Explain why economies of scale are important to companies such as McDonald’s and GBK. Economies of scale gives big companies access to a larger market by allowing them to operate with greater geographical reach. Often, large firms in industries with high fixed costs can take advantage of savings that smaller firms cannot. Economies of scale characterizes a production process in which an increase in the scale of the firm causes a decrease in the long run average cost per unit. Economies of scale can be enjoyed by any size firm expanding its scale of operation.
Tootsie Roll Business Plan ACC/561 March 11, 2013 Tootsie Roll Business Plan Tootsie Roll Industries Inc. is one of the top candy producers in the world and has been producing candy since 1896. The company is working to qualify for additional financial funding to increase their liabilities by 10%. The appropriate research and financial reporting will need to be completed to ensure Tootsie Roll provides all the proper information to the loan officer. The loan package that is provided to the bank will include a ratio analysis of financial statements, justification of the reason for the loan, and an explanation of how the company plans to use the proceeds from the loan will be outlined in the following business plan. Without accurate information and a detailed business plan, the loan could be considered incomplete and will delay the approval process or possibly cause them to not qualify at all.
From 1999 to 2010, Frog’s Leap recognized ample growth due in large part to the purchase of additional vineyards which resulted in an increase of wine case production of 59,000 to 62,000 cases. Frog’s Leap enjoys a large portfolio of customers, particularly resellers. 80 percent of 2010 net sales in the U.S. come from resellers. Exports, mainly in Japan, result in about 7 to 8 percent of company net sales. The remaining sales derive from consumers visiting Frog’s Leap’s winery (Gilinsky, 150).
In 2011, bars/cafes grew by 4% in terms of current value to reach sales of 4.7 billion dollars of which 15% is revenue from smoothies sold in Canada bars. The smoothie bars have shown an increasing trend in the recent past, and this explains a corresponding growth in their market. There is also a fierce competition in the organic food market. In 2011, around 174 new vegetable /fruit and nectar products entered the US market. It was a threat to Bolthouse Farm despite the fact that the company produces quality beverages.
Pert Plus was a breakthrough product and P&G would have first-mover advantage in the largest segment of the hair care market. Negatives were the poor performance of the original Pert shampoo and the perception it was a product for men. Establishing the optimal price in the Canadian market was one of P&G’s biggest challenges. The company had to make three pricing decisions. 1.
According to Mimran, the use of “Joe” helped with the private label feel of his brand and “Fresh” appealed to customers since it was originally sold in a supermarket setting. In 2007, Mimran decided to extend his line to sleepwear, lingerie and children’s wear because of its exceedingly well success its first year on the market. Once again, in 2008 and 2009, sunglasses and cosmetics were also added to the line. At this point, Joe Fresh had become the second largest selling clothing label in Canada (CITE). Within its first year and a half, Joe Fresh had chalked up $400 million in retail sales which led to the first standalone store in Vancouver in 2010.
Their products consist of many types of grain products, pasta types, and canola oils. Since they formed in 2007, they have taken over the ag-trading sector, quoted by many as being “Canada’s biggest grain handler” (AlbertaFarmer, 2013). Thus, their mission is achieved every year as they aim to dominate the market in an eco-friendly matter, ultimately paying large dividends to stakeholders without damaging our environment along the
This product was the reason for the alliance between the company and Citibank, which enhanced the company’s credibility and market share. The product became the company’s top seller. The supergrip sign holder that was developed with a Canadian partner (later bought out), The product was patented and accounted for 20% of the company’s sales. Gerry (CEO) married Marty who served as the chief trust officer and the one the kept the family together. They had 7 sons and only 3 worked in the company.
On the one hand, they really contribute to the maintenance of the stable growth of Canadian economy due to the permanent and increasing flow of immigrants, which enlarge the national market of the labour force. On the other hand, there are numerous negative effects of the growing immigration on the national economy, among which the growing competition for the native born Canadians is not the most serious problem. First of all, it should be said that economic reasons are dominant reasons which force people from other countries seek for opportunities to acquire Canadian citizenship (see Figure 3). In fact, economic reasons explain the high number of immigrants from developing countries, since their socioeconomic position in their countries of origin is consistently worse compared to their position in Canada. However, it is necessary to underline the fact that, in spite of the improvement of their socioeconomic position, they still occupy the lowers strata of Canadian society.
DIPPIN DOTS ICE CREAM QUESTION 1 PESTEL analysis is “a framework that categorises environmental influences into six main types: political, economical, social, technological, environmental and legal.” (Johnson et al, 2010) The costs involved in manufacturing of ice cream were high, as the ingredients and equipments used were expensive. Special equipment and freezers were required at retail outlets because the ice cream had to be served at super cold temperatures. Older generations were Dippin Dots most loyal customers and they introduced it to younger generations, furthermore the ice cream did not last very long at outside temperatures and was beaten at innovation when competitors came up with the slab concept and selling of their ice creams in convenience stores. Earlier in development the flash freezing of liquid cream was patented but a patent infringement lawsuit was rejected and competitors could make products similar to those of dipping dots. Porters five force model is “a framework for industry analysis and business strategy development.” (Porter, 2008, p68-104) The loss of the patent broke the barrier of entry into the market hence there was a high threat of new entrants.