Arijit Singh recently purchased a Bolbo car and fell in love with it – to the extent that he renamed ahimself as Bolbo Arijit Singh. Yet, he stuck to his business plan of releasing albums. He estimated the yearly cost in producing his next album to be INR 1 crore. Sales were estimated to be INR 2 crore. On the close of the year, he got a report stating cost was INR 1.5 crore and sales was INR 2.25 crore. He was happy as album sales had exceeded the targets and awarded bonus for the staffs. For the second year, he created two new albums. The second years report stated the costs to be INR 3 crore and sales as INR 4.5 crore. Like always, he is happy to award incentives to staffs and feels that profit margin has been maintained consecutively.

(a) Suggest, if any, measures to Arijit’s business for further improvement along with reasons.

(b) What other factors do you think are essential while doing business analysis and awarding incentives?