Business and Management
Submitted By hereyouare
Competitive total net income $7,961,000
Lowest in Unit Production Cost $3.89
Competitive Stock Price $2.89
Expand Market Share
Hire industry leading fashion designers
R & D produce innovative products
Increasing labor cost
Price volatility in petroleum markets
ACTION PLAN FOR YEAR 7 AND BEYOND
In order to maintain a competitive net income, we need to increase our prices accordingly to maintain profit levels. To maintain the lowest UPC, we need to maintain funding to training and development and possibly increase to yield increasing productivity with the same amount of workers. To keep our stock prices competitive, we should keep releasing dividends and issuing stocks.
To deal with storage costs, we can make an attempt to better forecast our demand for our products, so we can ship only what we need in order to sell. If we can do this, then we can potentially lower our storage costs and transportation costs at the same time. As we ship fewer products, we have lower transportation costs.
We can use market segmentation to further target consumers that we are currently not marketing to, that are likely to purchase our product. We can hire industry leading fashion designers to help target the markets that we wish to expand to, in order to have a higher chance of success. We can use our R & D budget to have celebrities endorse our brand for the market segments we are trying to target.
If other companies also outsource their manufacturing plants, their products will also be competitively priced as their unit production cost will most likely decrease as well. This can affect our sales and net income if other companies outsource and decrease their prices even though they are…...