Todd used to run a newsstand, but he's out of the business now. Todd started by selling localnewspapers on a street corner. In the winter he got cold, so he paid the city a fee of $500 for theright to build a 4' by 8' enclosed wooden newsstand on a busy corner. Soon he decided to sellmagazines, chewing gum, and candy bars too. He began to stock foreignlanguage newspapersand paperback romance novels. Then he added hot pretzels and candy apples. When he tried tosupply cut flowers, he had gone too far. The costs of his entire inventory could not be coveredby his sales. He couldn't pay his bills and went out of business. Answer the following questionsabout Todd's experiences. 21. What should Todd have done before he offered each new product22. What could Todd have done to prevent his business from failing?

The product strategy accomplishes the business goals. To sustain a business, one has to build an…

Answered: Todd used to run a newsstand, but he's…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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CASESTUD: Krisha Water CompanyMary Krishna established her company, KrishnaWater, Inc., to market a product designed to purify drinking water. Environmental Control produces the product, which yet to branded inc., a corporation that focuses primarily on water purification and filtering products for industrial markets. Krishna Water is a small but growing business. Mary started the business with only $20,000, which came from his savings and loans from several relatives. Mary manages the company with a secretary and six full-time salespeople. Besides, he employs two college students part-time; they make telephone calls to prospect for customers, offer administrative support and set up appointments for a salesperson to demonstrate the unit in the customer’s home. By holding spending to a minimum, Mary has kept the firm’s monthly operating budget at only $4,500. Most of that goes for rent, his secretary’s salary, and other necessities like computer supplies and telephone bills.The…
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