Business Assessment of Two Case Business Proposal

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But how this will lower the costs is not specified; for example will it reduce the labor bills, will it reduce energy use, will it increase overall efficiency so the overhead per unit is reduced. It may also be argued that the investment may also have the potential to increase costs if there is a need to borrow funds far the investment needed, a cost benefit analysis may have been useful (Nellis and Parker, 2006). If the streamlining or equipment is for new products this could be risky.

The suggested strategy to alter the existing equipment, so there is increased value, reducing the potential for the buyers to default and cause a repossession is a good strategy, if this is possible. However the way this may be achieved is not specified, and without knowledge of the market structure it is difficult to assess if this is persuasive strategy.

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If it is achievable the way this will prevent repossession is viable.

Use of concepts of marginal cost and marginal revenue to maximize profit

Disagree

No

The recommendations do not make any direct reference to the concepts and use of marginal costs or marginal revenue.

Suggested mix of pricing and nonpricing strategies

Agree

Yes

There is a good mix of strategies recommended; dealing with both pricing an non-pricing approaches. Expansion into new markets and increasing differentiation through innovation may help t create long-term benefits and supports existing accepted strategies, such as those by Ansoff and competitive advantage as identified by Porter (Mintzberg et al. 2008). This will not only aid with increased sales, but reduce the potential for repossession.

Pricing strategies to reduce the price and stimulate more demand, which may be supprted if costs.....

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https://www.aceyourpaper.com/essays/business-assessment-two-case-86591
   

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