Fixed cost

Knowing all of the above alternatives, the smartest strategic plan for Mercan Systems, Inc. is to enter the market through a joint venture. After they chose a partner to enter into business with, it is most cost effective for them to expand into four regions initially and employ selling through dealer channels. Implementation Plan for the Chosen Alternative Choosing a joint venture is the best all-around entry process for such a large corporation. It allows the right amount of risk to reward…

two intersections, a rural and an urban intersection. This case can be argued from an act utilitarian perspective using cost-benefit analysis that the course of action that produces the greatest benefit relative to cost is the one that should be chosen (Harris et al., 2009). The cost-benefit analysis includes three steps: (i) assessing the available options, (ii) assessing the costs and the benefits and (iii) making a decision that is likely to result in the greatest…

The needs analysis means Human Resource Management at Google use various species of requirements analysis like the regulatory analysis, work analysis, and analysis of costs and benefits. The regulatory analysis specifies the human resource requirements by the present situation of the corporation. Whereas work analysis selects the specific needs in order to achieve business assignments. The program design means Human Resource…

$500M spread over twenty years. As the winner of the phase 1 project they were awarded the project with a fixed budget of $2.2M over 10-months. This type of contract would be identified as a Firm Fixed Price (FFP) contract. This means that Gary would have no flexibility of the project costs if the price on any of the components increases. This implies that Gary and SEC would assume any risk, if cost of the good or services increases and is more than originally calculated for (Schwalbe, 2009,…

limits. The first strategy would be to adjust its product mix. Mihocko produces five products, one at a time, throughout the year. Using data provided, Mihocko can determine an optimal production combination function based on potential sales, variable costs, particulate emissions, revenue streams and operating hours. One potential benefit of this strategy is that Mihocko could mathematically maximize its profit potential within the EPA policy emissions guidelines using a formula to determine the…

5% of the market share Do more market research and redesign the product roadmap to attract more customers. Invest more capital to improve the user experience and the quality of its website and app. Reduce operation cost and manufacture cost by moving 50% of factories to some lower cost areas. While implementing the above plan, there is no doubt that J.C.Penney will meet some issues and barriers. There are two major issues that we think may prevent J.C.Penney from applying the plan. The first…

of these people are in constant possession of an EpiPen, an auto-injector containing epinephrine used to reverse anaphylaxis (“Anaphylaxis,” 2016). However, in recent years the price of the EpiPen has increased substantially; a two-pack currently costs $609 (Pollack, 2016). Because Mylan commands around 85 percent of the epinephrine auto-injector market, almost all of those at risk have been affected (Herrick, 2016: 2). Concerns about drug price increases, like the EpiPen’s, have caused…

High Costs and Small Margins Thanks to technological advances, the airline industry boomed in the second half of the twentieth century. As the industry grew, operating costs grew with it. In 2014, the global airline industry spent over $699 billion to make a profit (Cros, 2015). High operating costs have reduced the profit margin for carriers and left them scrambling to find ways to expand their margins. To ensure effective and efficient operations, globally airlines will spend $174 billion…

no budget available for the current year and so are developed alternatives for each program financed. It is useful because it assumes that only projects that are efficient (cost / benefits) survive. On the other hand, documentation requires effort, so higher costs. Activity-based budgeting (ABB) aims to manage costs more effectively by authorizing the supply of only those resources that are needed to perform activities required meeting the budgeted production and sales volume.…

certainty the value of one based on the value of another. (Mark, H) For example: The total cost is $10 per unit on average; and if the number of units increases by 1, then the total cost would also increase by $10. Sometimes the result of actual total cost may either increase or decrease, which could be more than $10 or less than $10. In this type of situations, a statistical relation exists between the average total cost and the result. Delphi Method The Delphi method is one of the demand…