Bates: “…their proposal is that we should increase our advertising expenditures by 225,000. They suggested that we put the entire amount into our consumer advertising program for ads in several shelter magazines…” (Kerin & Peterson, 2010, p. 301). Berry: “The increase is slightly out of line with your policy of budgeting 5 percent of expected sales for total promotion expenditures, doesn’t it? Hasn’t John Bott [vice-president of sales] emphasized the need for more sales representatives? “(Kerin & Peterson, 2010, p. 301).
Robert Young of Liquidnet Canada said, the merge wave inspired the patriotic feeling of Canadians, like what did by Singapore stock exchange group. But some person didn’t agree with them because of almost 40% shareholders of TMX are not Canada citizen. Until July of this year, Maple Group finally successful merged with TMX by purchasing a minimum of 70% and a maximum of 80% at 50 per share of the TMX Group. This merge brings both benefits and hurdles. First, we look at the benefit to TMX group.
Alternatively, $499 and $600 are also being considered. As we consider the price for the new guitar, we need to keep in mind that Guitar World will be receiving 40% of the sale price from the wholesalers and retailers. Problem * In order for the new product line to be successful, we will need to calculate the break-even point in both, sales and units. This needs be done for all 3 price ranges, $499, $549 and $600. * We will calculate the net profit for the sales target of 2000 units.
By having rapid timing and synchronicity, Zara spends its money on things that can help increase the responsiveness and speed of the chain. Zara can reduce inventories and forecast error by postponement of the decisions after knowing the trends. The apparel industry cycle time has averaged more than six months. For five to six weeks cycle time has been achieved. By having this speed Zara can introduce new designs weekly and every three to four weeks 75% of their merchandise is displayed, which matches the customers preferences more than competitors.
Instead of the typical industry members who offer high quality leather products as well, but charge a higher price, Coach looks to create “accessible luxury” in that it wants to create a high quality product at an affordable price in its factory stores while still catering to higher end consumers with its full-price stores. Coach also has a desire to make customer service a high priority, as we can clearly see when we look at their return policy for products. This is one of the reasons why Coach was able to increase their net income from $16.7 million in 2000 to $880 million as of 2011. When we look at the strategy that Coach has we see that they are able to have the factory stores and then they also have their
Rather than lose $13,000 per month, Burton could rent his rig (and receive $15,000 per month) and drive trucks for another firm (and earn $5,000 per month). With this use of his resources he would earn $20,000 per month. Or, Burton could try his luck as a singer in a rock band. 6. a. Some Marriott franchises are shirking their responsibility to maintain high quality hotels, and this shirking damages the reputation of all Marriott franchises.
The Dim Lighting Co. Case Analysis Problems Macro: The macro level issue to consider is how The Dim Lighting Co. will address the 15% decline in profit margins over the last year. On one end, Jim West can become reactionary and allow another company to develop the technology ahead of time. (Brown, 2011, pp 36-37) The issue with this is that when another company develops the technology The Dim Lighting Co. will fall behind and further profit decreases could ensue while the company tries to catch up. Responding proactively will require that Jim West goes to corporate with Robert Spinks proposal, attempting to gain funding for the project. Micro: There are two issues associated on the micro level.
A faster installation time means an increase in the amount of jobs plumbers complete in a year. According to the case, plumbers install 40 to 50 showers a year and each installation takes 2 days to complete. With Aqualisa’s new Quartz Shower, installation would be done in half a day which could possibly increase profitability by allowing plumbers to complete 4 jobs over the course of 2 days. The faster installation time would translate to 160 to 200 potential installations per year. Customers The results of the market research conducted by Aqualisa showed that customers did not like the showers available on the market, they wanted showers that were visually appealing, easier to use, have the desired water pressure and featured better temperature controls.
In July 1974, Cook and Magers had another problem need to solve: Their big competitor, Bosworth Machining Company lowered price from $2.45 to $2.25 per pieces on the product of 100 series. So, the two main discussions involved: should the company drop 300 series product line, and reduce the 100 series product selling price. Cook decided to continue producing the 300 series which he made the right decision. From the report showed on Exhibit3, some costs are variable cost but some costs are no variable costs. It means no matter the company produces or not produces, the company still needs to expense some fix costs such as rent, machine depreciation, equipment loan interest and other factory costs.
Problem Statement Herbert Waters, newly hired General Manager of Superior Manufacturing Company, must make the decision whether to continue production of all 3 product lines or to discontinue product 103. He also must decide if it is beneficial for the company to lower the price of product 101 to compete with competitor pricing while still maintaining profitability of the company. Background: In 2005, Herbert Waters began as general manager of Superior Manufacturing Company during when then company was going through a difficult time. He was appointed when the moral of the organization was low after the recent death of the company’s founder Richard Harvey. Paul Harvey, Richard Harvey’s son took over as president of Superior Manufacturing Company after his father’s death with little business experience.