Question

1. Assume that Bob Burn, a CEO of Global Foods, Inc. asks his board of directors to approve a decision to enter the soft drink business (energy drink business).
What arguments can he make to convince his board to approve his proposal in regards to the following:
2. How to produce
3.
4. For whom to produce
5. What price to charge
6. Elasticity
7. Government rules and regulations specially if he wants his factory to be in Czech Republic

Answer 1

Answer:



Explanation:

1. First of all we should clearly decide which technique we are going to use while producing the soft drinks. Soft drinks should be prepared accordingly with the safety standard fixed by the European Food Safety Authority (EFEA) as Czech Republic is the part of the Euro Zone. Soft drinks should have the health ingredients of natural fruit juice without any artificial essence. Soft drinks should have the mix of pure fruits juice and pure mineral water. And any toxic and bad micro organism should not mixed with water used for soft drink mix.

2. We need to make research on current taste and preference of the customers all over the world. This research should be done nook and corner of the world in order to compare the choice of the people towards one flavor of soft drinks. After doing field study of consumers pulse, we need to search for the wholesaler stockists to whom we should sell the soft drinks with nominal market price. Such wholesaler stockists should know the current market trend of all the products which are dealing in the current global market

3. After deciding the destination for whom to market and produce, then we should decide on fixing the price for the produced products. We should consider the cost of production and also allocate the optimal and reasonable inputs while fixing the prices. We should fix the price accordingly with the marginal cost should not exceed the marginal revenue. And also we should consider the Tax inclusion in fixing the price.

4. Elasticity of the goods must be recokned with the price elasticity of the demand of the produced products. If the demand of the products tends to enhance we should fix the price accordingly for the goods without affecting the purchasing ability of the people.

5. Business registration should be trade office of Czech Republic. The registration procedures should be completed within five days. All registration for the new business set up should be done in Municipal Court in Prague with the fees 12000 .