BU362 Study Guide - Final Guide: Sunk Costs, Opportunity Cost, Fixed Cost
Document Summary
Want to grow, hired marketing manager who proposed advertising budget after reading a study. Do(cid:374)(cid:859)t sa(cid:455) a ap, instead use (cid:862)hsip(cid:863) => how soon is possible (what prevents us from making a decision right now) Stakes: ,000, partnership with excelsior, cost of hiring another rep, profit up or down, partnership with homemart, reaching retail sales more. Criteria (a,b,c) 1)breakeven in y1 or y2: mroi >= current roi (or just increases profits) (a) 4)keep excelsior happy (a: increase market share in (n. ontario) (a) (b?, increase value of gordon power tools (b+, gpt has capacity to do (cid:858)it(cid:859) (cid:894)a(cid:895) Hire sales rep for better retailer coverage. Penetration (existing product, existing market), produce dvlp (new product, existing market), market dvlp (new market, existing produce), The co(cid:373)pa(cid:374)(cid:455)(cid:859)s gro(cid:449)th rate is (cid:374)ot alig(cid:374)ed to the i(cid:374)dustr(cid:455) gro(cid:449)th rate. I(cid:374) additio(cid:374), their (cid:373)arket share has been decreasing as the industry was growing. Price wholesalers: 0. 60 => 20% of then price is . 60.
