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3 years ago

Why is price important to a company?

Business

1 answer:

alukav5142 [94]3 years ago

5 0

Answer:

B. It is a part of the marketing mix.

Explanation:

Price refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.

Price is important to a company because it is a part of the marketing mix.

Generally, a marketing mix is made up of the four (4) Ps;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

Price is generally considered to be a variable in the marketing mix that is most flexible because unlike other elements of production, it can be easily changed. An organization can decide to either raise or lower it's price depending on the nature of the market.

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1. describe the it architecture (both type of it architecture and its information system parts) at pepsiamericas before its cust

Liono4ka [1.6K]

Answer:

Information technology achitecture can be defined as a detailed description of the various information processing assets that is needed to achieve business objectives.

Explanation:

In our world today, businesses thrive on information. Information technology achitecture focuses on three basic tiers in an organization which are the server, middleware and client.

At PepsiAmericas, the next Gen initiative convinced executives that they needed to drive value from technology intiatives. Technology provided a common plartform for standardized business processes.

The first initiative by Johnsen created an IT governance board which included the ceo Robert pohland and the coo ken keiser.

Pepsi Americas recognised the achitectural and structural difference between each of its subsidiaries and itself.

On the otherhand, Operational excellence can be defined as the provision of reliable products and services to customers at competitive prices. whereas customer intimacy is targeting and segmenting markets and offers matching exactly to the demands of the niche.

Operational excellence means to strip off operational cost so as to deliver competitive price.

Pepsi Americas employees realised that driver turnover were no longer important. and that recessions would require that operations would change. Therefore, pepsiAmericas had to reevaluate their operations as demand was reducing and had to find a way not to waste resources.

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3 years ago

Which level of maintenance involves preventive and corrective procedures which are intended to restore equipment to a mission-ca

ivolga24 [154]

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4 years ago

What is local business

Helen [10]

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2 years ago

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Banks notes during the 1800's

stiv31 [10]

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3 years ago

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The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide inc

ra1l [238]

Question:

The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide incremental earnings of about $70,000 a year for 10 years. Carol Stanton has calculated the marginal cost of capital for this investment to be 8%. Conduct a capital budgeting analysis to determine whether she should purchase The Carlysle Card Gallery.

Answer:

Capital Budgeting Analysis is a process of evaluating how we invest in capital assets; i.e. assets that provide cash flow benefits for more than one year.

An organization has to take many decisions regarding the expansion of business and investment. To do that, they will require the help of NPV method and base its decision on the same.

Net present value is used in Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.

As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.

From the question the following are given:

Capital Expenditure = $450,000
Useful life of expenditure = 10 years
Annual return from expenditure = $70,000
Marginal cost of Capital = 8%

Step 1:

It's formula is given as:

Formula for NPV

NPV = (Cash flows)/( 1+r)i

<em>Where</em>

i- Initial Investment

Cash flows= Cash flows in the time period

r = Discount rate

i = time period

Computing with a spreadsheet, the Net Present Value of the Investment is given at $ 19,706.

Kindly see attached spreadsheet.

Judgement: Since the NPV is positive the investment is profitable and hence Nice Ltd can go ahead with the expansion.

Cheers!

7 0

4 years ago