Without prior market penetration of an organization’s competetitors, the usefulness and effectiveness of properly marketing a new product or service can be quite burdensome. This is due to the fact that an organization runs a major risk of constantly striving to maintain its customer base, as the new type of product or service has not yet been introduced into the maintstream. Additionally, pricing may be an issue based upon: Should pricing be very low to attract new buyers?, or Should pricing be set high to offset initial entry into a new marketplace? These are the questions that an organization must face, but for the most part, being a
This can make expanding and growing very difficult and decisions must be mad wisely. When it comes to their products that are purchased around the world to ensure high quality, expanding may affect that quality, making it hard to supply a specialty product. Going public through an IPO, may change the very decision made that make their company special, or it may enhance their products by providing more resources. Acquiring another company in the same industry to help their company grow could cause increased financial stability or increase their financial burden. Kudler can merge with another organization in hope to expand while implementing their mission and values on that organization or that organization may hurt their reputation.
This would explain the difference in gross profit and sales revenue. 2. The economy seems to be a concern as; people are not flocking to the best of the best any longer and may be searching for alternative products. In tough times even a strong market share can erode with the search for comparable products at a lessor price. It appears that this very issue may be vexing Elite.
Another external threat includes economic slowdown. The economy can play a direct role in the success of an organization, and should be monitored accordingly. Another external threat is currency changes which can affect business and sales in other countries, another area that should be monitored closely. With limitless external opportunities in markets online CanGo has room to expand in multiple markets outside of online gaming, books, and the music industries. With online market growth the opportunities for CanGo are endless, a very important factor to consider in the company’s future growth.
TCO A) Describe three disadvantages of budgeting. Which disadvantage of the three that you described is the most detrimental and why? (Points : 15) Budgeting can be a very useful tool but it can also be very difficult to achieve. There are quite a few disadvantages or weaknesses related to budgeting, three most important are 1) managers set goals that are unattainable, off target, and unrealistic, 2) the budget takes too long to prepare, 3) budget is prepared using different methods each year. The most detrimental of these three is when managers set unattainable budgets.
Fewer companies are willing to enter the market because of the SOX requirements that make going public too costly. Plus, the maintenance required to stay public is too expensive for smaller companies, forcing companies to look elsewhere to raise capital. Rising costs persuade large numbers of companies to exit the public markets to sidestep SEC regulation, creates two problems. First, the overall economy could suffer because corporations limit investment projects due to the higher-cost sources of capital to fund potentially new operations. Second, financially stressed companies that go dark are the very companies’ shareholders need to monitor usually and where transparency is most important.
A portfolio analysis help a company with making decisions on what products that they must considered to be the main focused and which one they should get rid of. The portfolio analysis raises the issue of cash flow availability for use in expansion and growth for products in the organization. The BCG Matrix and the portfolio analysis would benefit a company to see where they stand with their products and where they should put more focus on to bring that particular product up in the market. Even though there are products that are doing well for the organization they can also become problems. The economy is going through some tough times now and it could be hard to keep the stars the stars and the cash cow the cash cows (Portfolio Analysis,
In-depth research and analysis needs to be conducted on other companies that have created similar successful programs. They need to determine what the breakeven point will be, and when these new products will start generating a profit and then make the decision on whether or not it’s worth the investment. Issue 5 Lack of planning CanGo is in rapid development, but at the same time lacks of any sort of planning. CanGo's management team cannot seem to reach a viable solution for the future development of the company. Recommendation 5 CanGo needs to make a comprehensive analysis and then decide on a long-term development plan.
Kudler would be able to use an ERP to forecast future needs to assist with accurate purchasing, track vendor and retail pricing as well as other financial information. The ERP would allow Kudler to track the sales performance of new items that are introduced to determine if they are products that they want to bring into inventory. The investment in new technology is highly recommended. New technology may be an option for Kudler, however, cost of the purchase, installation and training would be a major factor which would influence the decision as oppose to upgrading current
Marketing research will uncover for Kudler not only the products desired but [For parallel construction, "not only" must be followed by "but also" later in the sentence] the price consumers are willing to pay for each item. A product may be desired [Passive voice ] but if consumers aren’t [Write out contractions] willing to pay a price high enough to provide Kudler a profit it must be taken [Passive voice ] off the shelves. However, Kudler may find through market research that offering consumers the ability to order specialty items may increase