Business decisions Essay Example | Topics and Well Written Essays - 500 words

Business decisions - Essay Example The company is also finding it difficult to undertake product differentiation. Moreover with the present global financial crisis, the company is also facing the problem of lower spending by the customer. Finally due to the housing crisis, rising unemployment rate (9.9%) and the steady depreciation of the dollar has led to a huge current account deficit for the country. Larsen must conduct proper research to understand the customer. The company should continue with its marketing research programs. This would give knowledge of the customer’s needs and wants during these recessionary periods. The company must continue with its advertising budget. This strategy follows from a popular theory that states that companies who advertise during recession are the leaders when the economy bounces back. It should prepare ads which tend to focus on family values rather than the extreme fun and humor ads. In order to cut costs the company can resort to reduce the duration of the ads rather than scrapping them as a whole. The company can also put emphasis on direct marketing as a promotional tool. Larson must also reforecast its demand estimates. These estimates should be made on the basis of actual market conditions. The demand estimates must be made on the basis of scenario planning where different scenarios would be considered while forecasting the demand estimates. Larson must also change its pricing strategies. Instead of a cost plus pricing strategy it can adopt a marginal cost pricing approach in which the company would charge only the additional amount apart from the total cost coming from labor and materials. The advantage of this strategy is that the company can set up prices of the products near the marginal costs during the periods of poor sale. . (Weinburg College of Arts and Sciences, n.d.) Finally the firm must look towards expanding into newer markets like Asia which offer tremendous opportunities. Lastly it can also identify its business

Work-Related Project Analysis, Part I Essay Example | Topics and Well Written Essays - 1500 words

Work-Related Project Analysis, Part I - Essay Example This systems analysis includes a research into the supply chain system instated by Audi. The research methodology is primarily based upon a secondary research or more specifically a literature review of magazine article, press release, case study, and a textbook. The research design follows an empirical analysis based on qualitative sources that aims to analyze the working of its supply chain as the chosen system or project. Information is gathered from these sources as mentioned which will form the theoretical base in analyzing, assessing, and evaluating the efficiency, effectiveness, and performance of its supply chain system in delivery value to its consumers. The supply chain operations are important to any company for delivering its outputs and meeting its goals. Hence, this work related project analysis is to follow a literature review of secondary sources so as to gather the relevant information and knowledge regarding the system in place. The research design specifically invo lves use of germane sources so as to allow a rigorous analysis. Audi has now merged with the German based auto company Volkswagen AG after the company acquired 99 percent of its shares (Diaz, 2006). Having its head offices in Germany, Audi is a highly renowned automobile manufacturing company that produces high quality cars. The company’s supply chain system is a very important component of the supply chain which helps in delivering customer satisfaction and value to consumers. The production of its cars and the assembling of the various car components require seamless functioning of the supply chain. Production is aided by inbound and outbound logistics that helps to connect the transported raw materials with the production line. For many other car manufacturing firms, the supply chain department serves an important line function. Hence, I have chosen to base this research on the supply