Pricing Essay Example

Pricing Essay Company is a business division of a mid-sized company focused on manufacturing and selling a high quality consumer electronic device through high-end marketing channels such as specialty shops and exclusive department stores. These specialty outlets advise and educate customers about the desirable features of different electronic devices. Elektra charges on average 500 per unit to its distributors, who mark it up to 899 when selling to retail customers. After many years of high sales, Elektra sales in the last year had slumped to 150,000 units per year using only 75 of its manufacturing capacity. The decline in demand was because of fast changing technologies and consumer habits, and the recent introduction of a new generation of the electronic device had not increased sales appreciably. Consequently, Elektra senior management believes it is unlikely that the demand for its products will increase significantly in the next three years until conditions improve substantially and Elektra and its high-end competitors introduce the next generation technology. Nonetheless, they remained confident about the long term prospects of their product. Elektra has recently received a proposal from Megawatt Stores, Inc. A leading national chain of discount retail stores. Megawatt wants to buy Elektra product of the same quality as that sold at present through specialty retailers. Megawatt has offered to purchase 50,000 units annually for a three-year period at 374 per unit. It cannot pay a higher price because it plans to retail the product at only 549. While costs are not expected to increase, an inflation clause will allow Elektra to pass on exogenous cost increases. We will write a custom essay sample on Pricing specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Pricing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Pricing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer After extensive negotiations, Megawatt has made a take-it-or-leave-it offer and threatened to explore other strategic partners n case Elektra does not accept its offer. Although Megastars offer is 25 below Elektra normal price, it may be attractive for Elektra to be an early mover in the low- end market because Elektra has considerable surplus capacity, and the Megawatt contract may allow it to accumulate experience in what may emerge as the dominant segment of the market. Elektra variable product costs for sales through its present high-end distribution channel are estimated to be 300, including direct materials 150, direct labor 60, variable manufacturing overhead 70, and sales commission 20 at 4 of sales price. Annual fixed overhead costs are 17,000,000, and are not expected to increase with the increased production required if the Megawatt offer is accepted. By scaling down to a capacity of 150,000 units from the present 200,000, however, Elektra would be able to save about of the annual fixed costs. Variable costs for the Megawatt order are expected to be similar. Direct material costs, however, will increase by 10 because of special casing and packaging with embossing of Megastars private label logo instead of the Elektra brand name. Also, variable costs for the Megawatt order will exclude the 4 commission normally paid to the ales staff because no salesperson is involved in sales to Megawatt. Some Elektra executives are concerned that when customers comparison shop they will find the same quality device as Elektra own brand name product sold through specialty retailers. If the devices are available at a much lower price at Megawatt Stores, many price conscious customers may buy the devices at Megawatt instead of the specialty retailers. Elektra senior managers are very confident that no more than 6 of Elektra present sales will be lost because of the comparison shopping if Megastars proposal is accepted. Comparison shoppers are price conscious customers who shop around to find the cheapest product with the requisite level of quality. Most of Elektra customers are quality enthusiasts who visit only the specialty shops to evaluate the features of different products, rather than the price, before making their purchase decision. Elektra top management is more concerned about these quality enthusiasts but does not believe any of them would shop at Megawatt. If 6 of Elektra high-end channel sales are cannibalized, total sales will be 191,000 units including 50,000 units sold through Megawatt, but no reduction will be possible in axed costs. Another group of Elektra executives is concerned about selling at a discounted price the same quality products as the products sold at present through specialty retailers, and the impact that such a move will have on the special relationship that has been cultivated with the high-end retailers. These executives believe that sales may decrease if the specialty retailers do not push the Elektra brand product as much as its competitors products. Megawatt has insisted on nothing but the best quality product that Elektra sells at present through the peculiarly retailers, and will withdraw its offer otherwise. New technology is developed by Elektra(and also its competitors) on a three-year cycle to increase the value of the product to high-end customers. An alternative considered by Elektra is to invest more on RD immediately and bring the new technology to the market within a year. The fixed and variable cost structure is not expected to change significantly for the new Reproduced with permission from the faculty product that incorporates the new technology. Some Elektra executives are concerned that accelerating the RD may exult in more defects creeping in the product and some complementary products provided by other suppliers not being ready. This increased the risk of customers being dissatisfied with the new generation and hurts Elektra reputation. However, because the new product will likely be substantially more useful to the high-end customers, Elektra could replace the existing product with the new product in the specialty retail channel. By accelerating the new technology, Elektra is not likely to gain significant market share in the specialty channel as competitors will try and attach Elektra technology as soon as possible by introducing their new models with the new technology early. Required What will be the annual profit if the Megawatt offer is rejected What will be the increase or decrease in its annual profit if it accepts Megastars offer Should Elektra accept Megastars proposal What strategic factors should be considered in evaluating the Megawatt offer Should Elektra agree to having its product branded as a Megawatt product and incur the additional 10 increase in direct materials cost How attractive is the potential opportunity to accumulate experience in the low-end market through the proposed strategic alliance with Megawatt Should Elektra accelerate the development of the new technology and bring it to market within a year Is there a difference between the sales lost due to centralization of price-sensitive customers and the sales lost because specially retailers may no longer push Elektra products if Elektra accepts the Megawatt offer Reproduced with permission from the faculty September 2012. Professor Rajah D. Banker prepared this case to provide a b asis for class discussion.

Finding Topics For A Research Paper On Earthquakes

Finding Topics For A Research Paper On EarthquakesThe topic for a research paper on earthquakes is a very important and effective one. You may want to study the whole thing before you get to the subject of the paper. This can help you to come up with a very good topic. The topic for a research paper on earthquakes will cover how they affect us and how we can prepare for them.Earthquake is an inconvenience for people. They cause damage and often lead to many casualties. There is a lot of destruction caused by the earthquakes in several countries. People who live in those countries may be a bit reluctant to move their homes. That can cause serious problems for people and companies that need to move their offices to new locations.When it comes to preparation, the first thing people should do is to get information about where they need to go in case an earthquake happens. It is important to be prepared in case of any natural disaster. That way, you won't have to worry about missing your flight or your hotel. The best way to get a good topic for a research paper on earthquakes is to get an expert to give you some tips and advice on the topic.The experts will also be able to tell you what the common topics are for a research paper on earthquakes. They will also be able to help you come up with a very good topic for a research paper on earthquakes. The topics for a research paper on earthquakes are essential because it can help you come up with a very good research paper. This will also help you prepare for the future as well.Once you have decided what subject you want to write on, you will have to figure out a method of getting it ready. You should know that it can take a long time to complete the topic. This is because there are so many things to think about. You will also have to research the subject and study it. You will also have to read the information you will use to write your paper.You will have to learn how to write your topic in a proper format. The format will differ from subject to subject. For example, if you are studying the topic of the research paper on earthquakes, you will need to have an earthquake in the subject of the research paper. Other methods that you will need to follow include using ellipses, using a topic heading, using standard layout, using tables, using subtopics, using quotation marks, using figures, using black ink, and using bold fonts.If you have been doing your homework, you will know that the topic for a research paper on earthquakes will focus on the big ones. They are Los Angeles, Haiti, Chile, Japan, and even Los Angeles is under the sea. That means you will have to include them all in your topic.When you are trying to find topics for a research paper on earthquakes, you will find that this subject is very detailed. It can even be very confusing. You will also have to make sure that you do not skip any information that you might need for your paper. There is a lot of information out there so you need to be careful.

What Was Your College Essay About?

What Was Your College Essay About?The goal of every college essay is to tell the student something they have not been able to find out on their own. Every single student, no matter how smart they are, finds it hard to do so.Most college essays that you write are not the smartest thoughts you have ever had. Your writing will show your personality as well as give an interesting story of who you are and where you went to school.What was your college essays about? This question is the main focus of this article. We are going to look at some examples to see how to put a question into your topic.What was your college essays about the perfect beach? You will find that there are many reasons why people decide to go on the beach. One reason that many people choose the beach is because they have heard good things about it.On your college essays, do not talk about all the good things you have done in life. You may talk about something you may have learned in class but never really learned. Do n ot talk about this when talking about your college essay.What was your college essays about tennis? Tennis is one of the most popular sports around the world. Some of the best athletes in the world like Serena Williams have tried their hand at tennis.What was your college essays about a trip to the Grand Canyon? Many people love the Grand Canyon. However, if you go there, you will want to give a little description of your trip to the Grand Canyon.The answers to the questions 'What was your college essays about?' and 'What was your college essay about?' help your readers understand your personality.

Research Paper Topics on the United Nations - How to Work Out Your Research

Research Paper Topics on the United Nations - How to Work Out Your ResearchFor a research paper to be very well researched, it must cover the research topic on the United Nations. However, for an organization that has so many members and so many different perspectives, researching this topic requires understanding how each of these members defines the term.The United Nations does not attempt to determine which nations are the best or even which are the most likely to develop nuclear weapons or start a war, which is why it is important to recognize each country's own interests before one goes into research on the topic. This is especially true when looking at the Middle East. Many who try to work out their research on this topic often overlook these complexities and focus on the most well-known nations.The Middle East may have the most developed nations in the world. However, as stated above, the Middle East also has many nations that are not as well known as the Middle East. Therefor e, it is important to understand how these lesser known nations are viewed by these leaders before looking at the United Nations. Therefore, one of the key issues that is covered by the United Nations is the relationship of these nations with other nations.In the United Nations, this relationship is critical. Any nation that has relationships with other nations such as the European Union, for example, will benefit from the influence of the United Nations. In some cases, it is this influence that will lead to peace rather than war and that is why it is necessary to study the relationships between these nations.The Middle East nations do not have well-known relationships with other nations. However, they still need to be included in any research on the United Nations. The Middle East is not without its problems. The Middle East is the area of the world where there are many arms races, which of course often leads to more tensions.As stated above, the Middle East does not have much in t he way of a developed economy. Because of this, some believe that it will be difficult for the Middle East to gain respect in the eyes of other nations. The Middle East has many problems that lead many to believe that it is not able to properly make its case in the United Nations.In order to ensure that the Middle East will gain respect, the United Nations must include it. This means that the United Nations must add the Middle East to its mandate of members and that the United Nations must include in its agenda. When one includes Middle East into their research paper, it should be mentioned that the Middle East also needs to join in. This is because the Middle East will be part of any discussions in the United Nations about developing or non-developing nations and whether they should be included in any future plans.Therefore, in order to achieve peace in the Middle East, the United Nations must recognize the nation and the conditions that are currently present in the Middle East. If this is done, the United Nations will be successful in bringing the Middle East into the mainstream of the other nations.

Tips For Writing a Memoir Essay Example

Tips For Writing a Memoir Essay ExampleWriting a memoir essay example for the reading audience is one of the most important aspects of memoir writing. There are certain steps that need to be taken before you begin to write your memoir and some of them are mentioned below.If you want to write a memoir writing sample, it is not as difficult as many people think. I have given a few pointers that can be used as a guide in creating a great memoir writing example.You can choose to first write an entire article about the topic of your memoir. The better article you have written, the better your memoir will be. This will make your reader eager to read your memoir. You can also consider using a sub-headline as a resource which can lead your reader to the right section of your article.Opt in emails can be used as references. These emails can be sent to people who you do not know. With the opt in email addresses, you can find out who will be interested in reading your memoir.There are several b ooks available that can be used to reference in your memoir. Make sure that you purchase them when they are available. Book references are really helpful.Another thing that you can use to research your topic is to post on forums. Forums are communities where people can discuss subjects. However, you will need to do this after you have finished your memoir. This is because once you start, you will not have the option of stopping anytime you wish.In writing a memoir, you may have to refer to other people's works as well. However, make sure that you do not become a plagiarist.