Eco 365 Week 2 Dq

From a personal experience of working in a restaurant located in a touristy town, I found these fluctuations in business to be a reality. I worked in a restaurant in Williamstown, Massachusetts, which gets very busy in the summer due to a renowned theater festival. During the summer, the restaurant was completely

As for cost structures for this industry, the fixed costs are going to consist of machinery and equipment in order to produce the automobiles. These fixed costs also serve as a barrier of entry into the industry; small firms will not be able to afford the fixed costs. For the variable costs, labor, materials, and advertising are going to be the main costs (Investopedia, 2009). These costs also change according to the output produced; whether the companies cut back on production or increase in production. These costs don’t serve so much as a barrier of entry into the industry, but in order to compete in this industry, an entering firm must come up with them on an extremely large scale.

Marcel is not making his marginal costs/ His saving are depleting. The restaurant is faced the prospect of closing.

Case Court Reporting is a private court reporting company, which provides certified court reporters to law firms to take testimony in depositions and arbitration hearings, as well as providing “closed captioning” to local television stations for their community-based programming. Case Court Reporting (CCR) has 37 employees.

The restaurant industry is highly competitive, and that competition could lower their revenues, margins and market share. The business is subject to macroeconomic and other factors that may negatively impact the results of operations. Restaurant development plans under development agreements may not be implemented effectively. IHOP Corp. may have difficulty expanding in new markets outside the United States.

Jim Barnes enterprises face problems like budgeting, staffing, and management (www.smllbusiness.com). The problems with budgeting are the costs for food and payroll. When food costs are up the labor for workers goes down. When this happens the restaurants can sometimes be

Although the restaurant industry is perceived to have high risk of failure, the risk of a restaurant failing is not too different from other small businesses. Parsa et al. quantified the risk of failure at 26% in the first year and 57% by year 3. He also described several factors that can influence the risk of failure. Those include physical location, firm size, speed of growth, differentiation from other restaurants in the market, adapting to external trends, and management experience. In terms of location and differentiation, Paul’s bar will be located in a new development designed to attract affluent customers and with very few competitors. Paul’s small firm size increases risk because of barriers to attract partners (i.e. suppliers and bankers are prejudiced against smaller firms) and growth that may be too rapid to manage. On the other hand, Robert already has experience in the restaurant business and should know how to run the bar and subsequent restaurant. Their choice of a piano bar may be in response to local trends that favor success.

Lastly, the company suggest to expand their current inventory through increasing production and capacity. With the increase in production rate the company can gain more consumers as a whole through supply and demand. Doing this would give the company an opportunity for more exposure and perhaps better brand recognition.

Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.

Around the world there are many establishments with a wide variety of owners and backgrounds. Unfortunately, many of the smaller non-corporate owned businesses struggle to stay open and turn profit. Some businesses are unable to come up with creative of innovative ways to create new revenue. Without the needed money most close eventually. This isn’t the case for a small town diner that goes by the name of Munchy’s. The owner was able to come up with a money making idea, by actually limiting their customer base. He banned teens at his restaurant Munchy’s from noon to three p.m. on the weekdays making a very wise business move. By banning the teens the adults have motivation to come and spend more money than the teens, while leaving plenty of

owners have found that demand for their product has outstripped their ability to supply it. They

Despit the owners of the resturants wanting to make more profit well so do there servers. Some things they could do would be slighlty raise the price of all foods. Shorten every hours to eight hour shifts, and raise the income to regular non tipped minimum wage an let them recive tips. In the end of the year make it were they dont have to pay taxes on tips.

Simply, company started to sell everything that is commercially profitable, which is big mistake in the long term.

price for raw material is still expensive. In the future, it may need to find a cheaper material to

Firstly, it is strategically beneficial for the company to continue to produce products A, C, and D. However, you should discontinue production of product B, as it is unprofitable and is losing the company money. Product B has been losing the company $2,307 per reel. If the company deems it is essential to keep producing product B in order to retain their customer base, we recommend changing the production schedule. For example, during times of lower demand, you can produce products such as B that do not make as much money, but you will still retain your customers’ business and satisfy their needs. During times of higher demand, by discontinuing the production of product B, the company will be able to produce the more profitable products such as A, C, and D.