From the tudy it is clear that the very basic two approaches to pricing are ‘cost-plus’ pricing and ‘market-demand’ pricing. There are various pricing strategies such as low or high pricing, permanent or changing prices, penetration or skimming pricing, fixed or variable pricing. No matter whether it is cost-plus or market-demand based pricing, firms are required to constantly estimate the true costs incurred for developing their product. An underestimation of fixed or variable costs can lead to loss. Firms, in order to stay competitive, are to generate a reasonable amounts of profits. Profit is the difference between selling price and total costs. If a firm simply fixes a price without due care of total costs incurred for making or marketing of that product, it is more likely not to generate a reasonable amounts of profit.This research finds that most organizations need to make strategic decisions about setting or accepting the selling prices for the products or services they market. If firms are in marketing condition where the price is automatically set by the market demand and supply forces, the firm will have little or no influence over the selling prices of its products or services. Coffee, sugar, rice markets are of this example. The firm in such condition is required to evaluate the total costs incurred and attempt their maximum to keep per unit costs below the per-unit selling price. In contrast, firms that make highly differentiated or customized products or are market leaders have relatively greater influence in pricing decisions. In such a marketing condition, the pricing decision will be influenced by the cost of the product (Drury, 2007, p. 248) An appropriate costing system Most organizations are depending on marginal costing system since it has long been found to be very effective for management in taking appropriate decisions and understanding accurate cost structures. Marginal
This paper briefly explains the importance of costs in pricing, forecasting techniques in relation to costs and revenues, most appropriate budgetary targets for a firm, methods to reduce costs, financial appraisal and financial statement to assess financial viability in the firm. …
IIN’s business focus is on ADSL-based internet access, reselling Telstra ADSL1 and VOIP services for businesses. The company has its own high-speed ADSL2+ Broadband network that reaches four million customers across Australia. IIN was the first ISP to offer the product, Naked DSL to customers.
The first includes the vertical and horizontal analyses of the financial data converting them into common size statements. The second is the ratio analysis, ratios being computed from the financial data provided in the case. Common Size statements: Numerical figures of financial statements can be expressed as percentages of other figures on the same statement.
Scientific techniques are systematic methods used to solve problems in day to day applications. In engineering, scientific knowledge is used together with social, economic and practical knowledge to design, create and preserve structures, machines, apparatus and systems (Nelson, 2011).
The performance of the employees and the organization is optimized with the adoption of the Balanced Scorecard that monitors and motivates the performance of the employees and their contribution to the major four performance fields of the organization, namely the financial goals, customer centricity, internal efficiency and the improvement in the stages of learning through work.
Introduction: The phrase 'Operations Management' is often applied to manufacturing activities. 'Operation' is defined as a 'planned activity involving many people performing various actions.' Collins English Dictionary defines 'Operation' as a 'process, method or series of acts especially of a practical nature.' These definitions broaden the scope of 'Operations Management' to include all management functions.
Parler Plc is a Kensington based private company which is in mobile phone manufacturing business. The company has a plan to start production of a new mobile phone for the target group of age 16-25 with many trendy features as per the requirement of
According to the report an effective leader in education is defined by various leadership techniques including cultivation of strong relationship with parents, developing individual students, promoting inclusive learning strategies, and setting coordinated long-term as well as short-term goals for the students.
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