Business simulation Assignment Example | Topics and Well Written Essays - 1500 words

Business simulation - Assignment Example Computer Repair business averages ?8,900 in gross monthly profits. The owner/manager believes that it can achieve ?12,000 in gross monthly profits, through promotions and expansion of product lines. Currently, the business employs two part time sales staff and one full time book keeper/receptionist. Though the space currently available for formatting new machines is adequate, nearly one third of it is used to store inventory, which includes new product models for resale. With expansion of services and the need to utilise space more efficiently, the business must consider alternative supply chain processes, such as JIT systems. It must also consider the types of products to offer, such as business machines with networking capabilities. Aside from increase monthly gross sales, the business has identified objectives of greatly increasing its individual customer base and greatly increasing the number of business customers, so that dividing the products into separate business units is fea sible. A thorough analysis of the business environment will allow the computer sales business to make decisions about expansion that are most suitable and to develop a marketing and promotions programme that aligns with expansion of product lines. ... Political Business tax rate remains 21% at projected profit increase, according to Adam & Brown (1999, p.13). Employee vs. Self employment (2 National Insurance taxes for self-employed, affects pool of applicants. Relationship with nearby University critical for technician. Environmental concerns of policymakers and citizens. Consumers want ‘green business’ initiatives. Costs of ‘going green’? Economic Consumers tightening budgets, spending less on new products or choosing more affordable products. Costs for fossil fuels may influence supply costs. Social Social networking for younger users (teens and young adults) may offer an additional channel for promotion. Consumers want value and personal relationship in product sales. Technical Requirements for networking and customization rely on technical knowledge. Use of JIT inventory systems reduces inventory related costs. The SWOT analysis helps the computer sales business determine the type of growth strategy and promotions strategy to be developed, by conducting an honest assessment of the organizations physical and financial assets, its potential capabilities, current shortcomings and potential future challenges. The SWOT analysis table below provides management with greater insights, to develop a successful business strategy. The analysis considers the most important and influential factors in expanding Computer Sales. Strengths Located in business centre of city, exposure can be greatly increased. Relationships with suppliers already established (Dell and Hewlett Packard). Weaknesses Lack of promotions plan, currently relies on word of mouth. Too much physical inventory takes up space and increases costs. No technical expertise for customization. Opportunities Increase awareness through

Demand and Supply Analysis Essay Example | Topics and Well Written Essays - 1250 words

Demand and Supply Analysis - Essay Example b) The relationship between the quantity demanded and the price is of negative relationship while that between quantity supplied and price shows a positive relationship. Quantity demanded of a commodity according to the theoretical information is the quantity of a commodity that a buyer is willing and able to purchase at the prevailing market prices (McEachern, 2011). When prices go up few buyers will be willing to buy depending on the nature of the good. This shown by the negative gradient depicted by the demand function of -2, it means that for every 1 unit increase in price quantity demanded reduces by 2 units. Quantity supplied on the other hand is with reference to suppliers and producers. It is defined as the quantity of goods and services that a provider is willing and able to produce and supply at the prevailing market prices (McEachern, 2011). Suppliers are always willing to supply more when prices are high as opposed to when they go down. This is depicted by the positive gr adient of the supply curve of +1. This means that if prices are increased by 1 unit, quantity supplied also increases by 1 unit. c) The slope of the demand function is -2; this means that an increase in price by 1 unit solicits a reduction in quantity demanded by 2 units. d) The slope of the supply function is of +1. This means that an increase in price by 1 unit solicits an increase in quantity supplied by the same unit. 12. ... 1. Among the ten countries, price elasticity of demand for food is high in Tanzania and it decreases sequentially with Tanzania having the highest price elasticity all the way to the US having the lowest elasticity. This is explained by the general principle that with general increase in income demand for food normally goes down while that of luxury and junky foods goes up (Tucker, 2008). Developing countries still have a population that is still of the need of basic needs like food, this explains the reason as to why developing countries like Tanzania have high price elasticity of demand. Both the quantity demanded and supplied of the commodities in Tanzania is composed of food and food products. The agricultural products also add to the supply of food into the economy (Tucker, 2008). Consumers in developing countries with relation to food are related to then food prices and their income. Rise in income in such countries leads to an increased consumption. Changes in prices also thre aten the food consumption patterns in such countries. The only food consumption that is not threatened is that of basic staple foods. This implies that there is high purchase of foods and foodstuffs in Tanzania than the same is for the US. High purchases are realized in staple foods. On the contrary, consumption of high value foods like meat experiences high purchases in the US (McEachern, 2011). 2. Fig. 2: Tax effect on demand and Supply 3. 4. 5. 6. 7. 8. 9. 10. 11. Before taxation is imposed on the commodity, the equilibrium quantity is Qe while the equilibrium price is Pe. Tax has the tendency of normally increasing prices of commodities as well as