Should the Air Comfort Division institute the 5% price reduction on its air-conditioner units even if it cannot acquire the compressors internally for $50 each? Support your conclusion with appropriate calculations. # of units= $6‚000‚000/$400=15‚000 units+2‚400 units=17‚400 units Before 5% Reduction After 5% Reduction Per Unit Total Per Unit Total Sales Revenue $ 400 $ 6‚000 $ 380* $ 6‚612* Variable Costs: COGS: Compressor 70 1‚050 70 1‚218 Other Direct Material
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Consumer Behavior Homework # 2 Zhakupbekova Zhazira During the recession there have been significant changes in consumer behavior. Most of the customers have switched from higher-priced brands to cheaper ones. According to McKinsey research‚ most of consumers who have changed their choice and now buy less expensive products said that their experience was better that it was expected. For example 48 percent of those people who have tried cheaper cold and allergy medicines were satisfied with the
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The Nature of Management Control Systems (Chapter 1) The central focus of this book is strategy implementation. In particular‚ the book provides knowledge‚ insight‚ and analytical skills related to how a corporation’s senior executives design and implement the ongoing management systems that are used to plan and control the firm’s performance. Elements of management control systems include strategic planning; budgeting; resource allocation; performance measurement‚ evaluation‚ and reward; responsibility
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Dove has gone to extensive lengths to market their products against rival company’s They have made advertisements waging product wars against Ivory in a stiff competition to take over the personal care market Other companies that dove has been involved in product wars with are all the major players in the personal care industry Olay‚ Neutrogena‚ and Aveeno This is an example of a product war because dove is implying that they produce a better product than ivory by comparing the quality of
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Jadelink Case Study Q1: What were the issues that caused Chung to obtain external funding? In 2006‚ Jadelink had sales of a couple of million HK dollars‚ which increased several times in 2007. In the first two months of 2008‚ when the sales volume was three times the sales for the same period in 2007‚ the business broke even. Jadelink realized a lucrative profit‚ and was expected to have a brighter future. Chung was confident that no potential competitors could emerge fast enough to threaten
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Chapter learning goals Chapter 3 Understanding the role of Culture 1. To understand how culture affects all aspects of international management 2. To be able to distinguish the major dimensions which define cultural differences among societies or groups 3. To emphasize the need for international managers to have cultural intelligence in order to interact successfully in host countries 4. To recognize the critical value differences which frequently affect job behaviors 5. To be able to develop a
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ABC Exercises 1. ABC versus traditional costing. Euro Tech Corporation produces two types of audio cassettes: standard and high-grade. The standard cassettes are used primarily in answering machines and are designed for durability rather than accurate sound reproduction. The company only recently began producing the higher-quality‚ high-grade model to enter the lucrative music-recording market. Since the new product was introduced‚ profits have been steadily declining‚ although sales of the high-grade
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aseSamsung Case Write-up Student: Guilherme Filho Penn ID: 85730403 1. What are the sources of Samsung’s competitive advantage? Validate your arguments regarding competitive advantage with evidence from the case. Differentiation – There are two main sources of competitive advantage that increase the WTP for Samsung customers. The first one is the Product Mix. Samsung offer to its customers a huge variety of products‚ ranging from the cutting-edge technology to more basic products. It also
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success or to sustain long-term operations. CEO Reid Hoffman and Vice President of Marketing Konstantin Guericke must decide on and implement a plan that will be effective in generating revenue by October 2006 to ensure success in its next round of venture-capital funding. They can either introduce a bundle of eight services for a monthly charge of $15 while maintaining core features of the site or change the product’s design feature by allowing members to contact each other without intermediaries
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Surviving Plant World’s Hard Times In ten years‚ Plant World had grown from a one-person venture into the largest nursery and landscaping business in its area. Its founder‚ Myta Ong‚ combined a lifelong interest in plants with a botany degree to provide a unique customer service. Ong had managed the company’s growth so that even with twenty full-time employees working in six to eight crews‚ the organization culture was still as open‚ friendly‚ and personal as it had been when her only "employees"
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