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The Computron, Inc.
The Computron, Inc. is facing problems regarding pricing the bid for Computron 1000X, future functioning of Frankfurt plant, impact on production due to current market breakdown.
The main concern about Computron is that if the bid of 1000X should not higher than 20% of least bid to get the contract. It is strongly recommended to get the bid for functioning of new plant. Various issues regarding cutting down prices, bidding high or low and its pros-cons, current market situation and the competitors is discussed here.
Regarding the markup price, the top management is not allowing to go below 33.3%. Though some of the other options to be consider like on basis of past good relations with Konig explain them the benefits of high quality regardless the price, other options to be consider for future if bid is not gained etc. Such options are tested against the production, its cost, benefits to new projects.
Situation Analysis
Referring to current issue Computron is bidding $622,400 to sell its 1000x digital computer to Konig, which is 43% higher than least bid. A new manufacturing plant in Frankurt plant might have to sit idle for a couple of months if Computron couldn't win bid. Also Computron 1000X is purpose-built computer while Konig needs machine with less accuracy and flexibility.
Here are the some other issues:
1. Possible cut price to have a chance:
|Company |Price offered |
|Computron |$622,400 |
We have cumulated a profit of $206 million over this period, second of the industry. Our goal of escalating profit has advised us to increase automation level and for cutting costs, which enabled us to have the margins of all products above 30% in 2019 and an average margin of 53.4% in 2024. Additionally, we invested to keep our products updated to the market trend with an attention to customer buying criteria. Moreover, starting from recent years, we run our full capacity with second shifts whenever the market need has a possibility to accommodate our production. To achieve a greater profit, we based our pricing strategy on the market movements in general by decreasing our price by $0.50 every year except for our Low End product-Acre.
It has come to my attention that the functionality of my computer system is quite limited for the company’s day-to-day actions. It gives me great honor to propose, a new set of systems that will replace the dated systems that I currently use to complete my job. I am confident that these machines will allow me to think of new creative, ideas that will create new innovative marketing strategies for the company.
BBS Computing is located in Greece New York It is a Computer Sales, Service center that also does some Networking systems. Paul Saussa, Ron Bess and John Bonacci are both owners and employees of the business. It is a relatively small business that mainly does computer sales and repair with some occasional networking jobs. The actual business consists of a show room and a workshop. The showroom has different models of computers that customers can have built to buy. There are 4 different types depending on a customer’s budget for a computer. The low-end models consisting of a Pentium III processor and 256 Mb of RAM and the basic keyboard, mouse, monitor, printer, and speakers, and the high-end models consisting of a Pentium 4 processor or equivalent with 256 or more Mb of DDR RAM and premium speakers, keyboard, mouse, printer and monitor. Thus, meaning you get what you pay for. The display models allow you to show a customer some of the features of the different types of computer systems that are offered. Such things as operating systems such as Windows 98, Windows Me, Windows 2000, and Windows XP, and also programs like Nero for CD burners, All-in-Wonder TV tuner cards and applications such as Microsoft Office. This was my first opportunity to work with Windows XP.
Based on our company performance it is apparent that productivity at Echo Electronics declined significantly. I should have inform you sooner about the decline in sales and I am sorry for not getting to you on time. Meeting our customers ever-changing needs is the priority of Echo Electronics and I have taken immediate actions to improve our product quality and increase productivity. In order to retrieve our market place I decided to form a committee with the head of each department so we can avoid future mistakes. In addition, we will provide our employees with better training and detailed manuals on how to efficiently use new workstations. Also, to build better morale among our employees with will use motivational tools, such as, quarterly
In 500 B.C. the abacus was first used by the Babylonians as an aid to simple arithmetic. In 1623 Wihelm Schickard (1592 - 1635) invented a "Calculating Clock". This mechanical machine could add and subtract up to 6 digit numbers, and warned of an overflow by ringing a bell. J. H. Mueller comes up with the idea of the "difference engine", in 1786. This calculator could tabulate values of a polynomial. Muellers attempt to raise funds fails and the project was forgotten. Scheutz and his son Edward produced a 3rd order difference engine with a printer in 1843 and their government agreed to fund their next project.
$384 per unit or "mark up" of 47% vs $764. per unit or "mark up" of 94% (not really a mark up, fixed costs not included).
IBM is one of the most effective and popular computer in the industry. The reason the threat of entrant is low because the rate is enormously high for software services, products, and industrial R&D (Murdick, 2001). The threat of entrant in industry came out to be low for the above reasons that I explained. For example, IBM companies is very popular and expensive compared to other computer companies. Their prices are flexible and less than IBM prices. Thus, the way IBM is set up is very large firm and ranked the highest amongst all other computer industries. In general, the threat of entrant is low due to the co...
The computer industry has benefited from the explosion of home computer usage and has become one of the most competitive industries in the world. With technology growing at amazing paces, many of the computer companies have fallen behind and even out of the industry since the development of the computer. Only the strongest companies have been able to be profitable and efficient. Dell Inc. is one of the few corporations to be able to remain at the top of the market.
The development of the people these days had an affect in the development in the business world as well. People try to find the systems which can be use to help them in running the business for example to reduce the cost in running the business. Since 1950s the computer system had been use to cost.
began to take over the worlds market for tabulators, clocks, and electric type writers. By 1940 it was the us largest office firms that deals with machines. There sales had reach $50 million.
The percentage of mark-up is different almost in every transaction. If the price of raw materials is low, the company might set the highest at around 85% of mark-up and sometimes lower it to 80%-75% when the customers are negotiating a discount (only applied in bulk-buying). If the price of raw materials is high, the company set the mark-up at 45%-50%. On average, the company will set 65% mark-up.
department is in need of a complete new system in order to keep up the quality work
It is unsure once, if ever, costs can come back to equilibrium. The mispricing may become even a lot of pronounced within the meanwhile, doubtless forcing the businessman to shut the position.
As a technician, I get numerous calls everyday about how to overcome software problems, hardware problems, and everyday stupidity. The first two are usually a result of the third problem. That stupidity begins somewhere around the arrival of the initial thought to purchase the computer. Most people are fooled into believing that the need the fastest, most up to date and expensive technology to complete their task, despite the...
Thousands of years ago calculations were done using people’s fingers and pebbles that were found just lying around. Technology has transformed so much that today the most complicated computations are done within seconds. Human dependency on computers is increasing everyday. Just think how hard it would be to live a week without a computer. We owe the advancements of computers and other such electronic devices to the intelligence of men of the past.