Financial Report
F. REV Cloud Candy prospered at Market Day and became very profitable. One of the main reasons is due to the fact that the product we were selling was one of a kind at the TBR Market. Our business was one of only two businesses with cotton candy as our product. Because of this our direct competition was very low. In contrast, other companies that sold products that were very common such as cookies or cupcakes had very high direct competion. These companies would have to ensure that their product had a certain quality that made them stand out from their competition. In addition, other companies also had a very high operating cost. They would find that they had a very high revenue; however, because their operating cost
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As our operating cost was mostly a flat rate, it was exceptionally lower per unit than that of our peers. In comparison, our prices were high as we only needed to sell them for $0.40 in order to break even. Nonetheless, we sold them for $2 or $3 to ensure that our profits would be as high as we could get them. Lastly, we had a sizeable advantage against our peers as we integrated a pre-ordering system into our company. A large portion of our profit came from pre-orders. As most students at TBR were not aware of the other businesses, they did not have any desire to save their money for other things as they most likely did not know about other products at that point in time.
G. Reflecting on our experiences at TBR Market Day, our business could have become more profitable than it had been by raising our prices, refining our marketing and offering more choices. As our company was one of only two companies selling cotton candy, if we had decided to increase our prices we would
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Also, we would manage our time better as a lot of things we left to the last minute therefore not attaining the highest quality. I would also make more pre-made products as it was quite a hassle to make them at the booth and our customers ended up waiting 5 or 6 minutes if they had a large order. Moreover, we would also offer pre-orders to more people as in view of the fact they were so successful. Initially, we only offered students in grade seven the opportunity to pre-order as we knew they would be absent on the day of the market and they were one of our most interested customers (based on our survey.) However at market day, many pupils in grade 5 and 6 also were very interested in our product. Because of this however, we had a lot of issues regarding the large amount of people at our booth. We all got very stressed and miscalculated change or gave an order to the wrong person. Prior to market day we also had some errors in our graph seeing as our operating cost line did not match the
From classroom to a cocktail party, having knowledge in today’s economics is definitely an asset when it comes surviving in the world of business. Cocktail Party Economics, by Eveline Adomait, and Richard Maranta undeniably satisfies as an economic training book, helping you understand the concepts of basic economics. The book brings to light many theories and thoughts, which are explained in a certain way that help readers easily, compare and relate them to each other. During the first couple chapters of the book, the main theories presented are scarcity, value, opportunity cost, production, and absolute/comparative advantage. Believe it or not, all of these theories are relatable to Supply and Demand; the two concepts introduced in chapters six and seven.
3. Increase sales to current customers by 5% each year by using innovative technology in order to find more efficient ways to distribute and manufacture our products leading to more competitive pricing.
College is marketed towards students as an essential part of building a successful future. The United States “sells college” to those who are willing to buy into the business (Lee 671). With the massive amounts of student debts acquired every year, and the rising costs of
My conclusion is that the protagonist should buy more stock of Costco Wholesale Corporation as she concluded the company is growing at manageable rate without relying on debt or equity. They are with high sales or profit, low labor costs, and consistent growth. Costco seems to be a low risk stock that is performing well with long term stability for more
The company, General Mills, for which I was assigned, proved to be a worthwhile investment researching since it contains a large portion of the market share of its “niche,” that being breakfast cereals and the like. In conducting the research necessary to find out if a potential investor might strike interest upon General Mills, we find out a myriad of things. By drawing our attention towards the spreadsheet, which contains the bits of information we need to infer conclusions, we can see the patterns that develop over a 5 or 10 year period involving such things as: stock price, EPS, ROI, and many others. The following will give some insight into the history of General Mills among other things.
1. In the case, Marty Manley recognized that the used book market has changed significantly since Alibris started working on their pricing module and providing pricing services. Marty realizes that in order to help Alibris suppliers successfully weather this market change, he needs to help them understand what is going on and how it might affect the value of their businesses as well impact their revenues. How well do you think he achieved this informational/teaching goal for the business partners? (of understanding the market) (Katherine)
In Exhibit A scenario 3, the retailer gets the same margin, we get a 3% increase in the margin and clients get a 5% discount, a win-win-win scenario. I also believe that, since we’re controlling the message and communication, unit sales will increase more than the 7% we saw in the Staples test to at least 10% as we will have creative control and will be able to communicate with the customer directly and
The stock rose to a high of $54 and many analysts doubted Krispy Kreme's strategy and potential growth merited a stock price nearly 70 times projected 2002 earnings per share. I agree with the statement "the numbers just don't work. " Question 3. SWOT ANALYSIS
Growth: If the product succeeds, sales will grow. Prices could still be high, but with increased competition prices will drop. The producer still advertise at a high level to fight off competition. Product starts to move into profitability.
2. Are we improving – are we delivering improved customer satisfaction, launching more new products, helping grow the company’s sales, improving our profits?
Currently, Nicholson’s financial history boasts a 2% increase in profit annually but this percentage is way below the industry average of 6%. Cooper management proposed that if Nicholson stops selling to every market, increased efficiencies would result and cut cost of goods sold from 69% of sales to 65%. It was also suggested that the acquisition could lower selling, general, and administrative expenses from 22% of sales to 19%.
The 3 percent decline in sales causing a 21 percent decline in profits can be attributed to the identification of the accounting concept of operating leverage. Operating leverage is what business managers apply to boost small changes in revenue into sizable changes in profitability. Fixed cost is the force managers use to attain disproportionate changes between revenue and profitability. Therefore, when all costs are fixed every sales dollar contributes one dollar toward the potential profitability of a project. Once sales dollars cover fixed costs, each additional sales dollar represents pure profit. A small change in sales volume can significantly affect profitability (Edmonds, Tsay, & Olds, 2011). So, therefore, if sales volume increases,
The second way is to achieve low direct and indirect operating costs is gained by offering high volumes of standard products and offering basic no-frills products. Production costs are kept low by using less parts and using standard components. Limiting the number of models produced to ensure larger producti...