Future investing opportunities consider creating a

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Future Investing Opportunities Consider creating a new product line to maximize profits
MARKETING Functional Role: Pricing Sensors Promotions and Sales Budget Forecasting Impact of being a Broad Cost Leader: Lower Priced Products Lower Promotional and Sales Budgets
MARKETING DECISION CHANGES Decisions that would change: Earlier aggressively lower pricing on Dell Allocate more funds on Promotions and Sales Budgets
MARKETING POSITIVE IMPACT Decisions that had a positive impact: Lower Priced Products Higher Promotional and Sales Budgets
MARKETING SWOT ANALYSIS Strengths Market Share Sales Weakness Customer Survey Customer Accessibility Forecasting Opportunity One of two competitors with a product in every segment Andrews, Baldwin and Erie have left the Performance and Size segments. Threat Additional products launching/shifting into the low and high end segments Ferris has narrowed their focus.
MARKETING FUTURE IMPLICATIONS Pricing Our cost leadership pricing strategy has positioned our products as market leaders. We almost doubled all of our competition in sales and SOM. Promotional Budget We have achieved 100% customer awareness. Sales Budget We haven’t achieved 100% customer accessibility on any of our products. We have a higher ranking than our competition in every segment, with the exception of the traditional segment. Forecasting Not properly forecasting our future sales has impacted our SOM and sales.
MARKETING FUTURE DECISIONS Pricing Continue to price our products below average Continuously strive to lower variable cost Monitor competitive prices Promotional Budget Spend between $1.4-$1.45 million for each product to maintain 100% customer awareness. Sales Budget Continue to spend extra money on sales budget until we achieve 100% customer accessibility. Forecasting Forecast sales at least two years in advance and adjust capacity appropriately. Factor in competitor activity when planning for capacity, forecast and production amounts.
FINANCE Functional Role: Acquiring capital needed to expand assets Establish a dividend policy Accounts payable and receivable policies Selecting and monitoring performance measures Impact of being a Broad Cost Leader: Use long term debt to finance plant improvements Utilize stock issuance as secondary option
FINANCE DECISION CHANGES Decisions that would change: Determine the effects of issuing short term debt Waiting until year 8 to retire long term debt Only paying out dividends year 7
FINANCE POSITIVE IMPACT Decisions that had a positive impact: Not issuing too much stock in the first few years Retiring long term debt in year 8 Making most plant improvement changes in the first 4 years, to allow profits to recuperate in years 5-8

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