assaignment 2

785 Words4 Pages
QUESTION NO 1: (A). Identify factors that affect budgeting process at Network Computing Devices, Inc. - The first factor is the general economic condition that will influence industry demands and seeks for computer products, that’s mainly may due to; products and related merchandise amount, customers’ palate and priorities along with their anticipations and revenue. Sometimes financial and economic problems and crises could appeared around the world and that may result in a decline in company products orders that requested by the customers. Economic conditions are considered to be sound or positive when an economy is expanding, and are considered to be adverse or negative when an economy is contracting (, 2014). The company here need to be aware and very careful from these problems not to harm their budgetary planning along with not to lose the competition against others. - Next one is the market acceptance of new products that presented by the company and its competitors. Marketing acceptance defined by (, 2014) as; condition in which a good or service satisfies the needs of a sufficiently large number of customers to continue or increase its production or availability. Products are required to be suitable with current practices and correspond with customers’ sitting conditions. Companies also in need to find the particular markets that be content with new inventions and bypass substantially or financially hazards that may come with. Also they are required to avail an unfilled customer demands. In many cases some companies generate and distribute new product that had new and special specifications in particular markets, but these products are not desirable and suitable i... ... middle of paper ... ...or more competitive in those markets. For example; for most of the 1990s, the U.S. dollar appreciated against most of the other world currencies. As the dollar increased in value, U.S. companies doing business in other parts of the world saw their profits, earned in other currencies, decrease when converted to dollars (Folsom & Boulware, 2009, p. 172). This problem is more famous in the third world countries that had weak to medium economic situation and suffered from improve or decline in the value of their local currencies against the US dollar in some particular periods. The company here are required to do some special arrangements to deal with that condition every time is happen. For instance; they can reduce their prices or make some discounts when this situation take place to remain compete in the markets against other local or even international organizations.

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