Eco/561 Business Proposal Essay

1254 Words Nov 8th, 2011 6 Pages
Business Proposal
ECO/561- Economics
August 11, 2011
Dr. Etta Egbe
Business Proposal The objective is to create a business plan that will provide convenience to patients, visitors, and staff at Singing River Hospital. At the same time reduce service cost, achieve ideal production levels, and add revenue to Subway at Singing River Hospital. Moreover, the business proposal will identify methods to minimize cost for Subway. Our business proposal consists of supplementing visitors and staff-related retail Subway food services at Singing River Hospital and is not created to substitute for patient meals. Following this further, healthy low fat menu choices will be offered to patients on restricted diets. This will benefit the food
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In this case the profit maximizing quantity is 60 sandwiches. This is the limit before the marginal profit becomes negative. The more sandwiches sold the higher variable cost are. Variable costs include raw materials, shortage, commissions, and labor. In addition, when large quantities are sold discounts are given to customers who follow with lower per unit for the revenue. Without this information it will recommended that an accountant is hired at a salary of 45,000 per year. The accountant salary will include taxes and benefits. Also computer equipment and accountant programs will be needed. Identifying appropriate strategies for products and services is the most important decision a business can make (Nagle, 2007). Firms compete to meet the demand of customers in several ways. However, our focus is to make a distinction between price competition and nonprice competition. Price competition involves discounting the price of an n product to increase consumer demand. Following this, nonprice competition focus on differ strategies to increase the market share. At Subway both strategies will be use to compete with competitors. Also we will do a survey with customers from ages 13 to 60. Also customers will be asked to rate our customer service, cleanness of the store, and the quality of the sandwiches. In addition each customer will be asked if he or she will come back to visit the restaurant and if recommendations be giving to family and

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