Research and summarize the capital and operating costs that are typical for magazine

PURPOSE AND MISSION

Having carried out a well consulted research that entailed cost minimization through both outsourcing and in-sourcing decisions , the main purpose of this report is to give direction pertaining , situational analysis , product cum market analysis financial analysis and then minimization of costs of operation through insourcing and outsourcing of various processes . This is in line with our plan which endears our magazine business- BizMag- to survive , grow and ultimately operate profitably . We have therefore identified various processes which we believe if we outsource , we are able to save on

a number of costs and minimize the number of cost centers relevantly . The cost centers we have had are : Accounting , Editorial , Publishing , Printing (Production , Sales and Marketing (Promotion , Advertising , Distribution , Pricing , Auditing and General Internal Management (http /www .google .co .ke /search ?hl en q streets in state of Florida US

PRODUCT , MARKET ANALYSIS

Our main product , the Business Magazine , has a wide market having customers throughout the whole state of Florida . This is a considerable market coverage which therefore requires a huge capital outlay to enable production of that output which can meet market demand

BREAK-DOWN OF THE COSTS FOR THE IMMEDIATE PAST FOUR QUARTERS

FROM MARCH 2007 TO FEBRUARY 2008 OBJECTIVES

With the light of the above , and specifically in relation to costs minimization , the preliminary Group 's objectives are as follows

To save 30 costs through outsourcing of some processes and thus raise additional `silent capital ' of 5 ,160 in the next one and a half years to guarantee continued growth and a cash reserve to market subscriptions effectively and efficiently . This minimization is broken down as follows

In the sales and marketing , we shall relegate supply and distribution of our magazines through an established news publishing firm , Digital Era Times Daily . We established that by doing this we are able to save up to 40 of the reap from the established image of the Digital Era Media Group thereby boosting our own sales and market command

Given the efficiency in supply and distribution , our sales are projected to increase by about 23 . In the long run , we will be able to benefit from economies of scale

Instead of having distribution outlets , we will resolve to contracting vendors . This will cut on rental expenses by about 25 from the initial 260 outlets . We will rather increase the number of vendors to 3000 throughout the state of Florida

We will contract outside business partner for 40 of the printing work

To maintain our over 30 ,000 subscribers throughout this period of expected low performance through direct sampling and marketing . This will enable the

To save an additional 10 costs through process insourcing . This

To maintain sales of 3 ,000 constant two-year subscriptions in addition to other sales

To issue a 36 page publication initially with press runs of 25 ,000 promotional copies each

To cut down the 96 page publications to 48 pages , and boost press runs to 50 ,000 promotional copies

Maintain a figure of 80...