Finance part of a Executive Memorandum Case Study

Finance part of a Executive Memorandum - Case Study Example With the increased market niche, more fans will attend the matches and more revenues will be realized. Consider the following projected financial position of the organization in 2015 and 2016. This projection is aimed at increasing the present revenues and profits through advertising and increasing the market niche by capitalizing on the anticipated popularity increase in tennis. Unlike 2014, which recorded losses, the above financial forecast for 2015-2018 can be achieved if the losses incurred are minimized such that the sponsorship given by the WTT is invested in other activities. This will make the organization financially sound even for the interested investors to bring their money in the organization. Similarly, the aspect of increasing the price of tickets should be avoided instead various management strategies such as marketing and satisfying the needs of the already identified market segment should be implemented. Various incentives such as drinks should be made affordable during the matches. This will increase the number of the fans thus enabling attainment of the set goals and projections. The aspect of market segmentation and advertising is fundamental in these financial plans since it serves as the driving force to the realization of increased market niche and consequent increased revenues. Since the organization is â€Å"pass- through entityâ € , the net income realized in the period 2014-108 as indicated in the financial plan will be passed to the owners who will be taxed at individual basis. The profits ratios from 2015 through 2018 indicate theta the organization is viable for investors. The margin range of 0.55 and above is a good indication of the organization’s positive progress. If the owners sustain this trend, then the profit margin is expected to increase in coming years and this will assure the owners big profits. In this case, the organization does not experience a