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BYMP Week 5

Course: BUSN115 BUSN115, Spring 2011
School: DeVry Colorado Springs
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ExecutiveSummary 2. FiveYearMarketingPlan SeamusChipCompany TableofContents 1. CompanyDescription SeamusChipCompanycameaboutfromtheownerofSeamusIrishPupinSaint Louis,Missouri.ReneeSmithwastheownerandchefforSeamusIrishPup.Itbecame clearthatherallnaturalpotatochipswerequicklybecomingasignatureitem.Saint Louisresidentswouldorderherchipsfortogoorders.Theywerebeingservedatall...

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ExecutiveSummary 2. FiveYearMarketingPlan SeamusChipCompany TableofContents 1. CompanyDescription SeamusChipCompanycameaboutfromtheownerofSeamusIrishPupinSaint Louis,Missouri.ReneeSmithwastheownerandchefforSeamusIrishPup.Itbecame clearthatherallnaturalpotatochipswerequicklybecomingasignatureitem.Saint Louisresidentswouldorderherchipsfortogoorders.Theywerebeingservedatall eventssuchastournaments,tailgates,andparties.ItbecameevidenttoReneethatthe chipswereahitandshewantedtoexpandoutoftherestaurantbusiness.SeamusChip CompanymadeitsfirstappearanceatthelocalStateStreetDeli.Samplingandselling onspotiswhatstartedtheverybeginningofhernewbusiness.Afterhiringsomefellow friendstohelpout,thecompanywasabletoexpandclienteleto400+after2andhalf years. ReneeSmithcreatedthehandcraftedpotatochipsfromthebeginning.Sheknewthe servingsizes,howtocookthem,andhowtoseasonthem.Sinceitisherrecipe,sheis abletoteachnewemployeeshowtomanagethecraft.Shehasrecentlybeeninvitedto severalwinetastingeventsandlocalgrocerystorestosampleherproduct.Production hasincreasedoverthepast2andhalfyears,almostdoubling.Reneehasbeenableto hiremoreemployees,nowthatherproductisbecomingwellknown.SeamusChip Companyhashighpricedchipsbutalsohighqualityproduct. SeamusChipCompanystandsbehindthequalityoftheirchips,whichprovestothem thatbeinghighpriceddoesnotaffectthenumberofsales.Thecustomersappreciatethe qualityandwillpaytopdollarforthebestpotatochip.SeamusChipCompanywill expandoutsideoftheSaintLouisarea,intoothercitiesofMissouriby2016.Thelocals lovethelocallymadechipsandReneeSmithwantsotherstolovethemtoo. 3. StrategicFocusandPlan Mission ThemissionofSeamusChipCompanyistokeepallofourcustomersinmindwhile servingthemqualitypotatochips.Itisanhonorforustocreatethebestpotato chips,Midwestborn,sourcedanddistributed.Ourchipsareallnaturalwithno preservatives.Weuseonlyrussetpotatoes.Theyarecookedincanolaoiland seasonedwithourownuniqueseasoningblend.Ourchipsaremadebyhand, packagedbyhandanddeliveredbyustoourvaluedcustomers. Goals ForthecomingfiveyearsSeamusChipCompanyseekstoachievethefollowing goals: Nonfinancialgoals 1. Addanewlineofproductevery2years 2. Tobeamongthetop10localpotatochips 3. ToexpandoutsideofMissouriby2014 4. Acquire200ormorecustomerseachyear 5. Moveourshoptoanewlocation,sowecanexpandourcompanyand allthatwehavetooffer. Financialgoals 1. OpenanothershopinthestateofMissourisoourchipsarestilllocal 2. Obtainequityofatleast15percentonreturn 3. ExpandouradvertisingacrossthestateofMissouri CoreCompetencyandSustainableCompetitiveAdvantage Intermsofcorecompetency,SeamusChipCompanyseekstodistributehighquality potatochipsforanycustomertousenomatterwhatrestrictionstheymayhave.Weare abletodeliverourproducttoourcustomersandpreparespecialorders24hoursin advance. SeamusChipCompanyhasacompetitiveadvantagebecauseofitsproduct.Theproduct consistsofhealthyrussetpotatoes,thatarefriedincanolaoil,nopreservatives,andno transfats.Thereareothercompaniesthathavesomesimilaradvantagesbutsinceweare alocalcompany,wepromisethefreshestchipstoourcustomers.Toensurethe exceptionalpotatochipswefocusonusingtopqualityingredientsinourproduct. Customerserviceandsatisfactionisalsoahighpriority.Anothercompetitiveadvantage isthatSeamusChipCompanyislocallyownedandoperated.Wehandslice,season,and packageourproduct.Customerserviceandsatisfactionisalsoahighprioritywhichis whywehaveemployeestoworktomakesurecustomerserviceisalwaysmanaged. 4.SituationalAnalysis TheSWOT(Strength,Weakness,Opportunities,andThreats)analysisprovidesabrief descriptionofthepresentenvironmentinwhichSeamusChipCompanyisoperating. Thisisaquickoverviewofourpositionamonginternalandexternalforcesinfluencing ouroperatingstrategies. SWOTAnalysis Strengths Weaknesses Newalternatives Newsocializinglocation InternalForces Newproduct Newbusinesstoownersand customers Highdepthofproductline Expensivemarketingcosts Relativelyinexpensivesnack Hiringandtrainingof employees Opportunities Threats Nolocalcompetitors ExternalForces Otherproductsinstores NoPreservatives Beinganewproduct Excellentandconvenient location Localcompetition Ithasbeennoticedthatourcompanyhasmanystrengthsandweaknessestowardsour internalforces.SomestrengthforSeamusChipCompanyisthingssuchasnew alternativesforourcustomerswithanewsocializinglocation.Thismakesiteasierfor ourcustomerstoreceivetheproduct.Weareabletocreateahighdepthofproductline byproducingchipseveryday,24hoursaroundtheclock.Italsoisapositivetoour companythatwehavearelativelyinexpensivesnack.Eventhoughourcompanyhas manystrengthstherearesomeweaknessestoourstrengths.Thefactthatweareanew companyandoffernewproductthiscanbeaweaknessforourcompanybecausepeople arenotawareofourproduct.Whichthenleadstobeinganewbusinessitishardtoget ourfootinthedoortootherbusinessesandcustomers.Fromtheexternalpointofview wehavegreatopportunitiesbecausewehavenolocalcompetitorsthatproducethesame productasus.Therearenopreservativesandweofferanexcellentlocationforour customers.Somethreatstoourcompanymaybetheothercompetitorsinthechipaisle thatmostshoppersareusetoo. IndustryAnalysis:TrendsinPotatoChipMarket Healthydiet.Nationwidenutritionisbecominganimportantfactorinpeopleslives. Morethaneverbefore,peoplearetakinghealthandnutritionintoconsiderationbefore selectingwheretheyshouldbuytheirfoodandsnacks.Becauseourchipsarenaturally lowinfatandcalories,hearthealthysnacksarebecomingincreasinglypopular. Agriculture.MakingsurethatweusethebestpotatoesfrominsidetheUnitedStates.Ifit ispossibleforustobuylocalpotatoesthenwemakesureithappens.Potatoesarean easyandinexpensiveproductforustogetourhandson. PotatoChips.PotatoeschipsofallflavorsareabigpartofAmericanculture.Itisknown that9outof10Americanshavesomeformofpotatochipsnackintheirpantries.These trendsreflectafavorableattitudeforSeamusChipCompanybecausewecanreachout tomanycustomerstoreceiveourproduct. CompetitorsinthePotatoChipMarket PotatochipshavebecomeasignatureitemintheAmericanculture.Whenpeoplethink ofchips,peoplethinkofthemasanunhealthysnack.SeamusChipscanbefactoredas justanotherchipinthesnackaislebutthatsnotjustallthereistoit.Wekeepour customersinmindstartingwithwhatwefrythemin.Theyareconsideredaheart healthychip.Nopreservatives,notransfats,andtheyareglutenfree.Ourchipsrange about$1.00to$5.00abag.Thisdoesdependonthesizeofthebag.Weoffer1ozsnack size,3oz,and1lbfamilysizebags.Ourproductsarenothighinfatandcaloriesbecause wefrythemincanolaoil.Weofferaverityofflavorsaswell.Thereareseveralother chipcompaniesthatofferconsumersdifferenthealthyfacts,butnoneseemtohaveallof thefactorsthatourcompanyhas.Theotherestablishmentshavegainedareputationfor lowqualityandminimalcustomerservice.Wetreateachcustomerasaspecialpersonin ordertomeettheirsatisfactioninhopesoftheirreturn.Wemakesuretomakecustomer servicestopstohaveapersonaloneononeconversationwithourcustomers.Other companiesdonothavethisadvantagebecausetheyaretoobig.Havingtheadvantageof beingalocalbusinessweareabletotakevisittoourconsumers.Theclosestchip productionisabout100milesoutsideoftheSaintLouisarea.Theyarealsoahuge franchisethatsnotcapableofmakingweeklytripstotheircustomers. CompanyAnalysis SeamusChipCompanyisownedbyReneeSmith.Shehasexperienceinthe managementandmarketingaspectsofbusiness.Shehasalsoparticipatedinthestartup ofanewbusiness.HavingtheseskillsmakesiteasyforReneetosuccessfullymanage thecompanyandherstaff.However,Reneewillcontinuetolearnnewaspectsofthe chipindustrydailywhensheencountersnewsituationsandhavingtomakenew decisions. SeamusChipCompanyisintheintroductionstageofitsmarketingstrategy.Reneehopes tomakeitasuccessfulbusinessventureintheSaintLouisarea.Reneeishopingto spreadthecompanyspopularitythroughoutotherpartsofMissouri.Inordertoprovide highqualityproductswithhighqualityingredients,Reneewillworkincloseassociation withlocalfarmerstoreceivetopquality,nutritiouspotatoesfortheproduct.Itisagoal forourcompanytogivebacktothecommunityastheygivetheirsupporttous. CustomerAnalysis Descriptionofcustomercharacteristicsandhealthfactsarelisted. CustomersCharacteristics.ThecustomersofSeamusChipCompanywillbeofawide range.TheresidentsofSaintLouisareofmiddleincomeandarenaturalists.They enjoypurchasingallnaturalproducts.ConsumersaroundtheSaintLouisareaare startingtobecomemorehealthconscious.ItisbecomingaregulationoftheSaintLouis areatostartateamtomanagethehealthofthecity.Therearemanytouriststhat enjoyingtastingapartofSaintLouisandaresuretotakesomebackhomewiththem. HealthFacts.Partofourobjectiveasacompanyistoprovidecustomerswithaheart healthysnack.InthisSaintLouisareaitisbecomingmorepopularforconsumersto purchasehealthyororganicfoods.Customershavesaidthatisareasontheyarepleased withourproductbecausewethinkaboutindividualsandnotgroups.Thisbeingsaid,it preservatives,transfats,MSGandareglutenfree. 5.MarketProductFocus ThissectiondescribesthemarketingandproductdevelopmentforSeamusChip isanhonortosaythatarepotatochipsarelowcalorie,friedincanolaoil,haveno Companyandalsoprovidesinformationconcerningthemarketingandproduct objectives,marketproductgrid,targetmarkets,pointsofdifference,andpositioningof SeamusChipCompany. Market Segments ProductOfferings Original Hot&Spicy Sour Cream BBQ Total LocalGrocery Stores Local Restaurantsand Bars LocalDeliand Markets Tourists Attractions 3 3 2 2 10 3 2 2 2 9 3 2 0 1 6 2 2 0 0 4 3=large 2=medium 1=small 0=none Accordingtothemarketproductgridanditscalculations,itisinthebestinterest forSeamusChipCompanytosegmentitsmarkettowardlocalDelisandMarketsaswell as,touristsattractions.Thisisduetothefactthatlocalmarketsanddelisdontreceive asmuchbusinessasourlocalgrocerystores.Touristsattractionareasisduetothefact thattouristsarejustnotawareofwhattheyare.Ibelievethatforbothplacesweneedto makesuretohavesamplesgivenoutregularly.Also,weneedtotakeadvantageofany eventstheywillcomeupinthefuturetoseeifwecanbepartofthem.Thiswayitwill helppromoteourproductwhilelettingpeoplegetthechancetotastethem. MarketingandProductObjectives SeamusChipCompanysmarketingaimistopromoteitsproductashealthychip alternativetothenormalhighfatchipswhichmostothergrocerystoresandmarkets provide.Inordertoaccomplishthistask,SeamusChipCompanywillfocusoncurrent markets,looktoexpandintonewmarketsbyextendingourservices,andcontinually offernewproducts. TheprimaryobjectiveofSeamusChipCompanyistomarkettoourcustomersthatwe areanallnaturallowfatpotatochipforallevents.Sincewearelocatedbydowntown SaintLouis,wewanttousethistoouradvantagebycreatingasignatureSaintLouis item.Ourgoalistocreatethebestpotatochips,Midwestborn,sourcedanddistributed! SeamusChipCompanyalsodesirestoextenditsservicesinordertotapintonew markets.Graduations,tailgates,familygatherings,andotherspecialeventswewantto delivertoo.Deliveringourproductwillincreasethevolumewesellandmore importantly,willgiveourselvesexposuretoalargevarietyofpotentialcustomers. Tastesandpreferencesdiffersogreatly,amongourcustomerswemakeitagoalofour companytooffernewflavorsofproductasmuchaspossible.Also,lettingcustomers samplenewproductsotheycangiveustheirinputofwhattheytaste.Forexample,we mayofferanewchipflavorandmakepromotiondealswithotherrestaurantsand businesses.Usingthisstrategywillbenefitusbecauseifanitemdoeswell,wehavethe optionofaddingnewproducttotheshelvesofourexistingcustomers. MarketProductGrid Thefollowingmarketproductgridprovidesvitalinformationtohelpsegmentthechip market.AccordingtothesurveythatSeamusChipCompanyconducted,thefollowing informationwasanalyzedandutilizedtoformtheappropriatemarketproductgrid. Accordingtothemarketproductgridanditscalculations,itissuggestedthattheHot& SpicyBulkpackagingneedtobeidentified.Itmaybepossiblethatarecustomersarenot awarethatwecarrythebulkpackageinthisflavorortheyjusthavenevertriedthem. AlsoneedtofocusontheHot&Spicy3ozand16oz.bags.Thetotalsof48seemtobe lowerthantheothermarketsegmentsandweneedtomakesurethattheflavorand sizesarebeingpromotedeffectively. TargetMarkets OurtargetmarketforSeamusChipCompanyisusuallycustomerswhohaveahigher payingsalaryandarewillingtopayforthequalityoftheirfood.Therereallyisnoage groupforthisproductsincemostpeopletendtosnackonpotatochips.Normallyour customersarepeoplewhoenjoygourmetfoodandarewillingtopurchaseit.Most consumersarewillingtotrynewthingsandbuylocalproduct. PointsofDifference ThepointsofdifferencethatmakeSeamusPotatoChipsuniquefromotherpotatochip companiesaresetaroundfourmainpoints. 1. LocallymadeOurchipsarehandsliced,seasoned,packagedandproducehere locallygivingthefreshestpotatochiptoourcustomers. 2. NopreservativesWehavemadeourchipswithnopreservativessotheyplease everyonesneeds. 3. GlutenFreeIthascometoourattentionthatmoreandmorepeoplearestarting tohaveanallergytoglutenproducts,sowehavedecidedthatourchipswillbe glutenfreesononeofourcustomerswillhavetoturnaway. 4. CustomerServiceSincewearealocalbusiness,wehavemadeapromisetoour customersthatwewillprovidethebestcustomerservice.Thisentails;inside customerservicesuchasfollowupcalls.Alsooutside;ustakingthetimeevery daytovisitourcustomersandseehowthingsaregoing.Evenifitisjusttostopin andsay,Hi! Positioning Ourpositiontotheproductismakingsuretheyaresetinthestoresandmarketssoour customershaveeasyaccesstothem.Makingsurethatourshelvesarefullandwell presented.Thisistoshowourcustomersthatweputtimeandthoughtintoourdisplays sotheyhavethebestservicepossible. 6.MarketingProgram ThefourmarketingmixelementsfortheSeamusChipCompanymarketingprogramare listedbelow: ProductStrategy Providedisadescriptionofourproductline,productquality,andpackaging. Productline.SeamusChipCompanyoffersproductofallsizesandtwoflavors.Wehavea snacksizethatis1ozthatretailsfor$1.09.Thenwehavea3ozsizethatretailsfor$2.99 thenfollowingwithourfamilysizebagsof16ozthatretailfor$4.50.Allofthesesizes areforbothflavors;ouroriginalandhot&spicy. ProductQuality.Weareproudtosaythatourchipsarebasedaroundquality.Wemakeit aprioritytogiveourcustomersthefreshestpotatochips.Theyarehandpickedeveryday makingsurethattherearenoburntorunfavorablechips.Theyarehandseasonedso eachbatchisgivenfullattention.Nopreservatives,transfats,MSG,orglutenadditive areinourchips. Packaging.Sincetheenvironmentissuchabigpartofourcompany,wemakesureto givebackbyusingrecycledpackaging.Ithasacleancutdesign,inasimplisticbag.We handpackageourentireproductsoeachbagreceivesthebestconsideration. PriceStrategy Nowdays,everyoneseemstobepinchingforpennys.Ithasbeenmadecleartousthat foodpricesskyrocketallthetime.Keepinginthesamepricerangeasourcompetitors hasbeenakeyfactorfortheSeamusPotatoChipCompanybecausewedontwanttobe overpriced. PromotionStrategy Descriptionofourpromotionprograms,discounts,andcoupons. Instoredemonstrations.Tohelppromoteourproductwehavebeenabletoteamupwith someofourcustomerstoproducedemosforcustomers.Thisiswhenwemake appointmentswithstoresandmarketstosetupatableandletthecustomersinthestore sampleourproduct.Theyareabletogiveusfeedbackwhichalsoallowsustoreachout tonewconsumers. Discounts.Wehavebeenabletoprovideourcustomerswithdiscountsonourwebsite.If theyvisitourwebsiteandpurchaseproductfromourwebsitetheygeta15%discount forordersthatareproducedonline. Coupons.Whenwedoourdemoswepassoutcouponsthatgiveourcustomersachance tosavesomemoneywhenbuyingourchips!Wehavelearnedthatanythingcustomers canreceivefreeormoneyofftheywilltakeitandtheyloveit! Place(Distribution)Strategy SeamusChipCompanyisdistributedinitspresentmarketthroughmanydistributors. Placeslikegrocerystoresandmarketsbuytheproduct,stocksit,andthensellitoutof theirstores.Otherplaceslikerestaurantsandbarsbuyourbulkpackagingthenpricethe chipsintotheirmenusasasideforsandwichesandsuch. 7. FinancialProjections Inordertocalculateabreakevenamount,weaveragedthepricesofthepoundsof potatoes,seasoning,andpackagingtodeterminethepriceofthebagofchips.Thisprice isaveragedat$5.00.ThefixedcostsforSeamusChipCompanyare$70,000peryear, whichincludeloanpayments,equipmentcosts,andsellingandadministrativecosts.The unitvariablecostis$2.00.Thisincludesproductioncostsperbag,employeecostsper bag,andothermiscellaneouscosts.Usingthefollowingformula,wecalculatedthe breakevenpointforSeamusChipCompany: BEP=[FC(PUVC)] BEPQuantity=[$70,000($5.00$2.00)]=23,500bags BEPRevenue=23,500bags$5.00/bag=$117,500 Thefigurethatwascalculatedwasthenumberofbagsthatmustbesoldtobreakeven. Inordertodeterminethedollaramount,wemultipliedthisfigurebythecostofatypical bag,$5.00.ForSeamusChipCompanytobreakeveninitsfirstyearofbusiness,itmust have$117,500inrevenue. 8. Organization SeamusChipCompanyislocallyownedandoperated.Thereisoneowner,ReneeSmith. Sheoperatesthedaytodaybusinessofproduction.Shemakesthedecisionsconcerning products,ingredients,management,andpersonnel.BecauseSeamusChipCompanyisa newbusiness,Reneewilloftenworklonghourstoestablishagoodreputationforthe company.Therewillbenineotheremployeeswhowillbeemployedattheopeningof thecompany,andasthebusinessgrows,Reneehopestoaddmorepeopletothestaffat SeamusChipCompany. 9. ImplementationPlan Asanewbusiness,SeamusChipCompanyhasarelativelyshortterm implementationplan.Wehavescheduledthefollowingactivitiestobecompletedbythe givendates: Activities Dates Advertisementsinnewspapersand July,2012 socialmedia September, OpenSeamusChipCompany 2012 September Distributeflyers 2012 Begincouponsinsupermarketpapers January,2013 Reevaluationcustomersurvey April,2013 Researchcateringservices June,2013
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Hong Kong Baptist University - COMP - 0112
Chapter 11Multiple ChoiceIdentify the letter of the choice that best completes the statement or answers thequestion._1. The term _ refers to online or Internet-based illegal acts.a. malicious-logic programc. cybercrimeb. computer crimed. system f
Hong Kong Baptist University - COMP - 0112
After these three months, I found out my personality during the Career and Personal Planning. Otherthan knowing more about my own personalities, I have learnt how we can apply our own skills into ourstudies and choosing career. Before the lessons start,
Hong Kong Baptist University - COMP - 0112
IntroductionThe reaction between zinc and copper (II) sulphate is endothermic. If an excess of zinc powder is added to ameasured amount of aqueous copper (II) sulphate in a calorimeter and the temperature change is recorded overa period of time, the en
Hong Kong Baptist University - COMP - 0112
IKEA SWOT AnalysisDescribe what meant by a SWOT analysis.SWOT analysis is a tool for auditing an organization and its environment. It is the first stage ofplanning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses,oppor
Hong Kong Baptist University - COMP - 0112
Setting up a small BusinessMrs. Yarwoods BakeryF5Bus1 CandyTask OneA business plan is a report detailing how a new business sets out to achieve its aims andobjectives. Mrs. Yarwood needs to find out business plans are useful for starting a new busine
UCSD - CHEM 143C - Chem134C
Welcome to chem114C:Biosynthesis of MacromoleculesAlexander HoffmannSignaling Systems LaboratoryChemistry and BiochemistryNatural Science Building, Room 3328ahoffmann@ucsd.edu1Course Objective:The biochemistry of storage, inheritance, repair, tra
UCSD - CHEM 143C - Chem134C
UCSD - CHEM 143C - Chem134C
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UCSD - CHEM 143C - Chem134C
UCSD - CHEM 143C - Chem134C
UCSD - CHEM 143C - Chem134C
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Rutgers - BIO 101 - 101
Chapters 34,35,36 and 38 outlinesRoots and Mineral Nutrition - Chapter 36Tap root, fibrous roots, lateral roots and root hairsRoot tip, root cap and growthPlant Tissue SystemsEudicot (dicot) versus monocot rootPrimary Root Tissue SystemDermal: epid
Rutgers - BIO 101 - 101
Chapter 36: Roots and mineral nutrition:1. Absorption of positively charged mineral ions by the root is facilitated by (application)A.the movementB.the movementC.the movementD.the movementE.the movementAnswer: Dofofofofofclay particles i
Rutgers - BIO 101 - 101
12/12/11 Bio Final ReviewSessionCovalent bonds inBiologically importantmoleculesHydrogen H 1Oxygen O 2Carbon C 4Nitrogen N 3Question 7The following structure has no hydrogenatoms. How many shouldAnswer is 5 HBased on C =4 , O=2, H=1, S=2, N=3
Purdue - ECE - 201
Homework 1 SolutionsECE 2011. a) i(t) = dq/dt= -48e-2sin(48t) Ab)Figure 1: Current Across Boundary over Time2. a) q(t) = i()d from 0 to t= 2t + e-3t/3 - sin(4t)/4 1/3 Cb) i(t) = t , 0<t<2t-4 , 2<t<4q(t) = i()d from 0 to t= t2/2 , 0<t<2t2/2 4t
Purdue - ECE - 201
Homework 1Due: Wednesday, August 241(a) Suppose the charge transported across the cross section of the conductor for t 0is q (t) = e2 cos (48 t) C. Find the current, i(t), t 0, owing in the conductor.(b) The charge crossing a boundary in a wire is gi
Purdue - ECE - 201
Homework 2 SolutionsECE 2011. a) All of them are labeled with passive sign conventionb) i) P = iV = (1 A)(20 V) = 20 Wii) P = (3 A)(10 V) = 30 Wiii) P = (2 A)(20 V) = 40 W2. a) P1 = iV = (-2 A)(10 V) = -20 WP2 = (1 A)(6 V) = 6 Wb) 3 A Current Sour