Produce model to help james analyse

Assignment Help Management Theories

Reference no: EM133673944

Question: James Ku has just graduated with a general business degree from SUSS. Based on current market conditions, he is confident of getting a job that will pay him at least $3,500 a month. On the other hand, James has always been interested in running a business. He has noticed a strong demand for sports-related waist pouches. He managed to source for fairly attractive and functional pouches at just $4.00 each. He believes he can sell some 800 pouches online at $10 each. His fixed monthly business expenses work out to be $3,000.

(a) Produce model to help James analyse this waist pouch business. Use your model to advise whether he should undertake this business. State the reasons.

(b) James did some research and estimated that he could potentially sell 1,600 pouches at a price of $9. A friend told him that he could make more money by selling at an even lower price. Comment on whether this advice makes sense if James were to sell the pouches at just $7 each. Justify your answer quantitatively. (Hint: Consider using the Price Elasticity of Demand concept to analyse the question.)

Presentation Your models for Q2 must be neatly laid out and presented and also must apply appropriate colours, alignment, labels and formatting of numbers. Documentation is required.

Reference no: EM133673944

Questions Cloud

Personal history of the serial killer : Describe the case you selected to include the personal history of the serial killer, the facts of the case and how the killer was eventually identified

What are the strengths of the program policy or law : What are the strengths of this program, policy or law? What are the weakness of this program, policy or law? How can the program, policy or law be strengthened?

Explain the overall influence of government and legislation : Examine the role of management and HR and its influence on the labor movement. Explain the overall influence of government and legislation on today

Describe the firms strategy : Describe the firms strategy You need to collect information about the given firm to fill in the two boxes in the template below. The idea is to explain

Produce model to help james analyse : Produce model to help James analyse this waist pouch business. Use your model to advise whether he should undertake this business. State the reasons

What kind of entry would suit spartan the best : The principal players have stated that Spartan's ability to keep complete control to safeguard its patented technology is the main worry. What kind of entry

What areas of your job would like to see improved : What are some of the best parts of your job? What areas of your job would like to see improved? How has social policy impacted the clients you serve?

Identify a weakness pepsi has and the threat : Identify a weakness Pepsi has and the threat they perceive which has led to their desired acquisition of Soda Stream

Dealing with witnesses to the crime : Describe the challenges investigators faced in dealing with witnesses to the crime.

User Account

All Pages