Custom Snowboards‚ Inc. Expansion into Europe The management of Custom Snowboards‚ Inc. is considering an expansion into Europe. The percentage of the total sales from Europe has grown and the growth is expected to continue. The company could pursue this expansion from a variety of different options. Business Risk Assessment: The CEO is concerned about the risks of expansion into Europe. In particular‚ he wonders about what affects an European expansion will have on the internal operations of the
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are lower‚ this variance is known as favourable. If sales are lower or costs are higher than expected‚ this variance is known as adverse. Firms spend money making their products. These are called costs. There are two types of costs involved in breakeven‚ these are variable costs and fixed costs. Variable costs are costs that change according to output. These costs change directly according to how many products are made. Fixed costs are costs that do not change‚ regardless of the number of goods
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Burton Snowboards Jake Burton is the founder and owner of world’s leading snowboarding company. Since 1977‚ his company has created snowboarding gear that sets the standards for the rest of the industry. In order to be successful‚ his motto is to "always focus on the sport and everything else took care of it self." The Exchange Process at Burton Snowboards Exchange process is when two or more parties’ gives something of value to each other to satisfy each party’s perceived needs. Exchange
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equals the fixed cost. Breakeven analysis provides data for • profit planning • policy formulating and •decision making Break-even analysis may be based on: •historical data‚ •past operations‚ or •future sales and costs‚ Depending on management’s need and desire. •The break even analyses technique is used in various business decision making areas‚ as this help in knowing the minimum desired level to be achieved to avoid loss situation. •The Breakeven analysis is mostly used at
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Case study questions: Burton Snowboards Q1) Analyze Burton using the competitive forces and value chain models. When examining Burton Snowboards we can see how they considered factors of the competitive forces model in an attempt to expand globally. Traditional customers At its peak burtons controlled over 40 % of the US snowboarding market and remains the market leader despite growing competition. One way Burtons has stayed market leader is by being adaptable and dynamic which is a competitive
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In what ways does Burton Snowboards create utility for its different types of customers? Burton create utility for people who would like to enjoy a different type of activity in the snowing environment: • Form utility: Burton took the idea of building the snowboard from snurfer which use to be received as a toy modify its concept to create a snowboard that can be perceived as a winter sport activity. • Time utility: Burton’s snowboards products are available for people who enjoy snowboarding
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Burton Burton Snowboards takes surfing to the mountains‚ with premium snowboards and equipment. Jake Burton‚ the world’s first snowboard maker‚ founded the company in 1977 in Londonberry‚ Vermont. Despite it being small and privately owned‚ Burton is the industry leader in snowboards and equipment controlling 40% total market share in the winter sports industry. Burton is a global business with its main headquarters in Vermont‚ Japan and Austria and worldwide distribution capabilities in over
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A breakeven analysis is used to determine how much sales your business needs to start making a profit. Every business wants and needs to make a profit but the only way you can determine if your product or service is profitable is by conducting a break-even analysis. This is a tool used by companies to understand how many products they have to sell in order for the company to break even. However‚ for you to understand how to come up with the breakeven analysis‚ you first need to understand the process
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• The breakeven analysis using the margin of safety is an invaluable tool to assess the impact of the risk of a change in revenue or costs. It is particularly useful for reviewing financial forecasts and business plans. This is illustrated as follows – Forecast 1 Forecast 2 Forecast 3 A Sales volume in units 20000 25000 25000 B Selling price per unit $100 $100 $100 C Forecast revenue A x C $2000000 $2500000 $2500000 D Variable cost per unit @$60 E Variable costs A x D $ 1200000 $1500000 $1500000
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kinds of snowboards Specific Purpose: To inform others about the different kinds of snowboards and where the different snowboards are best used on the mountain and what kind of riding you would do on that particular board. Title: The snowboard learners guide Introduction: Many people decide that they are going to start to snowboard and they go out and waste 300-500 dollars on a snowboard that either does not fit them or does not fit their riding style. If you ever decide to snowboard one day
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