Forner Company Essay

905 Words Jul 18th, 2013 4 Pages
De Castro, Allan Paul B.
11196734
ManAcc
Forner Carpet Company The case of Forner Carpet Company was about determining break-even points. This case requires to determine the appropriate price for a product in the market where the company is not a price leader. Forner Carpet Company, the market leader in high-grade carpet materials, plans to expand/diversify its production, and replace its equipment, hence, a need for fresh capital. In order to support this endeavour, Forner imposed a price increase on its L-42 product to boost income. However, market response has been unsatisfactory, with the competitors acquiring some of Forner’s share. That is where the problem arises. What pricing strategy should Forner Carpet Company
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If the giant players would not re-asses their current standings in the market in terms of prices, only time will tell when China equipment will dominate the industry. The trend now is that consumers are more price conscious now and they patronize products with lower selling price. The grade I give the group is 4.0.

De Castro, Allan Paul B.
11196734
ManAcc
Baldwin Bicycle Company Baldwin Bicycle Company are known to produce above-average quality bikes. Hi-Valu on the other hand was a rapidly-growing retail discount chain. Hi-Valu had a proposal to BBC. Under the new program, BBC would manufacture the “Challenger” line exclusively for Hi-Valu. The said line was a low-cost value bicycle sold at low prices under the BBC’s normal product lines. The terms of this proposal deviate from standard practice. At first it may seem to be all favorable to Hi-Valu in terms of prices, deliveries and terms of payment. However, BBC during that time was in dire need of a distributor for their units to be able to generate profit so the proposal of Hi-Valu was taken into serious consideration. If BBC would not accept the proposed challenger program, it expects to see stagnant sales for the coming years. Based on relevant cost analysis, it

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