Lemonade Stand Project In this project I ran a lemonade stand for 30 days. I had a rough beginning, but as the game went on I began to learn about what the customers wanted. I made a net profit of $83.11 dollars. I figured out that I needed to make sure I didn't buy too much ice, or it would melt and I'd be wasting money on ice. I ended the game with a 100% in satisfaction, and popularity. I figured out the temperature had a correlation with the demand of lemonade. If it was hot, people wanted more ice, and were willing to pay more money for a cup of lemonade. If it was cold, people did not want much ice in their lemonade, and didn't want to pay much for a cup. The customers were more willing to buy a cup of lemonade if it had a good balance
Firstly, to assess potential profitability, we sought to project Coors’ anticipated percent market share for the two-county market to determine the potential consumer base for Larry’s distributorship. From the following calculations, we found that the projected market share is sufficiently large to justify Larry’s investment.
Star Appliance is looking to expand their product line and is considering three different projects: dishwashers, garbage disposals, and trash compactors. We want to determine which project would be worth doing by determining if they will add value to Star. Thus, the project(s) that will add the most value to Star Appliance will be worth pursuing. The current hurdle rate of 10% should be re-evaluated by finding the weighted average cost of capital (WACC). Then by forecasting the cash flows of each project and discounting them by the WACC to find the net present value, or by solving for the internal rate of return, we should be able to see which projects Star should undertake.
A couple of Squares has a limited capacity for which to produce their products and smaller companies tend to have larger fixed costs than bigger companies. Therefore, A Couple of Squares must maximize profits in order to ensure that they will stay in business. A profit-oriented pricing objective is also useful because of A Couple of Squares’ increased sales goals. A Couple of Squares increased their sales goals due to recent financial troubles. Maximizing profits is the easiest way to meet these sales goals due to the fact that A Couple of Squares has limited production capacity. The last key consideration favors a profit-oriented pricing objective because A Couple of Squares offers a specialty product. A specialty product often has limited competition, therefore can be priced on customer value. Pricing at customer value will maximize profits as well as customer satisfaction. A Couple of Squares’ lack of production capacity, increased sales goals, and specialty product favor a profit-oriented pricing
When attempting to define a well-conceived strategy, one must be fully aware of both the strengths and weaknesses that one inherently possesses within the market. When speaking of the Lagunitas Brewing Company, we see a company of profound strength as well as possessing several weaknesses that act as hazardous liabilities. Perhaps the first example of a weakness is a continued lack of foresight, demonstrated through inaccurate projections for their business regarding hitting maximum capacity. Following the purchase of an 80-barrel brew house which was expected to put off hitting maximum capacity for ten years, it was found that only two years later LBC was forced to purchase a 250-barrel automated brew house to meet demand. While this reactionary approach is a weakness, we cannot forget LBC’s first strength in having amassed a considerable net-profit since the acquisition of the second brew house, nearly tripling net 2009’s net profit of $563,000 to 2010’s of $1,500,000.
Found in the case study entitled, Promotion from Within at Citrus Glen, is a staffing process concern. The Citrus Glen Company, based in Florida, is a juice producer that supplies orange and grapefruit to food processors, grocery stores, convenience stores and restaurants in the United States. With rapid growth over the last few years, the HR vice president, Mandarine “Mandy” Pamplemousse, has been worried about how to staff the ever-expanding array of positions for Citrus Glen. Her concern is how to hire and promote enough individuals who are qualified for the needed positions. When Mandy is trying to staff internally, she uses a contractor based in Charlotte, NC called, Staffing Systems International (SSI). When positions become available that are appropriate to staff internally, she sends a group of candidates for the position to SSI to participate in the assessment center. The candidates are in the assessment process for three days. Mandy receives the results with recommendations, a few days after
The projected revenue of sales for our first year is based on the cost of production, at .25 per disposable water bottle nipple, including packaging. Purchase options will consist of; travel size of 5 sold at $5.57, 12 nipples sold at $11.00, 25 nipples sold at $22.50, and 50 nipples sold at $42.00. The projected sales will be set at a minimum of 12,775 individual packages sold daily, which equals a revenue of $3,421,875 annually. Listed below is the expected breakdown:
Based on the graph above, we can see that when the price of East Tuna increases, the sales of East Tuna decreases. The correlation (Refer to correlation) can prove that the relationship between the price of East Tuna and the sales of East Tuna are negatively related and it is fairly strong (-0.6159). The price of Kings Tuna is negatively related to the sales but with a weak relationship (-0.0247). Furthermore, the sales of East Tuna and the price of Lescos Tuna has a positive but weak relationship (0.1852). This means that Lescos Tuna is a competitor for East Tuna because when the price of Lescos Tuna increases, the sales of East Tuna increases as well. A software
Three concepts that can be applied to this question are elasticity of demand, cost-benefit analysis, and Keynesian economics. Elasticity of demand has to do with price change, and the sensitivity level that is associated with certain price changes. Generally, when the price of a product goes up, people do not demand as much as this product as they did before. The magnitude of how much the demand rises or drops due to price change is the elasticity. As for cost and benefits, it is understood that in economics, a company is to begin and proceed with their production as long as the costs do not outweigh the benefits. An analysis of the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs is an integral part of every company, and this concept can also be app...
Our team has been instructed to help advise on a business case involving a restaurant, The Mongolian Grill. It’s owner, John Butkus, is contemplating renovations, in hopes of adding capacity and increasing revenue. There are several scenarios that are available to him. One option is to add an extra food bar. The second option is to move the location of the cooking area. He can also implement both options, if he so chooses. Our team has done the appropriate financial calculations, as well as qualitative considerations.
According to the “Competition in the Bottled Water Industry in 2006 Case,” bottled water industry became the one of the world’s most attractive beverage categories, as more and more people began to focus on health and fitness. Consumers start realizing the need of proper hydration, and they began purchasing bottled water instead of drinking tap water, because they were worried about safety of tap water, which tasted like chemicals. Actually, tap water contained chemicals, such as chlorine and fluoride, which are harmful for human body; however, this problem was solved when the bottled water was brought to the market. Due to bottled water’s convenience, purity, and portability, and safety, bottled water industry began to rise rapidly. During
(ii) How much revenue will the business have to earn in order to break even in
By keeping in view the factors like demand & supply and elasticity of demand, supply
In conclusion, while the shift in demand curb can result from several sources, the quality of service, the tastes or even the number of buyer as presented here represent the main reason of the shifting price of an activity as the sell of ice-cream on campuses. As a businessman we should take in consideration those factors in order to be successful and trying to anticipate our rise or fall to stabilized our business. On another hand, keep in mind The most famous law in economics: “when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises.”
To determine the amount of losses that could be sustained if the business suffers a sales downturn.
Water is the most refreshing drink in the world, and probably the cheapest. People drink water because it's easy to achieve and cost barely anything. Lemon is one of the worse kinds of grapefruit people eat or doesn't eat at all. It taste extremely sour and even bitter if you eat the skin. But if you add these two ingredients together, you get one of the most prolific drinks ever. There are hundreds of ways of making lemonade. From whiskey lemonade to chocolate lemonade, there is a very wide range of making lemonade. But the simplest of all these kinds is the water base lemon drink, where water and lemon is the two crucial flavors in the drink. It's refreshing, healthy, and helps reduce Fibromyalgia, a certain disease. It is incredibly easy to make, that even a 5 year old can make. But let it be advised, however, that without the proper tools and directions, the great American beverage is nothing more than acid in water. People sometimes have the tendency of making the simplest mistake, such as adding sugar before water, and so forth. But with a...