What is the future value of your money?

Keith_Richards [23]

Answer:

Marketing Strategy Formulation

Goals indicate what a business unit wants to achieve; strategy answers how to get there.

Basic generic strategies

Overall cost leadership

The business works hard to achieve the lowest costs. The problem with this strategy is that other food trucks will usually emerge with still lower costs. The real key is for Chix and Waffles to achieve the lowest costs among those competitors adopting a similar differentiation or focus strategy.

Differentiation

The business concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market(s).

Focus

The business focuses on one or more narrow market segments rather than going after a large market. The food truck gets to know the needs of these segments and pursues either cost leadership or a form of differentiation within the target segments.

Goal Formulation

Goals are listed hierarchically, from most to least important. State the objectives quantitatively with a time line and a due date. Your goal at this point of your business plan is to execute the business plan in order to achieve the budgeted profits by the end of the first quarter of re-opening.

Examples

Goal #1: Achieve budgeted profits of __________ by July 31, 2021.

Strategy #1 - How are you going to do it? Develop a statement or series of statements that tell how you are going to achieve profit. Use your cost control course or purchasing course to list a series of actions that will achieve the following costs.

Actions: Food cost: __________

Bar cost: ___________

Labor cost: _________

Strategy #2

Goal #2: Achieve budgeted sales of __________ by July 31, 2021.

Strategy #1 - How are you going to do it? Develop a statement around one of the three generic strategies listed above.

Actions: Achieve cost leadership of our direct competition through ________________ (use of publicist, advertising, promotions, TV, etc.).

Strategy #2

Goal #3: Execute cultural values to embrace market to build concept loyalty and build repeat customer trial to 12 visits per quarter by July 31, 2021.

Strategy #1 – How are you going to establish a guest list and measure repeat patronage?

Actions:

8 0

3 years ago

Jeff opted to exercise his August option on August 10 and received $2,500 in exchange for his shares. Jeff must have owned a(an)

gtnhenbr [62]

Answer:

c. American put.

Explanation:

American options are defined as the type of contract that allows owner to exercise his option rights on any date of his choosing. This can even be on the date of expiration of the option.

European option on the other hand only allows option rights on the day of expiration of the option contract.

American put option allows the owner sell his option at any period within the contract life.

In the given scenario Jeff decided to sell his August options on on the 10th of August (before the expiry date). In exchange he recieved cash of $2,500.

4 0

3 years ago

Financial data for Stirling Inc. for last year are as follows:

Tom [10]

Answer:

profit margin: 6.04%

Assets turnover: 2.08

ROI 25.89%

Residual Income 137,330

Explanation:

profit margin:

income/sales = 326,480/5,404,000 = 0.060414507 = 6.0414507%

Assets turnover:

$\frac{net \: sales}{average \: assets} \\\\where:\\average \: assets = \frac{ending + beginning}{2}$

(2,561,000 + 2,629,000)/2 = 2,595,000 average assets

5,404,000/2,595,000 = 2.082466281 Assets TO

ROI

$\frac{net \: income}{average \: equity} \\\\where:\\average \: equity= \frac{ending + beginning}{2}$

(1,206,000+1,316,000)/2 = 1,261,000 average equity

326,480/1,261,000 = 25.890563%

Residual Income:

current income - income at desired RoR

That means calculate which income generates a ROI of 15% which is the minimum required return:

ROI = income / equity = 0.15

X/1,261,000 = 0.15

X=1,261,000 x 0.15 = 189,150

Now we calculate the diference between this number and the current income.

326,480 - 189,150 = 137,330 Residual Income

8 0

3 years ago

Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:

Galina-37 [17]

Answer:

Explanation:

Schedule of expected cash collection is a form of budgeted that list the time frames and the amount of payment expected from customers for the purpose of efficient planning.

Account receivables

60% * October sales = 67,000

November sales

40% * 320000 (November sales) = $128,000

$195000

December cash collection

60%*320000 (November sales) = 192000

40%*330000 (December sales)= $132000

$324,000

5 0

3 years ago

Hugh tried to convince irene about how good a new business proposal was, but irene presented some good counter arguments and sta

vfiekz [6]

By questioning the proposal done by Hugh, Irene showed the characteristic of being able to scrutinize properly certain things. This attitude is helpful especially when we are in doubt of the certain subject. By doing so, we can help those who proposed it to further do improvements on the certain subject.

3 0

3 years ago