Computron Inc. 1. What are the considerations affecting the price strategy of Computron? What is the relative importance of these considerations? What are the international marketing implications? Summer 1996‚ Zimmerman‚ manager of the new European Sales Division of Computron‚ an American manufacturer of medium sized digital computers‚ is faced with a biding process. He has a deadline in two weeks to decide if Computron would submit and if so at which price on a bid to sell a Computron 1000X
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Analysis for Computron Case Situation Analysis The following internal and external factors should be taken into consideration before decide what price to submit the bid to sell a Computron 1000X digital computer to Konig. (If Computron follow its normal price ($1‚244‚800)‚ there will be about 43% higher than one of its competitors). Internal factors: 1‚ Computron has core competencies in terms of product quality‚ reliability‚ reputation and rigorous services. 2‚ Computron has policy
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Computron Inc. Q1: How far does Zimmermann have to cut the price to have a chance? The cost of a 1000X computer for the European market usually consists of the cost to manufacture ($768’000)‚ the overheads‚ a markup of 33 1/3% ($256’000) that includes the profit‚ research and development and selling expenses; in addition to these components‚ there are transportation and installation costs ($67’200) and finally the import duty ($153’600). Computron Inc. has previously assembled and manufactured
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Running head: MINI CASE - CHAPTER 3 Mini Case - Chapter 3 Computron Industries – Jamison Analysis Mini Case - Chapter 3 Computron Industries‚ a manufacturer of electronic calculators‚ has been going through some growth over the course of the 2007 and 2008 years. Some components of this growth include new sales offices‚ additional plant capacity and a costly advertising campaign. However‚ execution of this growth is subpar‚ and has led to suppliers and lenders being paid late‚ bank complaints
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CASE 2 Computron inc (2006) Date: 15/05/2015 Tornike Khaduridze History Computron was an American firm that had‚ in the winter of 2002‚ opened a European sales office in Paris with Thomas Zimmermann as its manager. The company was the leader on the market between 2002-2005. The Computron 1000X was designed specifically for process control applications. It was actively used in chemical industry. The computers were produced
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Worksheet for Computron: Competitive Bidding Assignment: Analyze the case. Summarize your analysis of alternative bidding strategies in the following table. (Identify the key criteria. Evaluate the alternative bidding strategies on each criterion.) Draw an appropriate conclusion. Criteria | Alternatives | | I. Submit bid at list price | II. Cut Price (16 %) | III. Do not Bid | High DependabilityReasonable PriceLow Emphasis on FlexibilityPinpoint Accuracy Not Required | Advantages1. Maintain
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Module 2 Case ITM524: Foundations of Information Technology Management Dr. Mina Richards Introduction We live in an environment which changes often. In the business world‚ what is in demand today for an organization may not be a requirement for tomorrow. Smart managers know that organizations that succeed do so because they adjust to keep up with the changes that are taking place (Harmon‚ 2007). Change in business comes in many forms and affects companies in every industry. Business today
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Main issue: European Sales Division of Computron had to decide what price to submit for its Computron 1000X digital computer for the bid of a purchase contract from Konig & Cie.‚ AG. * Four other computer manufacturers‚ including RMAG‚ EDAG and Digitex‚ would bid for the contract. The competitors’ prices will most likely be around the $872‚000 proposed by RMAG. * Computron used cost based pricing (firm’s standard pricing policy): The European Price= U.S. cost + 33.33% x Cost (Markup)
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Finance - Case Study Situation - Computron (expansion Program) A. Sales have been below forecasted numbers B. cost have been higher than projected C. They suffered a profit loss instead of a gain D. Management‚ investors and directors are concerned. E. It’d tsking s long time for dvertisement programs to get across all business units‚ including sales and operations Problem - Computron is faced with alot of problems that have impacted their business and caused them to suffer financially
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Harvard Business School 9-597-063 Rev. November 14‚ 1997 DO Computron‚ Inc. (1996) In July 1996‚ Thomas Zimmermann‚ manager of the European Sales Division of Computron‚ was trying to decide what price to submit on his bid to sell a Computron 1000X digital computer to Kšnig & Cie.‚ AG‚ GermanyÕs largest chemical company. If Zimmermann followed ComputronÕs standard pricing policy of adding a 33 1 3 % markup to factory costs and then including transportation costs and import duty‚ his bid would
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