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andriy [413]
3 years ago
9

AnyCo is a US consumer product company enjoying broad distribution and dominant market share in its domestic market. An opportun

ity exists to penetrate and perhaps dominate an offshore market, PseudoLand, worth an estimated $20 million in sales per year. Domestically, however, each dollar of revenue consistently produces the following income statement (P/L):Sales $1.00Delivered Cost of Goods .55Gross Profit $ .45Selling Expense .06General & Admin Expense .30Operating Profit $ .09AnyCo has already begun exporting to PseudoLand and, as expected, commissions (selling expenses) are higher overseas. AnyCo’s board of directors is committed to maintaining the company’s current capital costs, and is attracted to this opportunity because it returns nearly the same operating profit (as a % of sales) as its current business in the US. However, the company’s managers want to diversify the offshore distribution strategy in order to maximize penetration. Three modes of distribution have been identified:O An export company has taken charge of the effort to date, but this arrangement is not exclusive.O Selling directly to PseudoLand consumers over the internet.O Using a local distribution company to sell products in PseudoLand.Through research, Anyco has come to believe that the current export company can, at best, effect 50% penetration of the PseudoLand marketplace. The internet could add an additional 20%. A local distribution company would be a bit more powerful, capturing as much as 30%. Selling expenses are 7% for the export company and 4% over the internet. However, the local distributor has balked at Anyco’s standard 6% commission, and is demanding 10%. Negotiations with the local distributor look inevitable.1. Determine the best alternative to a negotiated agreement (BATNA) and a reservation sales commission above which, the company would walk away without an agreement. Using not more than one typed page (single spaced) and one spread sheet, explain your findings.
Business
1 answer:
brilliants [131]3 years ago
8 0

Answer:

AnyCo's BOD should opt for Over the internet distribution mode.

Explanation:

As per the attached sheet, please see that considering the different cost of various alternatives, over the internet distribution mode seems to be the most lucrative one.

Download xlsx
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Green Frog is an environmentally friendly firm in the cosmetics industry. Even though Green Frog is environmentally friendly, th
kakasveta [241]

Answer:

D) Growth in earnings per share averaging 15% or better annually for the next five years

Explanation:

First of all, objectives must be well defined and measurable. That is why increasing profitability is a good idea but not a very good strategic objective, since a 0.00001% growth in profits will still comply with it. The same applies with growing market share.

Improving product quality will help improve total sales but it is not a financial objective.

The only financial objective that is precise and measurable is option D, which sets the goal of increasing earnings per share at least 15% every year.

5 0
3 years ago
A computer manufacturer sells laptops to retail stores for $450 each. If the manufacturer pays $200 for all of the components in
a_sh-v [17]

Answer:

The answer is $75

Explanation:

The formula to reach out value addition is

Value Addition=Sales Value-Cost of manufacture or input added

In our Case

Sales Price=$450

Cost of Manufacture or Input=200+75=$275

So by entering above numbers in Value Addition formula we get

Value Addition=$450-$275

Value Addition=$175

5 0
2 years ago
When a firm uses K units of capital and L units of labor, it can produce Q units of output with the production function Q = K√L.
DanielleElmas [232]

Answer:

STC = 20K + 25L = 20*5 + 25*[\frac{Q^2}{25}] = 100 + Q^2

Explanation:

We are given:

K units of capital and L units of labor.

•Each unit of capital cost = 20

• Each unit of labor cost =25

• Level K is fixed at 5 units

We are told production function Q = K√L

Using the production functions and the values given, we can get that Q=5√L.

To find Q, the amount of labor will be given as:

L = \frac{Q^2}{25}

Therefore, the Short run total cost function (STC) will be:

20K + 25L = 20*5 + 25[\frac{Q^2}{25}] = 100 + Q^2

7 0
2 years ago
Unimart Precision Manufacturing
Anarel [89]

Answer:

Results are below.

Explanation:

Giving the following information:

Company 1:

Beginning inventory Merchandise $253,000

Cost of purchases 600,000

Ending inventory Merchandise 153,000

Company 2:

Beginning Finished goods $506,000

Cost of goods manufactured 930,000

Ending Finished goods 147,000

<u>To calculate the cost of goods sold, we need to use the following formula:</u>

<u></u>

COGS= beginning finished inventory + cost of goods manufactured/purchased - ending finished inventory

<u>Company 1:</u>

COGS= 253,000 + 600,000 - 153,000

COGS= $700,000

<u>Company 2:</u>

COGS= 506,000 + 930,000 - 147,000

COGS= $1,289,000

7 0
3 years ago
Which of the following is an advantage of internal recruitment? a. It leads to the generation of new ideas through tunnel vision
Georgia [21]

"It improves organization fit because current employees understand the company's culture" is an advantage of internal recruitment.

<u>Option: C</u>

<u>Explanation:</u>

Recruitment are of basically two types on the basis of staff location like internal and external. Each firm is more comfortable to recruit departmental candidate because the current staff is well aware about the firm atmosphere.

This helps to save time of training to them, better fluency in work, trust factors, etc. Although external recruitment is also need to invite fresh talent with more energy and enthusiasm towards work profile, thus to train them and bring on specific track, training and meetings are needed to held.

4 0
3 years ago
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