Chris Tyler Owns and Operates Surf's Up,a Shop in Florida

question 10

Essay

Chris Tyler owns and operates Surf's Up,a shop in Florida that sells surfboards and beachwear.The shop has been very successful,and now Chris is thinking of manufacturing his own brand of surfboards.Chris discussed the following with you:
1.He plans to add value by making boards that are easier to maneuver and faster in the water.
2.Chris wants to purchase high-quality materials.
3.He wants a logo that will be distinctive and recognizable.
4.He would like to implement efficient manufacturing processes that will enable him to quickly produce the boards when an order is placed.
5.He feels advertising is important.
6.Chris believes in customer satisfaction and wants to have courteous and efficient service for his customers.He also would like to develop a website to establish Internet customers.
7.Because Chris believes in customer service,he would like to provide a warranty service offering a free replacement if the customer is not satisfied.
8.Chris will need to hire and train employees to make the boards.
9.He will need legal advice when applying for a trademark and signing contracts.
10.He wants a computerized accounting system that also provides customer information and the ability to develop management reports.
a.Identify from the value chain the primary processes that add value to the surfboards.
b.Identify the support services that are part of the same value chain.

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Definitions:

Inventory Days

A financial metric indicating the average number of days a company takes to sell its inventory, reflecting inventory management efficiency.

Net Credit Sales

The total value of sales made on credit, minus returns and allowances, during a specific period.

Average Inventory

A calculation that reflects the average value of inventory over a certain period, often used for financial analysis.

Vertical Analysis

Vertical analysis is a financial analysis method that expresses each line item in a financial statement as a percentage of a base figure from the same statement, facilitating comparison.