Long Term Investments For Low Calorie Frozen Food Company

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Long-term Investments for Low-Calorie Frozen food Company

Martha L. Johnson
Strayer University
Professor: Camille Castorina

Outline a plan that mangers in the low-calorie, frozen microwaveable food company could follow in anticipation of raisin prices when selecting pricing strategies for making their products response to a change in price less elastic. Provide a rational for your response.
As the manager of our low-calorie frozen food company our company would like to expand and will have to consider making some long-term capital budgeting decisions, because the ingredients that we use for our low-calorie frozen meals are increasing in price. Our company is trying to find ways we can raise our
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A Congressional Budget office report conclude that the increased use of ethanol accounts for 10-15% of the increase in food prices.(4) Changes in government subsidies for crops other than corn for ethanol impact food prices. Due to the continued increased in the food prices food manufacturers are feeling an overall cost increase, some things the government could do to help food manufactures and farmers are; make policy changes like ending ethanol subsides, eliminating or moderating other crop subsidies, moderating regulation on herbicide use, eliminating food tariffs, taxes, allowing more water use for agriculture, this could help lower food cost, and lowering oil prices could help food inflation(www.forbes.com). As the manger of our low-calorie frozen food company the overall price increase from our food manufacturer has impacted our company’s bottom-line and net profit, and we will have to raise prices in order to meet our financial goal, and meet the demand of our consumers. Our company need to implement ways to raise prices while keeping our customer base, the article, “How Companies can get smart about Raising Prices” suggest companies should follow these guidelines; (1) Companies should resist the urge to cut promotions or camouflage price increases, which often backfire. Instead, they should focus on minimizing the pain for shoppers who are budget shoppers, by emphasizing discounts and offering
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