Business Proposal Eco 561 Essay

1755 WordsAug 12, 20128 Pages
Business Proposal Timothy Anderson ECO 561 Daniel Rowe July 16, 2012 Business Proposal A current issue with home health care and senior citizens is the need for medicine and food. In the current state of the economy with the rise and gas prices and the need of people to still commute, people have to figure out ways to get to and from pharmacies and grocery stores. In the economy two markets that will not fail in recession are discount retail food and medicine because people need both to survive (Viswanathan, 2009). According to AAA (2012), the national average for gas is currently $3.39 per gallon. The cost of gas coupled with the cost of prescriptions and groceries create a huge issue in elderly, disabled, and unfortunate…show more content…
People are less apt to purchase things unless they are a requirement. The pricing to non-pricing strategies will have about at 75/25% ratio. Considering the company will be a monopoly, and there is no immediate competition, non-pricing strategies are not as important. The company does not have to offer extensive warranties and long hours because it offers a service. The company will use promotional pricing, price cuts, and deals to customers to enhance the customer base. Advertising will be the major type of non-price strategy the company will use to promote visibility in the market. The company will use penetration pricing and bundle pricing in the beginning to ensure that customers understand the initial need for the service. Once the consumer understands the value, the company will raise price to attain the profit-maximizing goal. Planning and Operating Decisions A major decision the company must include in planning is budgeting and labor controls. Implementing the proper budgets for labor, costs, depreciation, and sales will help create success. Another strategy for progress in the expansion stage of the business cycle will be choosing the right type and number of employees. The management team will also have to crunch numbers to understand the appropriate number of vehicles and equipment to fulfill max profit numbers. The current state of the economy is allowing
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