This proposal therefore illustrates the various economic factors that will influence the operations of Lexiliap Fashion Boutique. This report lays particular emphasis on the economic dynamics of the proposed fashion boutique by including assumptions about the elasticity of demand and the market structure in the operational environment. Revenue To begin, revenue is an important factor for the success of Lexiliap Fashion Boutique. Capozzi (2013) highlights the importance of looking at the revenue prospects of a fashion boutique by recognizing the challenges of setting up and deriving gains from one. Fashion boutiques present a challenge to owners because they should find a balance between attracting and retaining customers on one hand whereas striving to achieving or even surpassing the set revenue limits (Gerring, 2007). The fashion boutique intends to use multifaceted promotional campaign to ensure that it drives sales volumes that will surely lead to increased volumes. In particular, the boutique will have an active online presence that will make sure that many clients are targeted and are aware of the enterprise’s products (Ferguson, 2008). Market segmentation strategies will be used to ensure that promotions are custom made to target the youth, women, men and children separately. The shop will also offer competitive pricing so that customers from competing firms are attracted. Determining the Profit-Maximizing Quantity The boutique will deal with different fashion items and accessories. As such, the challenge is to constitute a viable and standard profit maximizing quantity for each of the items. Since items like jewelry and clothing may have defects especially when volume purchases are used to source for the products, the proposed structure relies on this conditionality to propose a standard quantity to be ascertained. Given a unit cost of 10 USD, each product’s price; is it a dress, pant, bangle or ring will be compared against the unit cost value. Taking into consideration that the more items are sold, the higher the revenue; the report then sets the revenue threshold at 100USD meaning ten unit items. As a result, the more valued the item in the boutique, the lower will be its profit maximizing quantity. The projected dollar value for the business is shown in Appendix 1. Profit Maximization Profit maximization is at the core of any enterprise’s operations (Mankiw, 2011). The proposed Fashion Boutique will ensure that there is value for customers on one hand, and value to the owner on the other. To be able to strike this delicate balance between satisfying the needs of the customer whilst maximizing the profits needed for business growth. The marginal cost and marginal revenue concept can be applied to illustrate the technique that will be used to ensure profit maximization. This will be done mainly in the area of stocking for some commodities. Given that fashion industry is dynamic, it is important to stock the current trends for profit maximization (Boyes & Melvin, 2011). As a result, the boutique will review fast moving products and stock them in large number to derive more gains from the sales volumes resulting from the trending items. This is in accordance with the concept that marginal revenue should always be equal to marginal cost for profit maximization (Taylor, 2006). Subsequently, the boutique will require market information on the trending products. This can be obtained from relevant agencies, the media and other
Business Proposal for Lexiliap Fashion Boutique Insert Name Insert Grade Course Insert Insert Date Introduction Lexiliap Fashion Boutique is a new product that is set to revolutionalise the way individuals choose what to wear depending on occasion…
For example, the fashion which was very popular in early modern Europe may not necessarily be relevant in contemporary Europe and vice versa. In this paper, we shall discuss fashion and the various negative and seemingly negative effects it has on the different aspects of society.
However, like all things, there is room for much improvement. This business research proposal will explore several problems that, I as a customer, have recognized at this particular location, suggesting solutions the organization could implement to remedy the situations.
This has been achieved through strategies that were formulated to increase the revenue earned by the company. These strategies were; to increase on the quantity sold, through increasing the expenditure of the customers. The managerial department has ensured quality design, employment of quality and qualified labor in order to make the production process efficient and successful.
The quality of material and design has massive impact on the performance of the cloths offered by the different companies. The major challenge in the industry is the ability to understand the changes in market preference and develop products that cover the changes in demand.
In the United States, the copyright Act denies protection to any article of utilitarian function. This implies any article, which is used in everyday purposes beyond artistic expression. Fashion designs fall in this category of artistic work with utilitarian function.
is of providing value for money to all clients so that they make Lexiliap Fashion Boutique their choice destination for all their fashion ware and accessories’ needs. This proposal therefore illustrates the various economic factors that will influence the operations of
on and communication technology has gained much prominence and is continuously shifting consumer behavior as far as reading culture and audio-visual communication is concerned (Barclay, 2012). It is therefore important to note the increasing competition in efficient conversion
8 pages (2000 words)Research Paper
Hire a pro to write a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you an essay for FREE
Contact us via Live Chat, call us at +16312120006or send an email to email@example.com