However, that market is high competitive and almost commodity-like. Company A would need to consider reducing its labor force or even moving its operation to low cost-region in order to be competitive in the iPod/iPhone headphone market. Another new customer group is the people who use noise-cancellation headphones. There are limited players in this market. Also, the quality of noise cancellation headphones vary a lot and the customers are willing to pay higher price for good product.
The economy in which the read-mix industry operates may have a potential slowdown. Despite Alliance’s success and potential growth, the company is facing with a difficult decision to choose between renegotiating debt obligations, postponing long overdue capital improvement, or reducing the dividend payment to National. Being a ready-mix concrete company, Alliance’s obligation is to have their product deliver to the customers on time. However, the main issue of Alliance Concrete is the negligent to upgrade their old equipment which cost the company $2.6 million and two-week shutdown. Thus, Alliance needs to focus on improving operating efficiencies by investing in capital improvement.
People are far more likely to send an email or text message than writing someone a letter, so the USPS must adapt. Source A suggest that the post office needs to get into the electronic business. They could start by assigning each person an email address from birth. There are also a great number of ways to advertise online. They need to make it more well known that their lower prices are helpful in these economic times.
This will be useful for Guillermo Furniture because it can help them to determine the possible outcome of the two different decisions they have to make in order to increase their capital and become more of a competitor in the marketplace. One choices that Guillermo Navallez has it to convert his current production model to a high tech solution. Utilizing a computer controlled laser late in order to make precise cuts (Guillermo Furniture, 2012). This will make it so that they can move pieces through assembly quicker. This will be an expensive investment, by utilizing a sensitivity analysis Senor Navallez can determine if it will be a good return on his initial
I do not know how big the stores are, but what if we can decrease the number of employees and train the ones they have. Short- or Long-Term Focus Main goals for Tanglewood are further expansion and improving customer service. It is more appropriate to use long term, but we have to have talent management programs. Company has to make long-term goals, because they are harder to achieve. With long-term goals, we would have short-term goals and achieving even more.
Sample Test Questions: CH 5, 17 Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The MOST likely example of a batch-level cost is: 1) _______ A) utility costs B) product-designing costs C) machine repairs D) setup costs 2) Factories producing a more varied and complex mix of products have higher costs than factories producing only a narrow range of products because: 2) _______ A) they require more direct laborers B) they require more engineers C) more variations and complexities require more activities D) they buy more robotics Answer the following questions using the information below: King Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways. Small Department Large Department Square footage 6,000 18,000 Number of employees 1,120 480 Sales $400,000 $2,000,000 3) If total rent expense of $120,000 is allocated on the basis of square footage, the amount allocated to the Small Department would be: 3) _______ A) $20,000 B) $84,000 C) $30,000 D) $90,000 Answer the following questions using the information below: Mayan Potters manufactures two sizes of ceramic paperweights, regular and jumbo.
Making sure that product is manufactured on time (taking into account any delays that may arise from overseas manufacturers) and ready for distribution when the consumer needs it. It is very hard for the dealerships to be able put their names behind a product that is difficult to keep in stock as todays consumers are on a “I want it now” basis. The advantage to this strategy is that if you have marketed and advertised properly, there will be demand at the dealerships from your product. If you are able to keep the dealerships properly stocked, then they will be pleased, as well as the customers and you will make your money back from all that costly advertising. A disadvantage would be that it will take resources to be able to keep items in constant stock and staff to ensure that logistics is running
Therefore, the main challenge Innocent might face is to trying to increase the demand. To increase the demand they might have to lower the price of the goods. This means that they need to provide cheaper price so that customers can afford. Innocent also need to create or develop new products to add extra value. They might go to talk with customers to observe what products they buy and how much they pay for it.
However in the long run they can use more time and energy to look for alternatives. Therefore they respond to price changes significantly. Here, television is a durable good and paper towels are non durable goods. Price elasticity of paper towels would not be larger in the short run because consumers will react very slowly in the short run for non durable goods. However in the long run consumers will realize the effect of changes in price and they will find new alternative products like kitchen towels or sponges etc.
Micro Devices Division 1. The “excess” capacity of the facility is associated with four causes Long term yield: the solution is to change the calculation into the new available capacity. With the production that exceeds the demand we could have an improvement in marketing and selling part. Also, can have a discount rate for large quantity selling or cash payment, etc Short term yield: The company should hold extra capacity in order to make up for statistical fluctuations in earlier operations. A buffer inventory will protect constraint from a work shutdown caused by a shortage of processed materials coming from upstream workstation or by the fluctuation of the demand Product mix changes: Introduction of new products could lead to the purchasing of additional equipment which lead to an incremental increasing in fixed cost.