Bus 640 Final Paper

1469 Words6 Pages
Managers within organizations are faced with the challenges daily of making excellent decisions. In everyday life we are challenged in making sound decision, decision that will last for a life time. Folk often wonder after making a decision if it was the right choice, will it affect the people around me, was this a good choice for my family, and will the decision affect them. In order to be an effective manager you have to possess the skill of outstanding decision making skills. In order for one to be successful within their personal life they may also need to possess an understanding of effective decision making. The decision- making process should be one that makes a positive change. Can the decision making process work
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The company must factor in that each of their customers has lifetime value, a greater value than a small gain made on first sales. With competition in their sector, more penetration pricing would be appropriate. The penetrating pricing strategy would only make sense to retain customers; the pricing strategy must realize lifetime value, (University of Phoenix, 2011).
Acer should avoid high price tactics, or selling off their market share. By doing this, they would retain only a small percentage of the market. Acer currently does not have the capacity to capture a niche market based on the uniqueness of their products (University of Phoenix, 2011). Their customers are not willing to pay a much higher price for this new product. In general, most businesses tend to skew a penetration price too high in an attempt to make more money. Based on Acer’s market, it would make sense to consider cost-plus pricing; they would charge their prices explicitly with reference to average costs plus a percentage profit mark-up. Predatory pricing and limit pricing would not be appropriate (McConnell-Brue, 2004).
Acer has a degree of control over its prices and a considerable amount of non-price competitions exists, which ultimately leads to price discrimination (University of Phoenix, 2011). As such, Acer should focus on attaining and retaining loyal customers. Their non-pricing strategy should be focused on the development of products that are unique
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