1.) Outline a plan that managers in the low-calorie microwaveable food company could follow when selecting pricing strategies for making their products as inelastic as possible. Provide a rationale for your response.
As costs to produce frozen meals rises, such as an increase in the prices of ingredients, packaging, and shipping, the company may be forced to raise its prices to cover these extra costs. One thing a manager wants to do when deciding on a pricing strategy is to minimize the change in elasticity, and keep their product inelastic. Increased advertising is one way a company can lessen the potential drop in demand as a result of the price increase.
Once the frozen meal has reached maximum profitability, and has been on the market for a period of time, it is now in its mature stage. When manufacturing costs increase, the company must have a plan to maintain its sales despite the price increase. McGuigan, Moyer, and Harris state “This growth comes from focusing on product differentiation and commitment to building the brand” (McGuigan, 2014, P. 525). Advertising is a key factor to let consumers know about added values and product updates. In addition, brand-name advertising differentiates the product from the competition, and persuades the consumer to buy this product and not a substitute.
2.) Examine the major effects that government policies have on production and employment. Predict the potential effects that government policies could have on your company.
The government has enacted numerous policies and regulations that effect a firm’s production and employment. Government policies impact a company’s production processes to ensure product safety as well as workplace safety. These regulations, which are to protect consumers and employees, are monitored by several different government agencies. The production processes in the frozen food
CFO of a company has the responsibility in maximizing the shareholders wealth without affective the goals of the organization. CFO is responsible for making crucial financial decision of a company. CFO of a company has to play the role of a steward, catalyst, operator and strategist, no investment decision of the company can be made without the approval of the CFO. These roles and responsibilities clearly narrate their significant part in shareholders wealth maximization. There are many ways a CFO
issuer decides the type of bond to issue and how to arrange the issue. The issuer then gets ready for the issuance process. Step 2: A credit rating agency evaluates the health care institution. Step 3: A bond-rating agency then rates the bond based on terms and value. Step 4: The health care provider offers a lease to a government agency through a trustee. Step 5: The government agency delivers the lease to one or more investors. Step 6: The bond is sold to investor and the trustee gives the issuer the
•Chapter 1 INTRODUCTION TO CORPORATE FINANCE GOAL Today, corporate finance managers must make decision in a much more coordinated manner and generally has direct responsibilities for a control process. Because there are financial implications in virtually all segments of business, she/he must have sufficient knowledge of finance to work these implications into the area. At the end of this chapter, you should be able to: •
and investments. Corporate finance or financial management is related to decisions made by a company which involves what and how much assets should a company attain and secured to maintain the optimum level of performance and maximize the asset's value. Capital Markets refers to the market where the It is very important for the manager of a business to select a suitable source of finance because There are two types of financing, long term and short term to medium term financing. 1.1 Long Term
The total funds requirement of the firm. b) The assets to be acquired, and c) The pattern of financing the assets. The Finance Manager of a modern business firm will generally involved in the following three types of decisions — (I) Investments decisions (II) Finance decisions
shareholder value a business should follow all the opportunities. To utilize the limited capital in order to increase profit in business capital budgeting techniques is required. Capital budgeting is a long term asset management. According to the definition “The process of analyzing alternative long-term investments and deciding which assets to acquire or sell”. Capital budgeting is an important aspect for the company’s growth and productivity. To avoid company to financial problems capital budgeting is very
organizing, directing, co-ordination and control can be discharged effectively only if a concern possesses adequate finance. 6. The availability of sufficient finance with a concern will help the concern to offer fair return on investment to shareholders. 7. Finance is important in terms of payment of taxes to the government in
1. Introduction "A stock market is a spot in which long term capital is raised by industry and trade, the administration and nearby powers and it is viewed as capital market. The cash gets from private investors, insurance agencies, annuity finances and banks and is generally masterminded by issuing houses and vendor banks. Stock market is a spot where the securities can be sold and acquired at a concurred cost. Stock exchanges are additionally a portion of the capital market which gives a market
concerned with the process of maximizing shareholder value by implementing various strategies through long term and short term financial planning. It mainly consists of capital investment decisions to investment banking decisions. The principles of finance involves issues such as determining how to value a stock, cost of capital, and time value of money. These are just the few important issues that investment bankers deal with every day. In order to get in the field of corporate finance, it also requires
This shows that the skills obtained from the Financial Management module can be used by students in University to enhance their financial literacy. The topics addressed in the chapters of long term financing decisions and long term investment decisions are relevant to budgeting and risks related thereof and also the understanding of cashflows, therefore financial literacy is obtained by the students through learning the contents taught by the Financial Management
What do these terms mean to the financial aspect of a firm? In finance we discover that all decision making involves some type of risk (i.e. risk-return tradeoff). Therefore, the higher the risk the higher the return, with that being said if there is less than normal inventory held, there is a higher expected
Long term securities are similar to short term securities, where a firm may invest in human resources, bonds, stocks, real estate, equipment, cash, etc… The advantage of long term investments is that they allow a firm to gain a steady income over a longer period of time than short term investments. Some people may question why a firm may invest in human resources, not realizing that having a staff of workers helps reduce cost. Although this an indirect cost to an entity, but it can be beneficial
He introduced the idea of a person having “two minds”: an intuitive mind and a reflective mind. The intuitive mind forms quick judgments and are the things that simply come to mind. The reflective mind is the slow thinking, analytical part. Most decisions people make are made b... ... middle of paper ... ...al investor types based on research done by Michael Pompian. Barrett Ayers, the firm’s CSO and managing director states that the topics of focus include “risk tolerance, confidence level, and
Miller and his co-workers had made some massive successful investments in computer makers, such as Dell and Apple (Insider monkey, 2012), in the services sector, such
invest in one or the other and are happy about the decision is because they have both worked out well though the common factor is obviously the fact that the investor got in and out of the investment at the right time.. In fact, many investors have done well with both and they can both be good investments, depending on the market conditions at any given point in time. A certain amount of financial education and the knowledge of using any investment tool to advantage is critical. Why investors invest