On the fixed overhead side, they could eliminate the variable overhead of their department or administrative cost by shutting down their steel rings operation or by not pursing to introduce plastic rings into the market. Hans should not make a decision of which strategy to pursue based on the overhead cost. He should base his decision on which alternative is most profitable. PWI has a large inventory of steel rings and special steel. Their dilemma is to sacrifice their inventory and introduce the plastic ring or wait until the inventory is reduced prior to introducing the plastic ring.
I needed to make sure I would make enough money by charging a certain amount per cup in order to afford the ingredients needed. The cost of products can also be considered a variable due to the fact that supplies can spoil and the need of products can drive up the cost of my supplies. Another variable in determining price per cup is the weather. The hotter and more humid the weather is, the more customers are willing to pay per cup. When there is a cooler temperature, the lemonade is in less demand therefore in order to cover me costs and make money, I would need to charge less.
The situation and site factors involved in Global clothing industry’s location is it needs to be in a non polluted place because it needs to be the clothes made should be clean. The situation and site factors involved in Coca cola industry’s location is that the industry needs to be near the city for easy goods transportation. The situation and site factors involved in Bioscience industry’s and Biochemical industry’s location is that it needs to be in a far away place because they dump a lot of harmful stuff in the ground which may poison the water, soil etc.  Now pick an industry and describe how its closing would affect the town’s economy. Would the jobs lost in the closing be the only effect?
Both strategies failed, therefore it is necessary to analyze what were their mistakes. • Core Competencies: Trexel has the know-how to development of different product better than its competitors (lower production cost), so it is necessary to consider the cost savings of the different alternatives. • Competitive Advantage: Because of Trexel has the know-how to produce high-quality products at low production cost, they are better positioned that its competitors. Also Trexel have protected their intellectual property through patents, which allow maintaining a sustainable competitive advantage in the time. For these reasons, it is necessary to analyze the competitive advantage of the different options presented.
The arguments for and against the restriction of the sale of gin during 18th century England where generally based on health and moral issues in society. The underlying issues about the restriction of the sale of gin in the 18th century were not either health or moral issues, but rather economic issues in society. The economic issues concerning the sale of gin had a majority of individuals argue against the restriction of gin because the profits of businesses would decrease if gin weren’t allowed to be sold. Though, some would argue for the restriction of gin with economics being an issue by stating that restricting gin would increase profits in other products like beer. All the individuals that argued for the restriction of gin with a morality issue was for the restriction in the sale
ANALYSIS The “Blue Ridge Spain” case study introduces several individuals and organizations. In order to analyze the situation and provide recommendations, I will specify the main issues from their various perspectives. Delta’s senior managers were not keen on JV’s because they viewed them as time-consuming, and also an inadequate means of developing new markets. Delta was persistent and hungry for growth, owning strong brands that could support expansion into overseas markets without the need for local partners. Rather than form joint ventures, Delta preferred to hire local managers directly, or transfer experienced managers from their other divisions around the world.
Hire or develop new talent. From the case it appears that Tanglewood has some inconsistency in management styles between the new stores and the original stores. I would advise them to develop new talent and hire within the company. The company has such a strong philosophy, and in order to continue with that core philosophy, I believe they should develop the talent they have with individuals who are already familiar with company expectations. Based on the reading, Tanglewood expanded by purchasing already established stores instead of building new ones, which left them with employees that were familiar with retail but had a vast contrast to their existing management core beliefs.
- Terry thinks about outsourcing the cast housings. The vice president of Manufacturing is opposing the changes suggested by the purchase manager arguing that the old company’s strategy is the key of success. MAJOR PROBLEMS: - Muenster Pump Company appears to be a small family business, with two- generations experience in manufacturing high-quality agricultural pumps but lacking experience with adapting to new marketing conditions. The evidence is given by the opposition of the VP in manufacturing to the purchase manager’s new ideas. - The main problem is the make-or-buy decision with respect to cast housing.
As for foreign markets, I would suggest the method of licensing. This way Travel Wise can avoid the costs and risks of opening an overseas market and can avoid having to put time and money into researching a foreign market while still making a profit/garnering royalty payments on their product. Since Travel Wise already outsources the manufacturing of their current products and has good relations with their foreign suppliers, it would be wise to outsource the clothing to suppliers overseas. Building a manufacturing facility in the United States is costly and would require a lot of planning, and would be a better idea to add to long-term plans. Another reason to outsource the clothing is labor costs—the book states that labor costs in China (a country that Travel Wise already does business with) are less than $1 an hour, as opposed to $24.59 in the U.S. 2.
Aldi had to come up with new and better strategies to tackle the stiff competition in UK and Switzerland and remain competitive among the existing competitors, Migros and Cooper, in their local market. Cultural differences in UK influences how Aldi decided to upscale their product range as well as providing a higher level of services to the customers. In UK, low cost or low prices are perceived as poor quality. Therefore, Aldi had to make adjustment to its prices and quality of products so that people’s perception of Aldi’s past reputation of an ‘underclass-discounter’ will changed overtime. In September 2012, Aldi has announced that they are increasing the price of milk again (Ford, 2012), this has also given Aldi an opportunity to improve its image of an ‘underclass-discounter’ in the UK and Switzerland.