BUSI 101 Lecture Notes - Lecture 1: Comparative Advantage, Yokohama Rubber Company, Cash Flow
Document Summary
Profitability, more importantly, the lack of it, is a significant issue that relajante must resolve. The misallocation of marketing resources, along with the longevity and condition of the building, and the burden of high expenses hinders the company"s ability to become profitable. Moreover, one must address how the relajante is not so different from its competitors their inability to define themselves from the crowd. Their pods are weak; they must find a way to generate new ones to define themselves from the competition in order to product more sales. Finally, relajante"s significant expenses due to high building maintenance fees, marketing and administration costs, direct materials, salary of the marketing manager, and wages have seriously cut into relajante"s profits. These expenses coupled with the marketing manager request of a bonus along with her hearty salary and commission, means the company"s expenses mount evermore high.
