North Country Auto Case

He argues that idle capacity is worse since it has no contribution to overheads whereas a lower price above variable costs would have some positive contribution to the fixed costs and therefore improve profitability for the division. He believes a price of $40 is insufficient to cover the total costs and that the systems division does not want to subsidize the overheads of outside buyers.

It’s about development of a formal exclusive franchise program, since 27 nonexclusive dealers had posted such a possibility in the last year. Each of these dealers represented a different market, and each of these markets was considered to have a high potential and be a candidate for the new advertising and promotion program.

Franchise is treated as a form of business that is more popular during the present context. Its popularity has to do with its proven track record of success,

However, as the sales reps have focused on current customers over the last five years the sales team has added only five new professional accounts. As well, in the areas outside DFW, 70% of sales are derived from do-it-yourself painters. As well, the company could consider increasing their present sales reps, eight, by an additional representative. At present, 70% of sales within DFW are derived from professional painters. However, the benefit of cutting the prices would not increase company sales to a point where they could maintain current contribution margin numbers. Given that the mass merchandisers are presently not pursuing this market source, the Jones-Blair Company would do well to draw upon their superior salesmen and initiate sales from this resource. Thus resulting only in approximately a 3% increase in customer purchases, from 15% to 18%. A posed increase of approximately 3% in the DFW area would increase the company"tms brand awareness by 5%, from approximately 25% to 30%. The company"tms sales representatives have a superior reputation with their dealers. In such an instance, increases in sales come with increases in variable costs related to the product.

If the CAPM is used to estimate the cost of equity capital, the expected excess market return is equal to the:

I hope that this meets the intent of this paper and that you learn something new about the management of an organization that I have the most interest in. I wanted to discuss how the lessons that we have covered during this class are used and demonstrated in a large worldwide company such as Ford Motor Co.

The main topic of the case was the problems caused by defective or damaged seats. TMM USA's seat problem was threefold. The first was the actual defects with the hooks and the damaged caused by cross threading by employees when installing the seats. This problem led to the second problem, which was the departure from the Toyota Production System (TPS) when dealing with the seat problem. Rather than fix the problem with the seat when it happened, they continued with the car's production and worried about the seat afterwards. And this led to the third problem, a build up of cars with seat problems in the off-line operation area.

Overall, Verboven (2009) emphasised three main issues. Firstly, double marginalisation occurring when both manufacturer and dealer apply separate profit incentivised mark-ups. Secondly, vertical externalities result in dealers having no incentive to provide sale and after-sale services, as the dealer ultimately provides the manufacturer with increased profits. Finally, competing dealerships may freeride on

An entrepreneur is someone who sets up their own business and take on financial risks in hope of making profit. There are many skills that an entrepreneur would have, some of these skills include focus, resilience, self-reliance, ability to learn, ability to sell and the ability to take on risks (Forbes, 2013, online). A franchise is an arrangement between the franchisor and franchisee where the franchisor will give the rights to the franchisee to use its trademark/trade-name and some business systems to produce and market a good or service. There are two types of franchises, one is product distribution is where the trademark and logo is provided although the business systems are not provided. Another type is a business format franchise is where the product and trademark is used alongside the franchisee conducting the business itself such as the marketing plan and operations manual (An Introduction to Franchising, 2001, pg.2, eBook). This essay will be discussing the advantages and disadvantages of an entrepreneur buying a business format franchise. Some points that will be discussed in this essay are the costs, the level of support and certain restrictions when buying a franchise.

By this approach, a maker charges, for every item unit sold, just the expansion to add up to cost coming about because of materials and direct work. Organizations regularly set costs near peripheral cost amid times of poor deals. On the off chance that, for instance, a thing has a minor cost of $1.00 and an ordinary offering cost is $2.00, the firm offering the thing may wish to bring down the cost to $1.10 if request has disappeared. The business would pick this approach in light of the fact that the incremental benefit of 10 pennies from the exchange is superior to no deal by any stretch of the

MMC was faced with requests from the COO for a new sales and inventory tracking system; Also a request from the CFO to invest in a new accounting system. The executives of the company wanted to understand how the implementation of these systems will help the bottom line of the company’s performance.

At present concept of franchising and management agreements appears to be common in business, because these agreements can benefit both sides. Franchising is one of the most frequently used and wide spread tool for the business development all over the world. This tool contributes to the rapid extension of the different networks of numerous companies, which without its development would have no such chance of success. The most successful franchises connected with the everyday human needs. According to Kathryn Shaw, franchise “is typically defined as a contractual arrangement between two legally independent firms, whereby the franchisee pays the franchiser for the right to sell the product or the right to use its trademarks in a

markup on the cost to obtain sales was not acceptable. On the other hand, other competitors are more

Enterprise is a privately held company and is also the nation’s biggest car rental service. They expanded their service in nearly 200 airport location within 10 years. With so many different consumer cultures and subcultures, the company Enterprise should make sure that they are providing quality vehicles and customer service to fulfill what consumers are looking for. Enterprise also provides electric and hybrid cars which caught eyes of many. “Enterprise offers customers the opportunity to rent a hybrid vehicle in more than 30 major markets” (BGS Lifetime Members, n.d.). The company’s fleet management program has certainly been beneficial and it also generated a lot of revenue. To provide superior customer value the company uses a measurement tool, the tool works by surveying random customers. In order to portray an image of the organizational success, the members of the company gets to drive newer vehicles.

| Customers are looking for more sales and coupons. High cost manufacturing prevents more discounts