MANAGERIAL ECON.+BUS.STRATEGY (LOOSE)
MANAGERIAL ECON.+BUS.STRATEGY (LOOSE)
9th Edition
ISBN: 9781259896422
Author: Baye
Publisher: MCG
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Chapter 1, Problem 19PAA
To determine

To explain:

Whether new advertisement campaign is to be launched or not.

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You are the manager in charge of global operations at BankGlobal – a large commercial bank that operates in a number of countries around the world. You must decide whether or not to launch a new advertising campaign in the U.S. market. Your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on U.S. operations. In addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the U.S. advertising campaign were launched. Your goal is to maximize BankGlobal’s value.     Pre-Advertising Campaign Post-Advertising Campaign Total Revenues $18,610,900 $31,980,200 Variable Cost     TV Airtime 5,750,350 8,610,400 Ad development labor 1,960,580 3,102,450 Total variable costs 7,710,930 11,712,850 Direct Fixed Cost     Depreciation – computer equipment 1,500,000 1,500,000 Total direct fixed cost 1,500,000 1,500,000…
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COVID-19 brought global economic and financial ramifications that were felt through global supply chains, from raw materials to finished products. Some term it as a black swan event that may finally force many companies, and entire industries, to rethink and transform their global supply chain model. If you are the CEO of a U.S. based company which is heavily dependent on foreign locations for sourcing and manufacturing, how would you make short-term and long-term plans to modify your supply chain model? List and discuss the main considerations or factors that will influence your decision.
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