Should BW drop Grill A? what’s the impact Assume that the volumes and selling prices of the other 2 products would be the same whether or not Grill A product line was dropped 2. Should BW lower the price of Grill C? The owners wanted to know the impact if they lowered the price of Grill C to $75 and if doing so let to 20,000 unit increase in sales of Grill C 3. Should BW change its advertising focus?
I have also considered legal and moral responsibilities to our customers. We pride ourselves on the business ability to exceed highest quality standards to our customers. This has built an environment of trust. Our reputation and image should be a high priority in action that we take. After careful consideration of possible options three viable options are highlighted that I feel would maintain the trust and our reputation with our customers.
As a sale manager you can retrieve the first profit by other mean, including decreasing cost in administration (redundancy). Admin cost = 25000 Drop profit = 1285.8787 New admin cost = 23714.1213 That means the administration cost will be reduce at about 5.14 %. Task6 Consider the effects of the following deviations upon the Master Budget: 1. A 2.5% increase in materials costs 2. A 6% increase in Electricity costs.
Lower reserve requirements will result in more funds being available to loan out. This should, in turn, increase the rate of economic growth. Conversely, a higher reserve requirement will reduce the availability of funds and should slow economic growth. In this case, we need to increase our rate of economic growth in response to the recession, so I choose to lower the reserve requirement. The reason I would make this choice is to stimulate lending to businesses, reduce unemployment and increase household income so that the economy could then recover naturally.
Willow Company is must reduce its inventory levels and sell inventory at a faster rate to improve the inventory turnover closer to 30 days. Due to the negative cash flow, Willow must explore the opportunity to manage its inventory levels relative to sales. The greater the inventory levels, the higher sales must be, otherwise additional storage and other holding costs will be incurred to cause further deterioration in its cash position. Cash will be invested into unsold inventory that is generating no return while remaining unsold. In addition, there will be the opportunity cost of not having cash available for more useful requirements i.e.
It may be an option to consider losing market share but staying with higher prices. We will start making revenue of $342 when we capture a minimal market share of 15.6% (approximately 50,500 customers) if we charge a bundle price of $84.95. The Table 3 below shows the variation
We cannot afford and will not be approved for extra advertising without research that proves that this advertising will increase revenues more than the cost. The option of raising discounts for the Skyline Buffet and gift shop is not being recommended because it increases our loss to the 20% discount. It will decrease our revenue from the gift shop and Skyline Buffet. This 5% increase has to be offset by a 5% or higher increase in spending through the current members or new members. Further research should be done to the members to see if this change would allow them to purchase more.
It is our goal to position our products in such a way that our customer experience unrivaled satisfaction mentally and continue to patronize our organization despite our competitors offering. Our organizations offer a unique combination of brands and products at a good-value price. Customers are made aware of our products via numerous advertising and public relation efforts. Also, we have implemented tight control measures backed by an accurate budget to closely monitor quality and improve customer service and overall satisfaction. Table of Content Topic Page Executive Summary…………………………..............................................................2 Situation Analysis………………………………………………………………….4 - 8 SWOT…………………………………………………………………………………9 Marketing Strategy…………………………………………………………………10-12 Financial Information……………………… …………………………………..…….13
It also shows your customers that you are trying to continually improve both your product and process. The organizations that have adapted these quality criteria, have shown increases in profits and processes, and will only benefit from the process. References 1. http://www.texas-quality.org/Content.asp?W=31&C=61&S=87 2. http://en.wikipedia.org/wiki/Malcolm_Baldrige_National_Quality_Award 3.
This means that as there is a substantial amount of excess supply prices should be cut heavily in order to increase the demand for this stock. If Monsoon ignore how much excess supply there is when deciding at what extent to cut prices they wouldn’t know how much supply there is to actually sell and therefore may try and sell it at too high a price, therefore causing demand to rise slower than it potentially could, should they discount the prices further Secondly, it is important to consider how quickly stock will go out of fashion. If some of the surplus clothing stays in fashion after the seasonal period, consumers are more likely to buy it at a higher price. This could affect the extent as to how much Monsoon cut prices because if the clothing goes out of fashion they will have to cut prices further, in order to sell the excess supply; getting rid of stock. It is important to consider how expensive the clothing was to buy in, in order to try and maximise