In addition, there will be the opportunity cost of not having cash available for more useful requirements i.e. supplier discounts, interest income. Therefore, Willow Company needs to hold optimum levels of inventory and increase its sales in order to improve its inventory turnover and cash
When there is a delay in how efficient the company’s production can be, that will also diminish the performance of the manufacturing process. In addition to the recommendations that have been made above, I believe that the administrative offices should be updated and organized in a way that would increase efficiency in the administrative side of the company. Albatross Anchor should review their accounting system to determine if it is using software that is going
This action also reduces the amount of money that the banks are required to save in their reserves. Lowering the reserve requirements increases the money supply that is available for use to the economy and lowers the interest rate for consumers. This action assists the economy by providing more relaxed funding for all consumers and aids in sparking economic growth. Consumers are able to spend as needed with more money available and easier funding by the banks. This action allows success for both businesses and consumers alike.
Both would incur costs, but implementing an automated inventory tracking system will save time. An automated supply chain system would be significant to ordering products in a timely manner and the correct amount of products. Inventory tracking and ordering have been manually managed by one person who is the owner of Kudler Fine Foods. New Technology will reduce time spent on manually ordering products, performing clerical duties, and focus on the hub of managing the
How has technological innovations affected your organization? Technology impacts the cost of production. Technology helps in lowering the cost of production and making economies more efficient – producing more outputs with the same number of inputs. Producers learn more about various aspects of production in which they specialize, and this attitude of them leads to more production. Innovation impacts the cost of production as well.
It also provides customer support in the form of consulting to these customers. HubSpot has reached a point where the company can provide limited service to a diverse set of customers thus needs to consolidate and target a specific group which can provide highest utility for its efforts. HobSpot should consider the expected Consumer Lifetime Value while selection of the target markets and should consider various ways to maximize it. Key implication of narrowing the target market is better service to the customer which will result into increased retention rates. As we know increase in retention rate in the customer segment has a significant positive effect on the CLV.
The price elasticity is important in business because it refers to the change in quantity demanded to the change in the price of a service or product. Elastic demand is a change in the price of the service or goods that can affect the demand. Will Bury product is different, and the success of his product can assume that the price can be elastic for his product. In the market, there are similar products that are available for different prices the lower the price may work out better in attracting new buyers. However, in Will Bury situation he may have to raise prices and sell more items to bring in more
9). The rotation of perishable goods can be improved by conducting a survey and a questionnaire to the customer to indicate the needs of customer. Analyzing a turnover ratio per capital of each product will minimize the perishable rates. If a proper turnover ratio were set for the operation of buying and stocking of a product, KFF can easily expect what to expense and when to allocate the budget cutting the loss of excessive supply of the product. Specialty Shops Because KFF offers sophisticated professions such as butcher, baker, and wind steward, “payroll of these specialty positions is higher than that of the clerks and stock personnel” (KFF strategic plan, p. 9).
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.
If the JIT system is adopted, what changes, if any, should occur in the relationships between Ballenger’s firm and his suppliers of components? Discuss. If JIT is adopted, the relation between Balanger (manufacturer) and suppliers of components might be a concern, as suppliers must be considered to be the part of production team as per tenets of JIT. In normal case Balanger used to purchase components from suppliers who usually go out of business and it was more flexible for Balanger. As the suppliers have to provide components of higher quality, the overall costs might increase.