* Product lines that were not covering their avoidable costs could be dropped. * New product development is likely to receive more focus as the review program identifies areas of increasing demand. * Gourmet is likely to benefit from better monitoring of competitors’ product development, prices, and market share trends. F. This is an open-ended question; the specific steps are likely to vary based on the circumstances and the information found. Analysis for a given product might include the following general steps: * Identify the product to be analyzed by using a quantitative monitoring technique (e.g., size decline in contribution margin or sales) or some other method * Obtain and analyze detailed revenue and cost data prior periods; look for negative trends * Obtain and analyze the correlation of sales for this product with other products; look for potential relationships with other products that might influence a decision to drop the product * Obtain and analyze industry information about the product; look for information about trends in customer tastes, competition,
The distributors also had an eye on Barilla’s inventory and placed orders for products whose level fell below a specified level, thereby fluctuating the demand. * Centralization based on the data obtained from distributors help to schedule production for Barilla and reduces inventory, which benefits everyone. Therefore, cheaper production and distribution costs for Barilla. When Just in Time Delivery was implemented in Florence warehouse, lead time from the time of order to delivery reduced form 10 days to 3 days. * It improves the relationship between Barilla and its customers by increased supply chain transparency and helps to build trust.
* Diverse products Diverse products and revenue should help shield the business from shocks in any one part of their business. Different products have different characteristics. Those characteristics do not always match; therefore, a company can lower their risk by investing in a business with low correlations with other products. This lowers risk and increases the value of the business over the long-term. WEAKNESS: * Company size "Company Size" will have a long-term negative impact on this entity, which subtracts from the entity's value.
Figures on the cash flow forecast at this point will look very poor. Therefore it is important for the company to make sure that they are making enough money from the products that they are selling and haven’t under-priced them if they have used expensive materials. If the materials are too expensive then they must make sure that they have looked into buying cheaper material as long as this doesn’t affect the quality of the product that they are selling or this may also affect how well the product sells. Expenditure Changing the company’s expenditure will have an effect on the profit or loss it makes. If there is a large increase in some of the figures of the expenditure, it could mean that there would be either a large decrease in the profits made by the company or that the company’s loss figure has increased suddenly.
However, income is the main factor that will decide the average consumer’s decision. If a new study was revealed (hypothetically, of course) that there are severe adverse effects from the consumption of Acetaminophen in general, substitute goods would gain an advantage in the market. Ibuprofen and Aspirin treat nearly all the same symptoms that Tylenol does, and as a result can be considered substitute goods. Another shift along the demand curve is the general taste of the consumer. There are many factors that affect this.
A more difficult and time consuming effort Huffman could take to reduce exchange rate risk is to spin the rate to your advantage (Prinzel, 2013). This means when USD exchange rates are high, Huffman would need to ensure their customers are aware of the benefits they could be receiving in discounts. Relative to Huffman Trucking’s benefit with this approach, they could buy foreign exchanges when rates are low, similarly taking advantage of the same benefits their customers would
Advertisements use the word help to make us think that the product is able to stop, eliminate, end, solve, or heel according to Lutz. When in actuality help means the total opposite. Advertisements usually put this word in front of very powerful words so that consumer doesn’t pay attention to the word
The basic necessities will always be bought by consumers no matter what the economy is doing. Companies within the sector do not have as much potential for immediate growth but provide steady growth over time. The relevant macroeconomic factors that affect information technology sector are economic, legal/political, technological, socio-cultural, demographic, and international. The economic factors that concern this industry include unemployment, consumer sentiment, and inflation. The consumer staples sector need consumers to be employed: so the consumers will have money to purchase more products.
Supplier Selection at Casturn Systems (A) What are the benefits and disadvantages of the re-sourcing process in Figure 1? Benefits: * Provides an opportunity for Casturn GMC to find out multiple suppliers’ price point. Casturn CMC can then discuss and gain understanding of the cost structure with suppliers, and further negotiate a lower price for Casturn. * Through e-RFQ, Casturn CMC is able to obtain price quote from a number of identified suppliers efficiently. Disadvantage: * Technical evaluation after price negotiation causes an unfair price competition during auction between high quality suppliers and low quality suppliers.
Do you think Altera’s new strategy will be successful? What are some advantages and disadvantages of the new strategy? Yes, I think their new strategy will be successful, because their new strategy offsets some of the risk associated with carrying too much inventory, since they only build finished products to customer orders and build die banks to stock. The intent of this strategy was to improve visibility into customer information, inventories and build plans, facilitate product development collaboration, and improve Altera’s inventory management. This allows them to reduce safety stock levels and inventory holding costs as well.