EBK STRATEGIC MANAGEMENT: CONCEPTS
4th Edition
ISBN: 8220106797259
Author: Rothaermel
Publisher: YUZU
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Question
Chapter 6, Problem 1ESI
Summary Introduction
To determine: Whether the business practice of Company P is ethical or not.
Introduction:
Strategic management refers to formulating and implementing the way to achieve the goals by considering available resource and the internal and external environment. It will be framed by the top management on behalf of an organization.
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Now suppose that over lunch the marketing vice president says to Jacob:
“We’re feeling a lot of heat from Chinese manufacturers who are offering very similar clubs to ours but at significantly lower prices. The legal department is working on a patent infringement case, but if we cant block these clubs from entering the market, I expect to see our sales flatten, and maybe even fall, over the rest of the year.”
What questions should Jacob ask? How would the answers to this affect the forecast? Does it still make sense to use quantitative forecasting under these circumstances? Why?
part 1
Explain why a product or service’s contribution (selling price minus variable cost) is an important element in developing a marketing strategy, giving examples to illustrate your answer. You can use any example including those covered in the module such as the Strategist Simulation or any of the other case studies examined.
part 2.
Imogen, the brand manager for ‘Skinsoft’, was reviewing price and promotion alternatives for her brand. She wanted to increase market share, but was unsure whether she should ask for an increase in advertising budget or consider a price promotion.
The current volume, price, and cost summary for ‘Skinsoft’ follows:
Skinsoft
Unit Price
£2.00
Unit Variable Cost
£1.40
Unit Volume
1,000,000
Imogen thought she might be able to negotiate with her boss and secure either a temporary 10 percent price reduction, or an investment of an incremental £150,000 in advertising.
a. What absolute increase in unit sales and revenue would be necessary to…
Regarding product life-cycle planning, good marketing managers know that
Multiple Choice
competing firms may introduce a product during any stage of the product life cycle.
every brand must go through the sales decline stage.
market introduction is usually profitable for the innovator.
any change in an existing product results in a new product life cycle.
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