Key Learning Points The growing value of your domestic currency can hurt your operations overseas. Consumers are less willing to buy your product because it is more expensive than comparable offerings. When your profits are becoming stagnant it is important to capture new customers. Toyota wasn’t making money with its older market so it turned its efforts to capturing a younger market. To change how consumers view your product you can start new ventures to create products that appeal to other demographics under a different name.
This misalignment was due to the fact that the technology would reduce the need for more base stations and ATT sales people were paid on the number of base stations sold. ISC would be powerless to motivate the sales force. Factors that favored the aftermarket decision include the fact that in the long term, these customers would be the ultimate adopters of the technology. In turn, these customers could demand that OEM install ISC’s products. While ISC would need to train and use their sales force and provide servicing, they would at least have control over the customer interaction from beginning to end.
This suggests that Scope lacks a strong promotional strategy since its market share continues to diminish while Listerine’s grows. Another internal weakness is that P&G has recently decided against allocating more money to Scope. This will make it more challenging for the brand’s marketing team to compete in the market while their competitors like Colgate Total are investing
The North American Sales is not completely goal oriented, leaving high pressure to salespeople to meet their sales target. And the workload level is unbalanced among their industries: Energy, Government, Manufacturing and Retail. The manufacturing sector is more requested for sales support than the others; however, their process time across sales support is the same. This means that there is inefficiency in operations; if there is less workload in some sectors their process time should be less than the higher workload. The problem in one sentence: BPS failed meeting sales targets and renewals rates because sales departments are not operating efficiently.
In the short run firms may not increase their profits because the cuts in prices but if they achieve this in long run they may experience maxim profits. However the directors try to imply polices which do not always maximize the profits their objective is to satisfy the owners by getting some profit and growing the company in order to receive bigger market share to influence prices and quantity produced. I think that the managers should firstly try to grow the company and work for normal profit and maybe in long run obtain super normal profits. In short run they try to achieve lots of other objectives regardless profit
Social Responsibility Company Q seems to currently have an economic attitude toward social responsibility. An economic model is based on the traditional concept of business. If the business is providing a quality good or service, showing a profit and providing jobs then it is successful. Company Q is more concerned with profits and lost revenues then maximizing a positive impact. They have shown this by closing a few stores in a higher-crime-rate area because they were losing money, by only offering a very limited amount of health-conscience and organic products because they are high margin items and by declining to donate to the local food bank because of worries over lost revenues.
In order to keep loyal customers and attract new ones, IKEA follows a value-based pricing strategy to maintain affordability and produce superior value. Based on IKEA’s marketing strategy2, it is safe to assume that the company is geared more towards good-value pricing, rather than value-added pricing. When it comes to purchasing furniture, consumers look for longetivity and durability of a product in order to consider it a value-added item. But as we all know, IKEA products are known for their affordability rather than their longevity. The average lifespan of IKEA products ranges from one to three years.
Another reason why I agree with their decision to move is that at the moment they are not getting as much profit as they forecasted so clearly operating in a Niche market is not working so it makes sense to move into a mass market and increase their sales. It could be argued that it is not a good idea for Shearings to try and appeal to a mass market and move out of the niche market. This is because they were getting a steady profit operating in a niche market so it is a bit of risk moving into a market they are unfamiliar with which could be a huge failure because they are spending lots of money trying to make it work like the £2 million on advertising and the further £35 million they spent on expanding to accommodate the new customers and if it doesn’t work they are left with a huge cash outflow and no where near enough inflows to cover it. Another reason why I would disagree with their decison is that in mass market are huge competitor like Thomas Cook, which could be more appealing to customers, as it is a relatively known name or because they may be able to offer lower prices, this would lead ton o increase in income and would lead to several problems. Overall I think the decison depends on whether the move is affordable as at
This would explain the difference in gross profit and sales revenue. 2. The economy seems to be a concern as; people are not flocking to the best of the best any longer and may be searching for alternative products. In tough times even a strong market share can erode with the search for comparable products at a lessor price. It appears that this very issue may be vexing Elite.
In this case, the supersonic sales staff feels under paid however the management is of the view that they staff is being over paid and have been slacking. The staff has put forward a request to increase their salries, however as the company feels that the staff is under worked and is reluctant to increase their salaries, atleast not until the performance has improved in the region. Sales manager, Bob Basler, is now faced with two solutions for this dilemma either to raise the quotas or reduce the compensations