Supply and demand generally dictates the beginnings of pricing a product. Your targeted market, ability to serve them with a good product, the convenience to access your product. Credentials of the firm.
True, When a currency is experiencing high inflation, then it’s buying power is decreasing, and investors like me will not want to hold it.
They can import and then industrialize.
Answer: A blue ocean type of offensive strategy involves abandoning efforts to beat competitors in existing markets but instead invest a new market segment or industry whereby existing competitors are irrelevant and one which allows a company to create and capture nee demand (Option C)
Explanation:
Blue ocean strategy is the pursuit of differentiation and low cost by firms in order to create a new market space and demand. Blue ocean strategy is about the creation and making use of uncontested market space, which therefore makes competition irrelevant.
Blue ocean strategy are used for industries that are not in existence today, industries that tap the unknown market space and are untainted by competition. The blue oceans gives room for growth as demand is created and not fought for. A blue ocean strategy describes the wider potential and benefits to be enjoyed when an unexplored market is explore.
Answer:
The company must sell 800 units in order to earn the target.
Explanation:
This question requires us to calculate number of units required to be sold in order to acheive target profit. The answer can be calculated using simple break even calculation methodology.
To find number of units required to be sold we will divide sum of fixed cost and pre tax profit with contribution per unit.
Requires Sales = <em>(Fixed Cost + Pre tax profit)/ Unit contribution</em>
= (15,000+ (20,000/80%))/ 50 = 800 units
