Many companies fail because they did not plan their future. Investors must plan everything before they start their companies. They also must study the market and answer the three basic questions; what they are going to produce, how they are going to produce it and for whom they are going to produce it. Investors must also plan how they are going to run their companies and the rules and concepts they are going to use. Another thing investors must have or acknowledge is that they must have knowledge of how the systems and markets work. I will help my friend to start his company again and to make it one of the biggest countries in the world. I will increase his customer base, sales and profits.
The first thing I plan to go search for entrepreneurs with successful ideas and use these ideas to make the product that will has great success. Then I plan to answer the three basic questions of production. Then I will study the product to see if it will be successful in the market. I plan to see if the product has a lasting utility or a lasting capacity to be useful and provide satisfaction. Thus, I will try to make the marginal utility of the product go up and increase as you buy more of the product. Then I will turn to a very important aspect which must be solved before the company start to work, labor. I will plan to hire all kinds of labor; I will hire unskilled labor, semiskilled labor, skilled labor and professional labor. I will hire some professional labors to work on the machines that needs great experience and to manage the company, skilled labor to work on the machines that needs experience and do not need to be supervised all of the time, semiskilled labor to work with uncomplicated machines and unskilled labor to do the jobs ...
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...reak-event point; in which the company's total costs equals the total revenues, then the company will be losing a lot of money. I think that if this system is implemented at the company, the company will be successful and will make a lot of profits. I will even use a market demand curve, to show my friend the quantities demanded by everyone compared to all possible prices (I will even use it to determine the best price that suits the company and the customers or the consumers.
I think that this system will be very successful and will earn the company a lot of money and that the customer will be satisfied with the quality and the price of the product. I hope that I have benefited my friend and that he and his workers learned something useful about economics from me. I also hope that this system works and that it will be widely spread all over the world.
With any company, you need strong vision and mission statements to help consumers better understand your business and where you intend on being in the future. After reading the case, I found many issues that management must address in order to sustain a profitable business. The first problem that needs to be addressed is the development of a vision and objectives. A business plan is needed and management must find answers to questions like:
We have cumulated a profit of $206 million over this period, second of the industry. Our goal of escalating profit has advised us to increase automation level and for cutting costs, which enabled us to have the margins of all products above 30% in 2019 and an average margin of 53.4% in 2024. Additionally, we invested to keep our products updated to the market trend with an attention to customer buying criteria. Moreover, starting from recent years, we run our full capacity with second shifts whenever the market need has a possibility to accommodate our production. To achieve a greater profit, we based our pricing strategy on the market movements in general by decreasing our price by $0.50 every year except for our Low End product-Acre.
If you pick the wrong stock, you risk losing the value of your investment. Similarly, firms that perform poorly cannot afford to keep the same amount of
A. To further my understanding of my friends business plan I would need to know the following:
Signode Industries Inc. - Providing Packaging Solutions Executive Summary SIGNODE INDUSTRY: DILEMMA AT HAND: Mr. Gary Reed, President of Signode Industries packaging division, is in a dilemma as what he should be his course of action to meet the 6.8% increase in price of cold rolled steel- the raw material used in manufacture of Signode’s primary product, steel strapping. There are few options given in the case: Increase Signode’s strapping prices to offset the increased price of cold – rolled steel. Maintain Signode’s current book prices as increasing prices would affect sales force morale. Introduce price-flex model as proposed by Jack Davis i.e. a kind of selective discounting or premium charging for customized services. Recommendations Reason: (All data in accordance to 1983) In accordance to Exhibit 1: Sales of Packaging Division of the company = $285,950 In accordance to Table A: Sales of Apex = 33.3% of $285,950 Sales of BBM = 26.8% of $285,950 Sales of HDM = 33.4% of $285,950 Sales of Customized Products = 6.5% of $285,950 In accordance to Exhibit 4: Similarly, For Apex: As it has a capacity utilization of 71% now, Suppose a sale is $100. Then contribution is $39.15 Therefore variable cost is $60.85. Now if we increase the capacity utilization to 100%, Sales becomes $ 141 since production increases by [(100-71)/71] * 100 = 41% Variable Cost = 141% of 60.85 = $85.8 Fixed Cost = 69.38% * 12.3 = $8.53 Total Cost = 85.8+8.53 = $94.33 EBIT = Sales – Variable cost – Fixed Cost = $46.67 % of EBIT = [(46.67/141) * 100] = 33.09% Suppose the company sales 100x units, the total cost was 69.38. Thus per unit cost was .6938. Now the company sells 141x units, the total cost...
In order for a company to be successful, there needs to be a plan. This is not just any type of plan either. Each year new businesses open and when researching why many are out of business within the first year, the answer is simple; they fail to develop an effective strategy. Countless of businesses over the years. Further research of these businesses will show they lack having a solid mission, vision, and value statement, which is important to both internal and external customers. Businesses are out of the mental mindset of generating the most revenue will make them successful. Today, it takes having both internal and external customers, and investors to support the organization. One way for this to occur is when an organization
What company doesn’t encounter failure and not embrace it. Meaning that a company can create mistakes within their business that were unintended for and the option that the business has to solve the problem is by learning from that mistake and figuring out ways to better improve their business. For instance, IDEO has encountered some issues within the business in which they struggled with. One of these issues took place in the innovation processes where the cost and the time it took to prototype a product made it a priority to keep clients involved. This was a problem for the business because designers settled their focus on perfecting a product which could potentially lead to cost and time overrun. One of the ways in which IDEO solved this problem was by having mandatory meetings with their client meetings where all those issues would be discussed and solved. Companies that abide by the concept of “embracing failure” can potentially be lead to successful outcomes as long as they look for appropriate ways to find solutions to when there are signs of failure in their
The plant’s inability to afford to upgrade their equipments and technology presented a major weakness. The two entrepreneurs had an opportunity to penetrate the market by establishing a plant with up to date systems technology wise and upgrade equipment.
I think I should have done the same which pandesic done with their pricing model. They are charging low for their system which any company can easily afford and the only thing the get the percentage revenue of those companies earned by the help of their system and as the revenue increase pandesic also decreases their percentage.
...not just the financial issues for example equity shares, turnover and profitability. Before any growth entrepreneur need to have a plan to ensure that they know the risk and what problems will be appear and the solution to solve the problem. Although a growth plan is times consuming to be preparing but other company would like to look at the plan before doing anything. Also entrepreneurs always need to beware of the company vision is it similar to each other, culture and the communication also will affect the result and should be considered carefully. Those are the main reasons to make company businesses successful or failures in few years. Furthermore, this method cannot predict one thing is the timing, sometimes entrepreneurs miss the right time to growth their company because of the physical problem like earthquake or hurricane occurs which no one can predict it.
Sometimes people invest in businesses, but they are unable to thrive through financial crisis when they arise. The book has used several examples to helps business managers to see through their institutions during financial depression periods. When business management uses various innovative ideas, it can be able to defeat market inflations that affect the business. Investing in many innovative ideas helps business to ship in profit from different sources. The sources of income mutually benefit from each other. Therefore, should one source fail it can be supported by others. The book has given various concepts in business management. These concepts help managers in collective decision making that propel business towards goals achievement. The concepts in the book also help managers and entrepreneurs in managing the workforce in an organization. The book has also given the concepts that help business stakeholders in investing in innovative ideas that can be well integrated with modern business. It has also given case studies that help the readers to have a deeper understanding of the management
This failure is often times a response to poor capital, management, and planning. When opening a small business, you may not see profit for several years. So, it is important that as an entrepreneur you need to be aware of this fact and save enough capital for you, and any dependents, to survive off of for a few years while your company grows in popularity. Money, time, and personnel are all a part of the management of a small business. If the owner fails to properly manage all of the key parts, they business may fail. A business owner must also plan ahead for potential disasters and dramatic changes. For example, equipment breaking and the possibility of the company vehicle could stop working. By planning ahead for certain instances an owner can avoid possible
All activities in our daily life occur according to a certain plan. Production planning involves making prior decisions on how to carry out a certain strategy in a business which involves: the material to produce, the period of production, and the exact location to carry out the production process. A well designed plan with good understanding of the future outcomes helps to avoid failure due to uncertainties. Production planning aims at looking ahead and estimating the type of resources required in an organization and then coming up with the proper arrangements which enables attainment of the set production targets in the proposed plan (MBA Knowledge Base, 2011). Production planning strategy therefore involves coming up with ways and means of achieving the above objectives. To implement the plan, the organizing group has to be equipped with the information on the complete data of the product which includes; the expected operations, market research, and the methodology to be put in place. T...
Getting started for most businesses is to start with a great idea. When producing a idea make sure that the idea that you come up with is a great one and fits there method
An entrepreneurial firm must plan ahead, and predict issues that may arise. Have a plan for what to ...