PROBLEM SET 1 1. Use supply and demand analysis (including diagrams) to indicate the effect of each of the following events on the price and quantity sold (at retail) of gasoline. a) OPEC lowers oil prices. b) New federal regulations require refiners to further reduce emissions. c) Federal government imposes a price ceiling of $2 per liter to stop price gauging d) Toyota launches a new superhybrid vehicle that gets 50 km per liter.
If the sales outlook for the coming three years was only 20,000,000 and B.E. continued producing at the rate of 30,000,000 units, a total of 10,000,000 units would be dumped into ending inventory at the end of each year once again reducing costs of goods sold and falsely increasing income. By the end of year 2013, B.E. Company would have 35,000,000 units sitting in ending inventory taking up space and costing money to store. Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income.
PLEASE NOTE: (1) ALL WORK FOR THIS COURSE IS TO BE THOUGHT OF AS PROFESSIONAL BUSINESS PRESENTATIONS, NOT AS HOMEWORK FOR SCHOOL. THE APPEARANCE, TONE, CONTENT, AND CIRCUMSTANCES SURROUNDING THE SUBMISSION OF THE WORK ARE TO BE THOSE APPROPRIATE FOR A BUSINESS SITUATION. 2) PLEASE WAIT TEN DAYS BEFORE WRITING TO ASK PROFS. PENNELLA AND MUGAVERO WHY YOU HAVEN'T RECEIVED YOUR WORK BACK WITH A GRADE. AND WHEN YOU DO ASK, PLEASE RE-SUBMIT YOUR WORK WITH YOUR INQUIRY.
Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should A. reduce the discount rate by 3 percentage points B. reduce the discount rate by 10 percentage points C. raise the discount rate by 3 percentage points D. raise the discount rate by 10 percentage points 6. In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because A. the country eventually will consume more and produce less B. the country eventually will
While gas grills were seeing a 8 percent increase since the previous year charcoal grills had dropped by 3 percent. Charcoal grill penetration was trending down since 1997 and gas grill penetration was trending up. Another contributing factor may have been a increase in price by stores to their private label brands as well as their main competitor (who also produced these stores private brands) increase their price as well. Kingsford had kept the prices the same though some stores had increased the prices on their own. Kingsford had also reduced their media presences since 1996 (because of a decrease in media spending), a direct from the text by Warren explains " The charcoal category was now paying the price for the several years of reduced advertising".
Pricing 4. Production The action plan brand managers Boyle and Warren should propose is to focus primarily on instant charcoal, as it is easier to compete when it comes to finding new customers against gas grilling. They should propose a price increase of 5% for all products. There should be no increase in production for the time being. There should also be increases in both promotion and advertising.
Without a new ballpark, he couldn’t make significantly more profits on the team. Besides the ending of his owner tax benefit, he decided to maximize his income by selling it. According to the article, the goal of Mr. Huizenga’s action in 1997 was to sell the team in the next year and gain more bargain power by showing a ‘red’ financial report. Further, reducing the payroll by trading expensive players. Additionally, bring more value to its cross-ownership, such as Miami Dolphin and sports channel.
The summer of 2000 showed a softening in the overall charcoal category and some consumers switching to gas grilling due to increased pricing. Research analysis showed that the charcoal category declined in growth from 4 percent in 1998 to 2 percent in 1999. While competitors such as Royal Oak and private label brands increased their prices, Kingsford was faced with the question of whether they should do the same. Upon receiving all the necessary data and information, brand managers Marcilie Smith Boyle and Allison Warren focused on four areas of development: pricing, advertising, promotion and production capacity. The 10 percent increase of private label bags led to some consumers switching to gas grilling and others moving to the Kingsford brand, increasing its market share.
How are your suggestion linked to improve customer satisfaction? In business literature, Delta had a primary capability on human relations by paying competitive wages, treating personnel equitably as it grew, and adopting a “no-layoff policy”. Things changed in the 1990’s for Delta though. Key business trends altered the competitive advantage, and the human resource strategy had to change too. After two straight years of financial losses in 1994, CEO Ron Allen rolled out a new strategy called “Leadership 7.5.” Allen targeted to reduce Delta’s cost per each available seat mile from more than 10 cents to 7.5 cents, which would match that of major competitor Southwest Airlines (Bryant, 1997).
a) A decrease in inventory b) An increase in CA c) A decrease in CL d) All of the above 5) What effect will having a company’s WACC increase from 10% to 15% have on its EVA? a) Increase b) Decrease c) Remain constant d) N/A 6) Mr. Kraus is the CEO of Ethics World Wide Co., and he is planning on retiring his stock options this month for retirement. The current share price is $30, but he would profit more from a $35 share price so he puts out a bogus report stating higher than expected earnings. The share price hits $42! What is the effect on MVA?