team for advice. They will rely on your report to make critical decisions about their organisation and prepare themselves for the changes. To make a sound assessment and report substantial independent research and judgement is required. Your team has been assigned to prepare a business consulting report focusing on pricing of SPDL’s Day Link service. In the end, you should be able to give a recommendation on how to price the Day Link service. In order to give an excellent recommendation, you shall integrate cost and market information . In a prior consulting project, another team of your company worked already on estimating the costs for SPDL’s Day Links service. They found that ( based on prior year’s data ) one trip costs SPDL about 20 to 25 AUD. 1 This cost-information may be a useful starting point for your task. 1) However, also consider the market: Assess competitors and customers. For example, how is SPDL positioned in the market? Which features of Day Links are most relevant to SPDLs main customers? 2) Integrate the cost and market analysis to develop a pricing strategy for SPDL’s Day Link service. SPDL targets an annual profit of about 30 to 50k. 2 1 Find details to that work in the Excel file Operational Information . You may as well find supplementary resources on Canvas useful. The conclusion of the prior consulting team that the minimal costs are about 20 AUD are based on an estimation using Time Driven ABC and hence idle capacity costs aren
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