View the step-by-step solution to:

GROUP PROJECT PRICE INFORMATION Debt and Equity Capital. Debt = $500,000 @ 8% per annum; interest-only loan. Equity = $500,000 @ 14% per annum ROI to...

added file the information about the price. you can read my first part did now you do my product, pricing, placement, and promotional strategies for marking plan.

GROUP PROJECT PRICE INFORMATION Debt and Equity Capital. Debt = $500,000 @ 8% per annum; interest-only loan. Equity = $500,000 @ 14% per annum ROI to investors. Cost of Production and Placement. Fixed and variable cost per unit to deliver to customer = $50 per unit. Advertising charge = 20%; sales promotion charge = 18%; additional costs = 3%. Adoption and Diffusion Rates. 1 st year = 3%; 2 nd year = 7%; 3 rd year = 18%. New Business Creation Rate. Assume 144 million in workforce, and 9% new business venture rate. You will assume your segments are an accurate representation of the “workforce.” So, if one of your segments is “10%” of the “population” (i.e., workforce), that segment represents or indicates (10% x 144 m. x 9%) expected, new business starts during the next year from that segment. Complete this calculation for each of your three segments; use this as your market potential for the next three years. Adoption and diffusion (market share) is expected to be 3% during year 1, 7% during year 2 and 18% for year 3. If there are 100,000 new business starts expected, market share in units for year 1 would be 3,000, year 2 would be 7,000 and year 3 would be 18,000. Now, price becomes important; it will determine revenues, and a profit if acceptable to or within your target segments. Use the aforementioned “facts” to develop your 3-year Income Statement for this product.
Background image of page 1
Making plan Section 1: Description of Business Enterprise Mission : Our mission is to provide every customer with the most effective and efficient software and tools to become a strong and success-driven business. Vision: Our vision is to help the business world run smoother by combining our leadership in software applications and analytics with our consistently innovative technology. Section 2: Market Analysis Related to Competitors
Background image of page 1
The current market has two competitors we are the most aware of. Our products features, attributes, and benefits focus mainly on new businesses that can start successfully. Features Attributes Benefits Our Company 1. Managerial Reporting Capabilities 2. Integrates with Peachtree and Intuit Turbo Tax 1. Receiving Daily Reports & Staying Up-to-Date 2. Many elements coincide with each other 1. Gives a feeling of self esteem and security because people believe in a sense of accomplishment in their work. Gives a feeling of security because it has a system to access everything. Since the system has access to everything, it connects innovators to a secure level which increases efficiency and profitability 2. Provides accessibility by benefiting the accounting and bookkeeping area of big businesses. Saves money because businesses will not need to hire someone to deal with the integration of different programs Business Plan Pro 1. Links with Excel 2. Custom Templates 1. Updates financial values in a business automatically 2. No limitations on plans 1. Gives a sense of security because it eliminates the need for someone to do this leading to profitability. 2. Gives a high level of convenience because businesses can make the product fir their own need Plan Guru 1. Integrates with Excel to Forecast all 3 Financial Statements 2. Framework for Strategic Planning 1. Creates all 3 financial statements with no input from people 2. Time management 1. This aspect gives a sense of control to businesses because they can move forward faster with confidence, eliminating the need to rely on people 2. This provides self-worth because decisions can be made with poise Strengths Weaknesses
Background image of page 2
Show entire document

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question