BSC.
After educating the company should develop or confirm strategic intent. Especially smaller companies do often not have a clear mission and vision for the company. It is
important that before creating the BSC the vision of the company is clear. The vision leads to the strategy that needs to be followed throughout the BSC.
When the company’s vision is clear there should be an interview with executive management. When an interview is held, important information about the company’s competitive position and possible Scorecard objectives and measures can be collected. Also important industry information can be revealed and that can be important for the Scorecards developer. An example of the collected information can be the difference in handling accounts compared to the competition.
After collecting all this information a strategy map should be developed. A map
should consist out of what should be done per perspective to execute the strategy successfully.
The financial perspective should entail what the company wants to achieve financially. The customer perspective should consist out of what the company wants to offer its customers. How to innovate and grow will be discussed in the innovation an growth perspective and finally the internal control perspective will tell how to achieve this across the company.
When a strategy map is made the organization should develop performance measures. This should include the nature and number of measures that a Balanced Scorecard should consist out of. Adams, Joseph and Don(1995) think that the metrics should be derived from strategy, developed for activities and business processes. They should also be dynamic so they can keep up with the changes in the strategies, processes and competitive environment. And finally the performance measures should be developed by the whole team of the organization. Other authors suggest that the measures should be measurable, attainable and that there are not to many. Meyer(1994) even says not more than 15 measures should be selected.
This all should be followed by establishing targets and prioritize initiatives. To be able to measure difference after the BSC has been implemented a time frame should be achieved. And all new objectives cannot be achieved all at the same time so the targets should be prioritized.
All of the above should be put into a BSC framework and followed by an
implementation plan. Because having a Scorecard is one thing but implementing is another. A taskforce should be made and assigned tasks to achieve the goals set in the Balanced
Scorecard.
3.1 Case: Holland Flower Market
In 1984 three Dutch men saw an opportunity in the cut flower wholesale market at the west coast of the United States of America. They saw the increasing popularity of cut flowers in the U.S.A and noticed there was no real wholesaler to intermediate between the flower farms and the florists at the West Coast. They had start capital of a 1000 dollars and bought a refrigerated station wagon and this was the start of Holland Flower Market. They start selling only Dutch imported flowers to florists and event planners and delivered them to their door.
After 30 years Holland Flower Market is one of the largest wholesalers in the Los Angeles area. The company grew from three to 55 employees divided over five departments and it also has an second market in Carlsbad. In the beginning the emphasis laid on deliveries of single stems to florists and event planners but it shifted towards the bouquets made for the supermarket chains. The company also not solely imports flowers from Holland anymore but from all over the world. Holland is still one of the biggest suppliers together with Colombia and Ecuador.
3.2 Analysis of the finances of Holland Flower Market1 3.2.1 Liquidity Working capital: 2010 2011 2012 2013 $898,303.45 $720,309.74 $614,492.27 $584,975.34 Table 1 Accounts Receivable Days(ARD):
2010 2011 2012 2013
41.83 44.43 35.88 32.69
Table 2 Account payable days(APD):
2010 2011 2012 2013
34.63 33.38 34.67 28.51
Table 3 Operating cash flow (EBITDA):
2010 2011 2012 2013
$462,621 $218,774.63 $225,586 $379,328
Table 4
Because of the large amounts of cash flow, debits and credit, the company should always be aware that the liquidity is sufficient. The flower wholesale business is seasonal, so the liquidity has to be monitored. The working capital is high enough to pay all the current
liabilities; the accounts receivable on the other hand are very high. Also the working capital is in a downwards spiral. This is probably caused by increasing liabilities and/or decreasing assets. To improve the working capital the payment process should be adjusted.
The accounts receivable days are on the high side because the term of payment is 30 days and the ARD should be lower than 30. Also is the Account payable lower than the account receivable days, but the APD is still on average above 30. Both are becoming less every year, what is especially good for the Accounts receivables and depending on the average days that bills need to be paid good or bad for the accounts payable. Accounting at Holland Flower Market makes sure bills are paid as late as possible unless the company offers discounts for early payments.
The EBITDA is positive for all years and is getting higher compared to the last 2 years. What means that there is enough cash for running the company.
1 All calculations were made how they should be according to Gibsons, Financial reporting and analysis(2012)
17
3.2.2 Profit:
Operating Cash Flow Margin:
2010 2011 2012 2013 4.1% 2% 1.9% 3.1% Table 5 Return on Equity: 2010 2011 2012 2013 35.28% 19.93% 24.03% 38.17% Table 6 Labor Cost Ratio:
2010 2011 2012 2013
15.49% 17.14% 14.73% 15%
Table 7
Profit and profit margins are a relatively easy way to oversee how your company is doing. Holland flower market has a goal of 3% as profit margin. The operating cash flow margin of 2013 is 3% and the other years it differs around 1% with 2013. There are big differences between the ROE’s every year. This is probably caused by the loss in 2011 and the low profit in 2012. The labor cost ratio is mostly around 15% this is also the largest expense within the company. There is a lot of staff needed at HFM because not only does HFM sell flowers to their clientele, it also process the flowers, makes bouquets and delivers them. Also is the flower business very dependent of certain seasons and it is hard to have seasonal workers work on certain places.
To improve the profit margin the buying process should be very efficient and during sales the margin should be monitored. The margins are on the mark for the bouquet
department so especially on the market there should be more focus on the prices.
3.2.3 Sales: Sales: 2010 2011 2012 2013 $11,239,839 $11,050,731 $11,638,942 $12,226,077 Table 8 Financial Indicator: 2010 2011 2012 2013 $208,145.20 $204,643.20 $232,778.80 $235,116.87 Table 9 Fixed Asset Turnover:
2010 2011 2012 2013
115.44 85.45 107.6 49.11
Table 10
To do well as a business, sales must grow every year or at least not decrease. HFM is expending the amount of supermarkets it supplies and tries to be more certain of the amount of sales by asking customers to order and make standing orders with them. The financial indicator goes up every year what means the sales per employee are up. This is caused by layoffs and more effective time management of the staff. The goal is to improve this even more.
The fixed assets turnover differs a lot between the last 4 years; the cause of this is that there are a lot of new investments made, for example new trucks, while the sales didn’t grow a lot. The expectation is that the sales will grow because of new large customers and also because of the investments made.
3.2.4 Borrowing:
Debt-to-Equity Ratio:
2010 2011 2012 2013
0.93 0.79 1.09 1.12
Table 11 Cash Flow Leverage:
2010 2011 2012 2013
1.93 3.2 3.47 2.56
Table 12 Cash Flow Coverage:
2010 2011 2012 2013
32.62 15.43 14.8 17.94
Table 13
It is important for a business to generate profit when borrowing money and make sure it is not to just cover costs. The Debt-to-Equity ratio gives the composition of the total capitalization. The total capitalization indicates the balance between money or assets owed versus the money or assets owned. A low rate indicates a low financial risk and a higher level indicates more financial risk but also gives a higher return on benefits of financial leverage. The ratio is getting higher so this may indicate that HFM takes more advantage of their increased profit. HFM only has to make sure the ratio doesn’t get to high and that the company will not be able to pay their debts.
The cash flow leverage indicates till what extent HFM is able to pay their debts with the operating cash flow. The lower this ratio is how better, in 2013 the value decreased but it is still higher than in 2010. The cash flow coverage indicates till what extent the company is able to service debt payments from operating cash flow. An increasing ratio is a good
indicator of improving credit quality. Out of the above numbers can be concluded that HFM is able to pay of its debts and that the financial risks are decreasing.
3.2.5 Assets: Return on Assets: 2010 2011 2012 2013 18.24% 11.11% 11.49% 18.04% Table 14 Asset Composition: 2010 2011 2012 2013 92.79% 89.86% 93.16% 86.5% Table 15
The ROA indicates how much cents of profit; each dollar of assets is producing every year. The ROA of HFM is relatively low in 2011 and 2012 but grew in 2013. The rule of thumb when it comes to ROA is that a company does not want it to fall below 5 percent, so HFM is doing well at that department.
The Asset composition is very high; this means the company can meet their short-term liabilities. The only risk for HFM is that the biggest part of their current assets is made up out of Accounts Receivable and this still consists out of a lot of bad debt.
3.2.6 Employees:
Return on Labor:
2010 2011 2012 2013
16.99% 8.28% 8.97% 16.62%
Figure 16 Profit per Employee:
2010 2011 2012 2013
$6233.33 $3268.71 $3452.75 $6393.17
Figure 17
2011 and 2012 were not really good years for HFM. One of the measures taken was to cut back costs on staff. Several employees were laid off and everybody got a 10 percent pay cut. In 2013 the profitability per employee rose. However the amount of employees start rising again and a few of the employees got their pay cut back. Another part of the money that previously was used as salary is being returned as a bonus. This is being done at the sales and dispatch department.
The return on labor almost doubled in 2013 what means that the employees are working more effectively.
3.3 Departments and its problems
The company consists out of the following; the sales department with department head A. Bosma, the dispatch department with department head S. Herrera, the accounting department with department head M. Mercer, the bouquet department with department heads R. Scott and D. Rodriquez, the imports department with department head P. Vela and the Carlsbad market with as manager M. Imber
3.3.1 Sales
There are two different types of sale teams at HFM. At one hand you have the salespeople on the market floor, which sell to walk-ups, to regulars but also on the phone to florists and other companies that need flowers. The sales manager of the Los Angeles market is A. Bosma. There also is the sales team that sells primarily bouquets and arrangements to supermarket chains. The percentage of sales done by the bouquet department is 35.42% this year and 35.86% last year. There is also a market floor sales team in Carlsbad, the percentage of sales done by Carlsbad is 8.23% this year and 8.97% last year. To motivate the sales team on the market floor in Los Angeles HFM just started handing out bonuses for the highest selling salesman. The salespeople of the bouquet department and Carlsbad don’t have extra bonuses for whom sell the most but they are on the top pay scale.
The salespeople on the market get a daily update for which prices the flowers should be sold for from A. Bosma. Upper management get the prices of purchased flowers and also the quantities in a daily mail. All the information is put into excel sheets. Not only the prices and quantities of the flowers are put in the excel sheet, but also the amount of bouquet needed and a schedule for the bouquet department. This way, there should not be any overproduction and overtime can be hold inline.
3.3.1.1 Problems at the sales department:
The biggest problem with sales is that the Account Receivables are far too high. The
customers can only buy on credit when the open a personal account and have a credit history. Depending on this history their credit limit is determined. When a certain account has gone over the limit or has a lot of outstanding bills, the account can be frozen. The problem with method is that it is often too late to collect any of the outstanding bills and people are too far in to pay off their credit. It also takes a very long time before non-recoverable accounts are
credited as bad debt. Per order the customer gets an invoice; it gives all the information of that particular order. And at the end of the month the costumer will receive a statement with the amounts on it that still need to be paid. The problem with this is that there is not a date on the statement where it states before what date to pay. Also the text where it stays what the financial charges are when the payment of the invoices is not done on time is missing. A second problem with sales is that the sales people do not review the purchase price enough and sell flowers sometimes with a very low margin. It is very easy for them to check in the computer but they do not do it. Also the selling price of roses is not put in the computer yet so it is hard for management to check at which margin the roses are sold.
A. Bosma, the sales manager, is not very organized. He got an assistant but she only does the purchase orders or she will help on the sales floor. Because of his disorganized work other departments can get in trouble. For example by not notify the dispatch department what needs to be picked up a day ahead the driver can get a lot of overtime. Also the growers are starting to complain because they get the orders in late.
Furthermore it is hard to check if the salespeople put all the sales in to the computer. At this area there is no fraud control. There is a possibility for salespeople to make sales, not report them and keep the money. For fraud to occur three conditions have to be met. First there has to be incentive to commit fraud, secondly there has to be an opportunity to commit fraud and finally the employee has to be able to rationalize what he has done. At HFM there is incentive to commit fraud, especially with the lower level workers. They have a lower pay, they do not have a direct bond with the owners and feel more pressure from the managers to do a good job. Also because they are feeling more distant it is easier to rationalize what they have done. So HFM has to make sure there is no opportunity to commit fraud.
The last important thing is that HFM makes sure that the bonus gives a positive incentive to the sales team. Because it costs money to give out bonuses so it has to pay off.
3.3.2 Dispatch
All the logistics at HFM is being arranged by manager S. Herrera and her assistant. Normally there are 10 drivers to make deliveries and pick-ups. The manager makes a schedule of all deliveries and pick-ups weekly. All the deliveries can be found in the computer. The deliveries that have to be made to the supermarkets are almost all arranged by the assistant and the other deliveries are put in the computer by the sales people. The fleet consists out of 4 trucks and 7 vans. When customers order for $200 or more delivery is free and otherwise it will cost 35 dollars. All drivers have their own gas pass with their own code and even when their driving another van they have to use their own gas card. This way HFM can be sure that the gas tanked is only being used for company purposes. All payments made to the drivers have invoices and the incoming money and the invoices are being compared by accounting. Because of this process HFM can make sure that the drivers do not pocket any of the money. Aside from this all, only drivers are allowed to make deliveries to discourage fraud.
3.3.2.1 Problems at the dispatch department
The dispatch department is really well management and there is not a lot of room for fraud. One of the points where there is room for improvement is the deliveries to Carlsbad. A lot of the time, drivers are being sent out on Friday for really small orders. Mondays till Thursdays a driver is send out towards San Diego anyways so extra deliveries to Carlsbad do not cost a lot of extra time but on Fridays a driver has to be sent out that way only for a Carlsbad delivery. This takes a lot of time and money, and mostly is not directly necessary.
The other thing is that the drivers make a lot of overtime compared to the other staff. Especially the pick-up drivers, the list for their pick-ups comes in late while the deliveries that have to be made to Carlsbad have to be made early. This results in a lot of overtime. Another reason why there is a lot of overtime at the dispatch department is because they have been understaffed for the last years.
3.3.3 Bouquet department
The bouquet department is a relatively new venture of the Holland Flower market. It started in 2002 and its primary focus is bouquets and arrangements for supermarkets. They make the higher priced bouquets for several supermarket chains. This department is the fastest growing one of the HFM. At this point they are expanding out of state. This department has the best profit margin of all HFM divisions. This probably became that way because they make certain price agreements beforehand, use the same recipes and it stays the same for a longer period of time. There is less insecurity than at the ‘normal’ market what also can be a reason why the profit margin is higher at the bouquet department. The department is run by the creative director R. Scott, direct manager G. Sanchez, salesman D. Rodriquez and his assistant A. Rios.
3.3.3.1 Problems at the bouquet department
It is always hard to uphold a fast growing business. You have to keep on hiring, training and buy new equipment and supplies and all of this while keeping up the best quality. The bouquet department has the same problem.
Another hard thing for them is that the flower business is a very seasonal business. When there is a holiday a lot of hours have to be made but in the summertime there is very little work. But the staff has to be maintained because they need training to make bouquets and arrangements.
On the other hand the management is fairly understaffed. A. Rios started out as the assistant of D. Rodriquez but is doing a lot of sales on her own now. And they still have to answer phone calls
There have been several complains about the management style of R. Scott and G. Sanchez. Some of the staff complained that they are too strict and yell too much. This can be hard on them especially when the pressure is high during the holidays.
There has been a lot of overturn of staff. This could be because of the strict management style of R. Scott and G. Sanchez but also because of the long working hours during the holidays and the physical distress it has on the body. This leads to a lot of extra training costs.
As mentioned before the bouquet department does its own purchasing of office
supplies and such. The costs made by the bouquet department and the LA market are not split up. This way it is really hard to get the exact cost of both places.
On the other hand there is very little room for fraud at the bouquet department. There are no direct payments made to the bouquet department and the prices are set as is the recipe for the bouquets. There is also almost no way to take flowers because the amount of flowers delivered depends on how many are needed. The only room of fraud lies with the managers, they can make non-business expense claims. That is why it is important to the purchasing through the LA market, so there is more control over what is happening.
3.3.4 Accounting
The accounting department is located at the LA market. It consists out of 4 ladies that do all the finances for the Holland Flower Market. The supervisor of this department is M. Mercer and when it is needed an outside accountant does some of the accounting work. The
accountant department does all the checking of invoices, makes sure all accounts are being paid and keeps everything regarding finances up-to-date.
3.3.4.1 problems at the accounting department
The first problem is that not all the invoices are put in the right account. When the accounting department does this it is hard to see which accounts have the highest costs and which are most ineffective. To take measures to lower costs it is important where the costs come from.
Secondly, the external accountant, B. Karimi almost never visits the HFM. It is important that he or one of his associates comes at least once a year to see how things are going. This also gives the accounting department to ask questions and make arrangements for what is the best way to do the accounting for HFM.
Also it is important that they employees keep up to date with latest fiscal and accounting regulations. Finance and fiscal policies change all the time, that’s why it is important to keep up with them.
Furthermore the accounting department has the best view on the costs of the company, it is important they get a chance to give their ideas about cost saving ideas.
And at last, it is also important that there is a systematic work schedule. The information needed for the accounting department should be given on time and when needed. They also have to be on time themselves.
3.3.5 Imports
Around seventy percent of the flower purchases are imported from other countries. That’s why a separate import department is so important. The import department handles everything with the USDA, the brokers and the flights. It also makes sure that a driver picks up the imported flowers from the airport. The department consists out of one man, P. Vela.
3.3.5.1 Problems at the import department
First of all, the department consists out of one person what makes is hard to prevent fraud. The accounting department handles all the invoices and the orders of flowers are done by somebody else so in that way it is hard to commit fraud. By keep checking everything by a second person the possibility to commit fraud will be minimized.
A second problem is that P. Vela does a lot of other stuff for the company too. He does the imports, the IT, the maintenance of most equipment and the ordering of office supplies. By doing all that stuff it could be that he has too much work and does not do every up to standard.
Another thing is that he does not make a lot of hours. He does his work for a few hours while working on other stuff and he gets paid extra for the work he does on the website or on other IT things. But he will do this in the time normally used for working on the imports. And he does not get paid by the hour but a steady salary per month.
3.3.6 Carlsbad
Carlsbad is another flower market in Carlsbad managed by M. Imber. Their sales team consists out of two people and they also make deliveries. They offer the same services as HFM in Los Angeles only on a smaller scale. The market is self-sufficient for the largest part but they buy some of their flowers from the Los Angeles market. Also all the administration is done by the office in Los Angeles and all the computer equipment etc. are taking care of at the LA offices. The Carlsbad market is in a process of moving to another marketplace within Carlsbad.
3.3.6.1 Problems at the Carlsbad market
It is hard to control everything going on at Carlsbad because it is doing everything without direct control from the LA market. Fraud is one of the things that are hard to detect because the team is really small and do everything on their own. All the finances are being checked by the accounting department at the market in LA but this still leaves room for fraud. They also have cameras at the Carlsbad market that monitor everything but there is no one that checks them regularly. Also there is some information missing about how the business is conducted exactly. For example, what happens to the flowers that do not sell?
The profit percentage is also much lower compared to the bouquet department and the Los Angeles market. The cost percentages are higher than the other departments. Particularly the collection expense, the credit card fees and the office supplies are percentage wise much higher. Also the sales have been dropping for the last 5 years.
Furthermore the accounts receivable are very high, but that is the same problem as the Los Angeles market. Carlsbad has the same policy when it comes to accounts and credit as the Los Angeles market. It is harder for the accounting department to exactly know what is going on with the customers at Carlsbad because they do not speak to the salespeople directly. Another problem is that all the purchases by the customers aren’t put on the personal salesperson account but all on M. Imber’s account. This is a problem because management can’t check the sales per person. Also it is better for motivation purposes when salespeople know they are being monitored.
Also M. Imber has a credit card with no limit. The last year the charges on the
American Express card where within the lines but according to the accounting department the
years before that they were unnecessarily high. And the charges are a lot of the time
nonessential as well. Her expenses when it comes to dinners are also much higher compared to the other managers.
One of the other predicaments is that M. Imber can be very secretive over the exact business going on at the Carlsbad market. She does not always wants to give the names of her suppliers, what when problems arise at the Los Angeles market is very important to know. Also she seems to forget sometimes that HFM is one company and that means you sometimes have to make sacrifices for the greater good. Because most times she will not want to do this other employees have a hard time working with her.
And the last problem is M. Imber’s pay compared to the profit made by the Carlsbad division. She makes 100000 dollars per year while there is almost no profit. Also her she gets a fixed salary what can cause a lack of motivation.
4. Balanced Scorecard for Holland Flower Market ; The perspectives
In this chapter the BSC for Holland Flower Market(HFM) is developed. HFM is a relatively small company and does not have a clear cut vision, mission, objectives and goals. But after spending time at HFM and its team of managers it became clear that HFM vision is becoming the largest high-end flower wholesaler in the Los Angeles area. But it has to make a decision if it wants to pursue this on selling single stems to florists or selling bouquets to supermarket chains. Looking at the finances and trends of the last years, the emphasis should be laid upon the bouquet department.
4.1 Financial perspective
As mentioned before, the financial perspective is the most important perspective for the BSC. The biggest problem at the moment with the finances of HFM are the high Accounts
receivables. The first objective should be, decreasing the Account Receivables. Engle and Hunton(2001) , proved that giving small monetary incentives to customers reduces accounts receivable. Rosenberg(2006) says that being strict when it comes to account receivables could drastically reduce the total amount outstanding.
Like said in the start of this chapter the focus should be shifted from the markets to the bouquet department. The revenue for the Los Angeles should be sustained while the revenue of the bouquet department should grow. So the overall revenue should increase. Also should the Carlsbad market be shut down. Its profit margin always has been lower than the other divisions and it is hard to control this division. It is very sensitive for fraud and with the focus shifting towards the bouquet department not very necessary for HFM.
Another important point is the profit percentage per sold product. The profit percentage for the bouquets is steady because the price wherefore they are sold are agreed upon beforehand and normal orders are almost all standing order. This way, when buying flowers they know well beforehand what is needed and can buy at good prices. And because of all the records of the sales on holidays, flower purchasing is still less guesswork than purchasing for the regular market. Buying for the regular market is insecure, it is never a 100 percent sure what the customers want. That is why it is important that a strict product
profitability is being managed. Salespeople get the prices where flowers should be sold for daily from sales manager A.Bosma and there should be much deviation from these prices.
4.2 Customer perspective
Market share has to be increased to become the largest flower wholesaler in the Los Angeles region. Not only should the sales from the current customers increase but also new customers should be canvassed. Especially the bouquet department should grow while the market holds its current market share. Last year the sales of bouquets went out of state, this momentum should be continued. This could be achieved by relieving the management team of the bouquet department of some of their tasks. They should get some extra help in the office.
Customer satisfaction should be increased, the supermarkets all already overall very pleased but the other wholesale customer could be more satisfied. HFM is more expensive than its direct competitors but this is also because of better quality of flowers. By having meetings with big clients and ask them what they like and dislike customer satisfaction can increase. Also when clients stop ordering or their orders decrease drastically, they should be asked why and if they can win their business back. This should increase customer retention.
4.3 Internal business measures perspective
First of all should the focus shift to the bouquet department, so the percentage of products from the bouquet department should increase. Also should HFM take over some bouquet products from competitors. Till now HFM only made the highest prices bouquets for the supermarkets but they could also do the lower priced ones. Supermarkets already indicated that they prefer the products from HFM.
Also production capacity should be increased and handled more effectively. This could be achieved by a day and night shift at the bouquet department. But to make this possible standing orders should be increased otherwise this would not be cost effective. Owner J. Haverkate already indicated that he is looking for a larger building to be able to increase production. By increasing production, indirect costs will reduce per product. There is more product to divide the indirect costs over.
Another important point is flower quality, higher quality leads to more satisfied customers and that leads to higher revenue. Quality can be improved to only buy from well renowned farms and keep track of how good the quality of each shipment from each farm is. HFM is already the only wholesaler on the west coast that imports its flowers by air
transportation instead of by land. This ensures more fresh flowers.
The payment process to HFM’s suppliers is already good with an average below 30 days, but this should be maintained. There has been a lot of fluctuation in the finances of HFM in the last couple of years, but this is relatively easy to maintain.
4.4 Learning and Growth perspective
One of the more urgent problems at HFM is fraud, especially at the sales department. By making staff feel more committed to the company fraud should decrease.
Better application process should be introduced so that the staff overturn decreases and training costs decrease. Especially at the bouquet department there is a lot of overturn. It will also make employees work more effective.
Another way to decrease staff overturn and increase staff satisfaction are more
meetings with human resources. This could make staff get problems of their chest, make them more satisfied and less likely to leave the company.
Also should there be a employee training budget. By training employees they get more efficient at their jobs. It can also be profit increasing, when the accounting department gets training. They will make less mistakes and maybe learn how to improve profits. This also will cut accountant costs.
4.5 Balanced Scorecard of Holland Flower Market; The processes
Holland flower market not only needs help regarding performance measurement, it also needs help in relation to strategic management. It has to exercise its vision and mission in clear-cut objectives across the company(translating the vision). First of all, upper management at HFM all have different visions of the company and put their self-interest first. They should achieve a consensus and after speaking to the whole management team, creating a the largest high-end flower wholesaler should be the vision. This should be achieved by focusing on the bouquet department and managerial focus should also shift towards that.
By using the BSC, clear cut objectives are created and these should be mentioned across the whole company. This way all the employees know where their primary focus should lay and what is expected of them. This phase is called the communicating and linking process.
When the vision, mission and objectives are clear across the company, management can link financial measures to their objectives to achieve the mission and vision. In Holland Flower Markets case the objectives are mentioned in the BSC.
And finally there should be a feedback and learning process. Because how well everything is planned and linked, when the finances are done after changes the real effect is visible. Some of the objectives will work out with their plans and some not. These have to be changed accordingly to make the BSC a success.
Figure 2: Balanced Scorecard Holland Flower Market Balanced Scorecard Project
Year 1 Year 2 Year 3
2% 3% 5% 5% 5% 5% 300% 300% 300% 35% 30% 25% $6500 $6700 $7000 18% 19% 20% $600,000 $650,000 $700,000
Target Target Target 90% 90% 90% 10% 5% 5% 5 new 10 new 15 new
10% 10% 10% 2% 2% 2% 30 days 30 days 30 days
Strategic Objectives Fina nc ia l Measurements
Summarize Objectives, Measurements, Targets & Programs Targets
Programs
Revenue growth and mix Revenue growth and mix Revenue growth and mix Cost reduction/productivity Cost reduction/productivity Asset utilization
Percentage revenue from new customers Product profitablity
Decrease outstanding accounts receivables Revenue per employee
Higher return on labor Increase working capital
C u st o m er -> Market share Customer retention Customer satisfaction
Market share by dollars Key account retention Out-of-stock percentage Innovation Innovation Operation Operation Post-sale service Operation Le a rning ->
Revenue growth and mix Sales growth of the bouquet department
Market new bouquets Increase process capability Increase flower quality Reduce process cost Payment processing cycle time
I n ter n al P ro cesses -> Overtime control Employee retention reduce employee overturn Employee satisfaction Overall satisfaction with company Employee productivity Training budget per employee Employee productivity Competency allignment
More staff on the salesteam of the -bouquet department.
-More supermarket clientele -Steady profit percantages on sales -New account receivable process -Getmore supermarket accounts -Keep customers more satisfied by good pricing and less out-of-stock
-Create more bouquets - Create better contact with suppliers and better quality check to improve quality flowers
-Stricter accounts receivable control
- Make sure employees are satisfied by having meetings and award bonusses. This will decrease overturn and fraud.
-Create a training budget per employee this will enlarge effinciy - Make sure that there is competency allignment with the function, this will reduce overturn and make employees more effivcient
5 Conclusion
The Balanced Scorecard is one of the most popular measurement tools among organizations nowadays. Not only does it give a view of a company on a financial level but also from three other perspectives, namely: Customer perspective, Internal business process perspective and the learning and growth perspective. This ensures that management gets an overall view of its company.
Not only can the Balanced Scorecard be used as a measurement system it can also be converted to a strategic management system. It is a way to convert a company’s mission and vision to lower management in clear objectives. This is done by four processes, first they have to translate the vision, followed by the communicating and linking process and then the business planning process and finally the feedback and learning process.
When all of this is done by upper management causes and effects of these perspectives and processes should arise. This will show what one action in the BSC can mean for another. Even though there is some contradiction about the verifiability of this subject.
In this thesis a BSC is made for the company Holland Flower Market. The company has grown significantly in the past 30 years and has gone true some changes. Even though the company has done well for itself, there are some improvements that can be done. The most important changes are reducing the accounts receivables, stimulate growth at the bouquet department and reduce employee overturn while improving employee satisfaction.
Another important issue is if the Carlsbad market should be shut down or not. This branch has been making loses for a long-time or just has broken even. It is hard to control fraud and with focus moving to the bouquet department not very necessary anymore. With shutting down the Carlsbad market, employee costs will be reduced. As well as less overtime for the drivers, less rent and better overall control on the company.
It will also create one vision for the whole company to achieve. It will make the company more aligned and makes clear what upper management wants lower management to achieve. HFM has grown drastically the last couple of years and probably will grow even bigger. Also with the shift from single stem wholesale to florist to making bouquets for supermarkets can be a lot to handle for a company. But the BSC can help a lot, it gives a guideline and is easily held up-to-date.
With the suggestions made in the BSC and its supporting text, HFM should improve. It has a clear vision and mission to achieve and clear objectives. It should decrease accounts
receivables and employee overturn while increase satisfaction of the employees and customers. This all should lead to more profitable and healthier company. n
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Appendix A: Total costs
2011 2012 2013 2013 YTD 2014 YTD diff INDIRECT divide by
EMPLOYEES Salary $1.893.914,28 $1.714.139,77 $1.801.863,00 $1.480.840,00 $1.433.833,00 -3,17% Officer $239.000,00 $210.750,00 $198.000,00 $165.000,00 $132.000,00 -20,00% 0,33% Outside help+Labor $54.583,34 $56.228,08 $75.584,00 $59.913,00 $63.115,00 5,34% Pension $2.200,00 $2.400,00 $2.400,00 $2.400,00 $0,00 -100,00% Commission $5.021,00 $16.416,54 $19.575,00 $14.012,00 $29.733,00 112,20% Total $2.194.718,62 $1.999.934,39 $2.097.422,00 $1.722.165,00 $1.658.681,00 -3,69%
FINANCIAL Credit card fees $59.597,10 $57.569,69 $48.933,00 $41.722,00 $39.227,00 -5,98% * sales Collection expense $2.804,92 $15.178,85 $2.682,18 $2.332,00 $1.875,00 -19,60% * acc rec Bank charges $6.499,26 $5.862,71 $6.328,00 $5.386,00 $5.050,00 -6,24% * sales Interest $14.181,48 $15.245,98 $41.222,00 $34.828,00 $27.410,00 -21,30% * sales Telecheck $3.213,00 $3.219,40 $3.154,00 $2.628,00 $2.363,00 -10,08% * sales Total $86.295,76 $97.076,63 $102.319,18 $86.896,00 $75.925,00 -12,63% *
INSURANCE General $10.473,00 $16.872,00 $14.106,00 $8.749,00 $14.709,00 68,12% * empl Medical $44.855,00 $30.263,00 $33.657,00 $28.206,00 $25.879,00 -8,25% * empl Vehicle $32.189,00 $33.689,00 $28.639,00 $23.422,00 $23.475,00 0,23% * empl Work. Comp. $47.748,00 $44.855,00 $50.348,00 $41.956,00 $51.165,00 21,95% * empl Total $135.265,00 $128.784,01 $126.750,00 $102.333,00 $115.228,00 12,60% * empl PURCHASE Flowers $6.234.899,07 $6.592.664,29 $6.908.899,00 $5.762.853,00 $5.361.380,00 -6,97% * sales Freight $1.137.363,92 $1.294.881,91 $1.331.254,00 $1.131.643,00 $1.061.159,00 -6,23% * sales Brokage fees $10.706,97 $8.121,00 $6.297,00 $6.297,00 $5.500,00 -12,66% * sales USDA fees $64.696,24 $75.921,08 $32.604,00 $36.455,00 $93.174,00 155,59% * sales Bouquet $238.627,93 $291.052,03 $324.610,00 $278.246,00 $301.260,00 8,27%
Total $7.686.294,13 $8.262.640,31 $8.603.664,00 $7.215.494,00 $6.822.473,00 -5,45%
TRANSPORT Gas $115.333,14 $135.691,28 $152.523,00 $127.593,00 $112.009,00 -12,21% * sales Lease $23.110,59 $15.244,74 $22.181,00 $18.483,00 $22.985,00 24,36% * sales Repair $49.826,30 $54.256,09 $77.024,00 $64.652,00 $42.332,00 -34,52% * sales Travel exp. $29.858,00 $28.525,00 $24.147,00 $16.676,00 $24.986,00 49,83% * sales Total $218.128,03 $233.717,11 $275.875,00 $227.404,00 $202.312,00 -11,03% * sales OFFICE Office supply $20.265,83 $16.852,87 $27.463,00 $23.157,00 $31.026,00 33,98% * sales Office furniture $45.479,00 $11.751,00 $14.559,00 $13.415,00 $17.415,00 29,82% * sales Phone expense $26.480,36 $39.728,47 $39.337,00 $31.925,00 $36.490,00 14,30% * sales Dues+Subscr. $9.891,61 $9.047,50 $9.256,00 $9.838,00 $7.133,00 -27,50% * sales Acc. Fees $10.500,00 $10.500,00 $10.590,00 8.840,00 7.875,00 -10,92% * sales
Postage $2.260,51 $2.923,43 $2.880,89 2.480,00 2.260,00 -8,87% * sales
Total $114.877,31 $90.803,27 $104.085,89 $89.655,00 $102.199,00 30,81% * sales SUPPLIES Equip repair $12.262,39 $21.485,07 $15.530,00 $14.619,00 $16.023,00 9,60% * sales Computer repair $7.299,04 $43.018,00 $43.581,00 $35.423,00 $38.827,00 9,61% * sales Computer supplies $1.168,57 $5.410,34 $2.988,00 $1.408,00 $7.219,00 412,71% * sales Market Supplies $24.382,07 $30.725,77 $45.553,00 $36.481,00 $34.560,00 -5,27% * sales Equip rental $8.203,00 $14.136,12 $34.942,00 $27.782,00 $20.806,00 -25,11% * sales Total $53.315,07 $114.775,30 142.594,00 115.713,00 117.435,00 1,49% * sales RENT Bqt Department $142.117,80 $144.384,00 $43.822,00 $37.214,00 $167.305,00 349,58%
Utilities $41.669,61 $35.807,27 $42.331,74 $36.551,00 $40.302,03 10,26% Flower market LA $144.384,00 $141.617,80 $149.624,00 $120.928,00 $138.855,00 14,82% Total $328.171,41 $321.809,07 $235.777,74 $194.693,00 $346.462,03 364,40%
Outside Outside service $6.820,00 $450,00 $6.600,00 $6.600,00 $9.641,00 46,08% * sales
Outside consul. $0,00 $0,00 $0,00 $0,00 $1.065,00 100,00% * sales
Outside service adp $3.609,32 $3.485,89 $3.839,00 $3.091,00 $3.478,00 12,52% * sales Total $10.429,32 $3.935,89 $10.439,00 $9.691,00 $14.184,00 46,36% * sales
MISC. Depreciation $28.083,00 $37.703,01 $25.742,75 $21.062,00 $21.062,00 0,00% * sales City Licence+tax $192.980,15 $169.852,40 $179.425,89 $179.425,89 $163.248,52 -9,02% * rent Advertisement $279,80 $0,00 $1.429,00 $1.341,00 $25,00 -98,14% * sales Entertainment $6.078,00 $7.077,00 $15.793,00 $15.793,00 $19.043,00 20,58% * sales Employee meals $1.125,00 $1.320,00 $2.096,00 $1.645,00 $2.923,00 77,69% * empl Security $1.200,00 $1.200,00 $1.275,00 $1.050,00 $1.275,00 21,43% * rent legal $4.950,00 $3.424,68 $56.842,80 54.163,00 13.802,00 -74,52% * empl Publ. relations $2.477,00 $15.108,17 $4.379,05 $3.873,00 $5.055,00 30,52% * sales Misc. -$264,16 $2.365,34 -$349,94 -$349,94 -$3,00 -99,14%
Total $236.908,79 $238.050,60 $286.633,55 $278.002,95 $226.430,52 -18,55% * TOTAL $11.064.403,44 $11.491.526,58 $11.985.560,36 $10.042.046,95 $9.681.329,55 -3,59%
Total empl 53 sales empl rent acc rec net sales $10.145.671,27 Carlsbad 7,99% 5,66% 13,67% 27,79% sales CB $810.225,66 Bouquet 35,60% 33,96% 41,69% 28,82% sales MLA $5.723.083,39 Market LA 56,41% 60,38% 34,60% 43,39% sales BQT $3.612.362,22 Acc rec $1.773.283,00 A.R CB $492.714,00 A.R MLA $769.491,82 A.R BQT $511.077,18 Rent CB $54.880,00 Total Rent $401.342,03 41
