BUS 1301 Gazette - Top 10 Mistakes

BUS 1301 Gazette - Top 10 Mistakes - Ten Mistakes Companies...

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Ten Mistakes Companies Make in Foundation By the BUS 1301 Course Leaders At the close of the practice rounds, Dr. McCormick challenged the Course Leaders to develop a list of common mistakes that companies make while competing in Foundation. Companies that successfully avoid the following ten mistakes will most likely see their performance rise. 10) Pricing at the Extremes. By setting a higher price, you might think that you’ll get more overall profit, this is false. For every dollar above (or below) the desired price range of a segment, you lose 10% of the sales for that segment. For example, the desired price range for a low tech product is $15 - $35. If you price your product at $38 then you’ve lost out on 30% of potential sales for the low tech segment ($38-$35=$3 3 x 10% = 30%). In addition, the first few rounds should be focused on building your financial base. Don’t drop your prices too soon or you miss out on much needed cash. 9) Forgetting to Buy Capacity. When a company has a new product coming out they need to buy capacity during the round before the product is released. Capacity is your factory. It takes time to get one up and running. If you fail to purchase capacity, then you can end up with a product designed and no way to make it. 8) Failing to Automate.
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This note was uploaded on 03/29/2010 for the course BUS 1301 taught by Professor Mccormick during the Spring '08 term at Baylor.

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BUS 1301 Gazette - Top 10 Mistakes - Ten Mistakes Companies...

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