Reference no: EM133276571
Case: Many considerations must be made before Al-Baik chicken can be exported to the United States. The price of chicken varies from supplier to supplier, but on average it costs roughly $1.50 per pound. Shipping and handling costs for chicken will vary depending on the weight of the shipment, but we expect to pay between $0.50 and $1.00 per pound. Advertising and promotion in the United States will cost more or less than $5,000, although that figure may vary greatly depending on the scope of the campaign. Finally, we might estimate that, on average, it costs around $50,000 to open and maintain a restaurant in the United States. According to our estimations, the total cost of shipping chicken from Al-Baik to the United States will be around $58,000. This pricing considers the cost of the chicken itself, the cost of shipping and handling, the cost of marketing and advertising, as well as the cost of opening and operating a restaurant in the United States.
There are a variety of techniques to cut down on the cost of shipping chicken from Al-Baik to the United States. One way to cut costs is to find a vendor that is willing to offer volume discounts. An alternative method of saving money is to bargain for a lower delivery rate with the company providing the service. The price of advertising Al-Baik chicken can be reduced by focusing on specific regions of the United States. Finally, one way to reduce the expense of starting and maintaining a restaurant in the United States is to locate the business in a location that charges less for rent or lease. The commercial viability of exporting Al-Baik chicken to the United States is substantial. It is estimated that it costs roughly $58,000 to ship chicken from Al-Baik to the United States. Finding a supplier willing to offer a discount on bulk orders, negotiating a lower rate with the shipping company, focusing on specific US markets more likely to be interested in Al-Baik chicken, and choosing a location with cheaper rent or lease are all ways to reduce the cost of exporting Al-Baik chicken to the US. Many considerations must be made before Al-Baik chicken can be exported to the United States. The price of chicken varies from supplier to supplier, but on average it costs roughly $1.50 per pound. Shipping and handling costs for chicken will vary depending on the weight of the shipment, but we expect to pay between $0.50 and $1.00 per pound. Advertising and promotion in the United States will cost more or less than $5,000, although that figure may vary greatly depending on the scope of the campaign. Finally, we might estimate that, on average, it costs around $50,000 to open and maintain a restaurant in the United States. According to our estimations, the total cost of shipping chicken from Al-Baik to the United States will be around $58,000. This pricing considers the cost of the chicken itself, the cost of shipping and handling, the cost of marketing and advertising, as well as the cost of opening and operating a restaurant in the United States.
There are a variety of techniques to cut down on the cost of shipping chicken from Al-Baik to the United States. One way to cut costs is to find a vendor that is willing to offer volume discounts. An alternative method of saving money is to bargain for a lower delivery rate with the company providing the service. The price of advertising Al-Baik chicken can be reduced by focusing on specific regions of the United States. Finally, one way to reduce the expense of starting and maintaining a restaurant in the United States is to locate the business in a location that charges less for rent or lease. The commercial viability of exporting Al-Baik chicken to the United States is substantial. It is estimated that it costs roughly $58,000 to ship chicken from Al-Baik to the United States. Finding a supplier willing to offer a discount on bulk orders, negotiating a lower rate with the shipping company, focusing on specific US markets more likely to be interested in Al-Baik chicken, and choosing a location with cheaper rent or lease are all ways to reduce the cost of exporting Al-Baik chicken to the US.
When setting prices for Al-Baik products sold in the United States, the competition is the single most important factor to consider. If Al-Baik wants to remain competitive in the American restaurant market, it must provide its customers with lower
When setting prices for Al-Baik products sold in the United States, the competition is the single most important factor to consider. If Al-Baik wants to remain competitive in the American restaurant market, it must provide its customers with lower
Question 1. Explain AL-BAIK cost analysis, determining, the cost of exporting the in the United States. This analysis must all real costs related to the business opportunity. Provide a costing sheet along with your detailed analysis.
Question 2. Must determine a suitable pricing strategy that will be competitive, cover costs, and provide a profit margin compared to what you could achieve with a similar product by operating in the domestic Saudi market. Must consider all relevant factors associated with United States.