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A level 300 student in the University of Ghana has approached you to assist her with her project work. She is undertaking a study of COM as a business case and she would need guidance on specific areas in the preparation of a business plan.
Required:
Prepare an extract of a business plan on the following based on the company, COM:
a) Competitive Analysis (5 marks)
b) Market Analysis (5 marks)
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Market segmentation is important for strategic management. Which of the following is NOT a basis for market segmentation?
A. Customer
B. Products function
C. Geographical area
D. Demographic factors
E. Competitive activities
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Oliso Ltd manufactures and sells an executive game for two distinct markets in which it currently has a monopoly. The fixed costs of production per month are GH¢20,000, and variable costs per unit produced, and sold, are GH¢40. The monthly sales can be thought of as X, where X = X1 + X2, with X1 and X2 denoting monthly sales in their respective markets. Detailed market research has revealed the demand functions in the markets are to be as follows, with prices shown as P1 and P2:
The price is currently GH¢50 per game in both markets, and the Management Accountant believes there should be price discrimination.
Required:
a) Explain the term ‘price-discrimination’ and explain THREE (3) conditions that are necessary for the successful operation of this pricing strategy. (5 marks)
b) Calculate the price to charge in each market, and the quantity to produce (and sell) each month, to maximise profit. (4 marks)
c) Calculate the Total Monthly Contribution for each market at the price and quantities calculated in part (a) and the maximum monthly profit in total. (3 marks)
d) Write brief notes to the Management Accountant to explain how this pricing strategy would change if new competitors enter the market and suggest other pricing strategies which the business may have to consider, as well as pricing strategies that a new competitor may use. (3 marks)
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Bisclothing manufactures clothing for the global market and has decided to segment the market to be able to serve its customers well. Your task is to:
i) State THREE bases for segmenting the global clothing market of Bisclothing. (6 marks)
ii) State FOUR conditions that Bisclothing can use to ensure a successful segmentation process for the company. (8 marks)
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Markets are not homogeneous. A company cannot connect with all customers in large, broad, or diverse markets. Consumers vary on many dimensions and often can be grouped according to one or more characteristics. A company needs to identify which market segment it can serve effectively.
Required: Explain:
i) Market segment. (4 marks)
ii) Geographic segmentation. (4 marks)
iii) Demographic segmentation. (4 marks)
iv) Psychographic segmentation. (4 marks)
v) Behavioral segmentation. (4 marks)
(Total: 20 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
A level 300 student in the University of Ghana has approached you to assist her with her project work. She is undertaking a study of COM as a business case and she would need guidance on specific areas in the preparation of a business plan.
Required:
Prepare an extract of a business plan on the following based on the company, COM:
a) Competitive Analysis (5 marks)
b) Market Analysis (5 marks)
Find Related Questions by Tags, levels, etc.
Market segmentation is important for strategic management. Which of the following is NOT a basis for market segmentation?
A. Customer
B. Products function
C. Geographical area
D. Demographic factors
E. Competitive activities
Find Related Questions by Tags, levels, etc.
Oliso Ltd manufactures and sells an executive game for two distinct markets in which it currently has a monopoly. The fixed costs of production per month are GH¢20,000, and variable costs per unit produced, and sold, are GH¢40. The monthly sales can be thought of as X, where X = X1 + X2, with X1 and X2 denoting monthly sales in their respective markets. Detailed market research has revealed the demand functions in the markets are to be as follows, with prices shown as P1 and P2:
The price is currently GH¢50 per game in both markets, and the Management Accountant believes there should be price discrimination.
Required:
a) Explain the term ‘price-discrimination’ and explain THREE (3) conditions that are necessary for the successful operation of this pricing strategy. (5 marks)
b) Calculate the price to charge in each market, and the quantity to produce (and sell) each month, to maximise profit. (4 marks)
c) Calculate the Total Monthly Contribution for each market at the price and quantities calculated in part (a) and the maximum monthly profit in total. (3 marks)
d) Write brief notes to the Management Accountant to explain how this pricing strategy would change if new competitors enter the market and suggest other pricing strategies which the business may have to consider, as well as pricing strategies that a new competitor may use. (3 marks)
Find Related Questions by Tags, levels, etc.
Bisclothing manufactures clothing for the global market and has decided to segment the market to be able to serve its customers well. Your task is to:
i) State THREE bases for segmenting the global clothing market of Bisclothing. (6 marks)
ii) State FOUR conditions that Bisclothing can use to ensure a successful segmentation process for the company. (8 marks)
Find Related Questions by Tags, levels, etc.
Markets are not homogeneous. A company cannot connect with all customers in large, broad, or diverse markets. Consumers vary on many dimensions and often can be grouped according to one or more characteristics. A company needs to identify which market segment it can serve effectively.
Required: Explain:
i) Market segment. (4 marks)
ii) Geographic segmentation. (4 marks)
iii) Demographic segmentation. (4 marks)
iv) Psychographic segmentation. (4 marks)
v) Behavioral segmentation. (4 marks)
(Total: 20 marks)
Find Related Questions by Tags, levels, etc.
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