Low-Calorie, Frozen Microwaveable Food Company

Long-term investment decisions involve various activities such as assessment of projects and allocation of capital to projects. Moreover, it involves various decisions such as choosing an appropriate manner of funding a project. The price of services rendered or products sold by a company plays a big role in the organization since it affects vital factors such as the profit, sales, and revenue. Therefore, it is important for entities to employ appropriate pricing strategy. There are different pricing strategies that can be used in pricing products or services. However, they are applied differently depending on the market, location, availability of substitutes, and other factors. The government plays a big part in stabilizing the country’s economy …show more content…
This paper will discuss low-calorie, frozen microwaveable food company in relation to long-term investment decisions. The structure will consist of six sections. The first section will illustrate the appropriate pricing strategy the organization might employ when conducting its daily business activities. The second section will explain the effect of government policies on production and employment. The third section will explain whether the government plays a role in the fairness of frozen microwaveable food industry. The fourth section will illustrate the capital related issues faced by an organization during …show more content…
Mass production insinuates that the company should attract a large number of customers to buy its products. Therefore, it would be appropriate to use the penetration pricing so that the organization can increase its market share. An increase in the market share means that the number of sales will rise (Tellis, 1986). However, the company expectation is to increase its production even after expanding. The penetration pricing strategy refers to a technique that sets the price of the product at a lower price than the intended price. The main objective of this strategy is to attract more customers. Similarly, it encourages customers to switch to the low price products. Additionally, its objective is to increase the market share or the volume of sales of an organization. In the short-run, company’s profits will reduce compared to the previous profit gained. However, this strategy will benefit the company in the end since the company will have a high market share, and this will be significant since the company is