Case 13-01 Refer-a-Friend Program Runway Discount (“Runway” or the “Company”) is a privately held online retailer that sells discounted high-end fashion. In an effort to increase its sales and customer base, Runway implemented a customer referral marketing campaign (the “Refer-a-Friend Program”) whereby existing customers can refer friends to Runway and receive a $25 credit towards the purchase of future merchandise. The terms of the program are as follows: Runway offers existing customers (the “Existing Customer”) a $25 credit (the “$25 Referral Credit”) if the Existing Customer refers a friend (the “New Customer”) to Runway’s Web site and the New Customer purchases merchandise from Runway. After a purchase is made by the New Customer, the Existing Customer receives a $25 credit to be applied to a future purchase from Runway. The $25 Referral Credit represents the fair value of the cost Runway would pay to acquire a new customer from an unrelated third party or marketing firm who is not a purchaser of its products.
$60,000 will be put in a business account for startup costs and the remaining $33,000 will be put in savings and be available as a liquid asset for gaps in product purchase and customer payment. CES has been forecasted to have an extraordinarily profitable first year of operation, and will be able to do so without the use of borrowed funds. Based on the forecast the company will spend the better part of the first year in the “black” and borrowing of funds will not be necessary. A2.
Larry Goldman (2008) explains that, “Your definition of a loyal customer will determine how you measure the success of your loyalty program. There is no one metric to measure your program, but most companies will typically use a combination of metrics and more, including average order size or matrices of frequency and product breadth. Ensuring that marketing has access to the various customer metrics to evaluate their loyalty initiatives, including Internet discussions that reverse-engineers loyalty drivers, is the job of customer intelligence. By providing a complete selection, marketing can show their ROI metrics based on the most relevant indicators, which will change every time.” After
These efforts in customer and community service help Lowes Foods to increase their sales and therefore profits. One of Lowes Foods most successful programs is Lowes Foods to Go. The Lowes Foods to Go program is an online shopping and pick-up program where customers can log onto www.lowesfoods.com and shop online. Next they drive to the store and the groceries are delivered to the customer’s car. There is a fee of $4.95 for this service.
2 An adver- tisement is generally not an offer. An advertisement is merely a request for offers. The con- sumer makes the offer, whether by mail, as above, or by arriving at a merchant's store ready to buy. The seller is free to reject the offer. | Application of Black Letter Law to Facts: | In the most simple basic form, a contract is formed through offer and acceptance - Since the Raisin Board’s advertisement did not count as an offer being made on their part, Milton’s sending in the $700,000 dollars to buy the points for the jet is not considered an acceptance of an offer.
If production is kept the same, the company is predicted to sell every unit produced which would avoid a stockpile of inventory and also safeguarding an extra 5,000,000 units in ending inventory in case sales go above 30,000,000. In the end, B.E. Company’s net income would increase by a substantial amount due to an increase in sales rather than an increase in ending
This year, Lacey, DLK’s president, decided to seek additional funds to finance DLK’s working capital. CME declined to extend additional funds because of the money already invested in DLK. High Tech Venture Capital Inc. proposed to lend DLK $100,000, but at a 10% premium over the prime rate. (Other software manufacturers in the same market can borrow at a 3% premium.) First Round Capital proposed to invest $50,000 of equity capital into DLK, but on the condition that the investment firm be granted the right to elect five members to DLK’s board of directors.
There will be a permanent extension of the employer provided education assistance and this is important to employees. According to B business Finance this is good news to employers who offer education assistance this “provision that allows employers to provide up to $5,250 annually in tax-free undergraduate and graduate educational costs to their employees has been renewed once again and is now permanent. This will no doubt be welcome news to employers and employees seeking advanced degrees” Transportation costs for employees will change with this new legislation. “The new law also increases employees’ maximum pretax contribution to mass transit expenses from $125 per month to $240 per month. However, the provision can be implemented retroactively to January 1, 2012, if employers are willing to deal with the administrative issues associated with such a move
Analyzing Managerial Decisions: Setting Tuition and Financial Aid Managerial Economics, MBA 540 March 17, 2013 Abstract In the year 2000, the Board of Ursinus College raised tuition 17.6 percent to $23,460. Inasmuch as 200 more students applied to the college than the year before, the president of the college surmised that applicants assumed the school must be better if it cost more. This school of thought (no pun intended) had been proven at other institutions of higher learning such as the University of Notre Dame, Rice University and the University of Richmond. In contrast, North Carolina Wesleyan College lowered its tuition and fees by 22 percent 10 years ago and saw its number of applicants decrease. Susan Hansen, an Admissions Director at liberal arts college in the East, has recommended to her president that the college needs to increase its tuition and reduce financial aid to students in order to solve the school’s financial problems.
Ryan (R-Wis.) said Monday. "This is money that was never intended to be spent; it was never requested. We shouldn't be counting it as part of our total as if we're accomplishing savings." The Obama budget counts more than $800 billion in savings from the wars, and reinvests $230 billion in transportation projects, part of the administration's spending aimed at juicing the economy. Obama is seeking a $476-billion, six-year transportation bill, which, when added to another $50 billion requested for roads and bridges, amounts to an 80% increase over the last such request.