$500 (= $25 ´ 20 radios not stolen due to hiring 1 guard) c. 4 Chapter 4 Applied Problem 1. a. The intercept a is expected to be positive because even if no advertising is undertaken, some sales are expected to occur. b is expected to have a positive sign since Vanguard's sales are positively related to its level of advertising expenditures. Vanguard's sales should be inversely related to its rivals' expenditures on advertising, so c is expected to be negative. b. a is the sales of Bright Side detergent when neither Vanguard nor its rivals advertise.
They believe customer is a valuable asset to their company and they are willing to make less money from products in order to build a relationship with clients, so they will come back to the store again in the future. 3. The six components of retailing mix are product, place, promotion, price, presentation, and personnel. They
Goal Definition: Advise Management on the various options regarding the outsourcing contract and the decision to proceed with JAFAR contract. Quantitative Analysis: • Exhibit 1 shows the effects of the external procurement of CTR1 units. Accepting the outsourcing contract was overall unfavorable to Seagull as it is costing the company $600K per year. • Exhibit 2 shows the net income effect if the outsourcing contract is cancelled or modified. Reducing the order to 2 000 units is the most financially favorable option for the company as a whole.
PepsiCo has shown the best current ratio and is able to pay off their debts, which Coca-Cola does not have that and is struggling to pay off their debts. However, Coca-Cola has a higher retained earnings percentage, which means that it is able to have funds available for future growth of the company. The hope for both companies is to provide their financial statement with better information presented over their competitor giving the ability to earn more investors. PepsiCo and Coca-Cola do not need to be at war with each other as they have what it takes to get people to use both products, no matter what. Keep in mind, that it is the people’s choice whether or not to support a company and decide whether to invest in the company not competing against each
It would also show our company’s commitment for the environment by using recycled materials verses material that consists of lead. Producing the whistle from recycled plastic product is less costly and would accelerate the production to meet the timeline for distribution. Most importantly, provide the children with a quality risk free product. The disadvantage to changing the material makeup of the product would be if the group purchasing the product wanted the initial material without the option to substitute. The financial impact of the alternate product would be less than the initial $100,000 which would assist the company in minimizing their loss.
The major quality that Wal-Mart possesses is its ability to adapt and change according to the needs of its customers while striving to keep prices of goods and services low. With annual sales of about $300 billion, around 68% of the sales come from Wal-Mart Stores, 19% from its international operations, and 13% from its Sam’s Club. Wal-Mart’s annual profits are about $10 billion and they have a market value of over $250 with assets worth over $105 billion (Mujtaba & Maxwell, 2011). This success has hurt many competitors in the process but their success is an example that many manufacturers and businesses should use as a case study to perfect their own inventorial
Redbox pursues a low-cost provider strategy by striving to achieve lower overall costs than rivals on products that attract a broad spectrum of customers. It was able to achieve low cost by installing kiosks the cost of which is $15,000 with five years of useful life. The price competition among rivals is vigorous. There are many rivals who are selling similar products, but hardly anybody can offer the same price per DVD with no late fees. Moreover, the convenience of locations saves customers’ time, energy and money, taking into consideration that the rental fee of Redbox is “dirt cheap.” Through its successful strategy execution, in 2010 Redbox had 22,400 vending kiosks in the United States, Puerto Rico and United Kingdom.
If Datril decides to employ the second option, I do think they may be able to gain some market share from Tylenol’s existing customers, however if the drugs are identical, the only competitive advantage is price. Unfortunately, price is one the easiest advantages for a company to counter attack. Because Tylenol is the market leader of acetaminophen, they can employ the defense strategy and be successful in their counter attack Bristol-Myers. If Tylenol lowers their prices to match Datril’s, there will be no advantage in the market. The other risk with this option is the longevity of any marketing materials created.
The comparison of overhead costs for Polynesian Fantasy and Vanilla by the two costing methods is: Polynesian Fantasy Vanilla Old Costing method 5.6 5.4 New Costing method 9.06 4.65 Change (New-Old) 3.46 (0.75) There won’t be any change on total company profits. But it will be some differences on individual product between applying two methods. What should Will do The new method (Activity-Based Costing) attempts to provide a better model of the cost of producing products or providing services and delivering them to customers. It promises to depict costs more accurately through a deeper understanding both of the activities involved and the resources consumed by each of these activities. Will should use Activity-Based Costing.
Q1. Is the Zara model sustainable? What would you do to preserve their edge over the next 5–10 years, given that many other players are now looking to follow their example? If you don’t think it can survive, give your reasons for why you think the model is unsustainable and will fail. Before deciding on whether or not Zara model is sustainable we must look closely at this model, Zara model is built on strong innovation system, this system utilizes both technology pull and demand push to create a product of high quality at a competitive price along with distinguish service in short amount of time.