You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management and will be undergoing changes in its product lines and operating structure. As an economist, your responsibilities include examining the market factors that affect success or failure of a product, including the supply and demand for the product, market conditions, and the behavior of competitors with similar products.
The new management has identified several possible investments for the coming year. It has asked you and your team to evaluate the possibilities and make a recommendation to the board of directors. Jorge has identified an opportunity and assigned you the task of making a recommendation on the investment.
Use any product that a company similar to Vanda-Laye might produce.
Tasks:
Summarize the course project including information you have learned each week.
Analyze marketing factors that can contribute the success or failure of a product for a company such as Vanda-Laye.
Evaluate the role capital budgeting can play in the recommendation of a new product.
Explain how government intervention can impact a new product such as the one you chose.
Justify if the product should be recommended. What were the determining factors in this decision?
Tag: Economist for the Vanda-Laye Corporation
Economist for the Vanda-Laye Corporation
You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management and will be undergoing changes in its product lines and operating structure. As an economist, your responsibilities include examining the market factors that affect success or failure of a product, including the supply and demand for the product, market conditions, and the behavior of competitors with similar products.
The new owners are evaluating the operating structure, and you have two possible alternatives. One alternative requires a high level of investment in fixed costs compared to the other alternative. Jorge, your supervisor, has assigned you the task of evaluating the two alternatives.
Assume that the company has no debt. Regardless of the alternative selected, market conditions will require the selling price of the product to be $3.45 per unit. The details for each alternative are given in the table.
(table is attached)
Tasks:
Jorge has asked you to provide detailed responses to the following questions:
Analyze how the CVP analysis helps management in the planning stage of a new business.
What is the break-even quantity for each of the investment alternatives?
Analyze the breakeven differences between the two alternatives. What does the breakeven quantity tell you?
Which alternative would you recommend to the company? Explain the pros and cons of each alternative and the reasons for your selection.
Economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies
You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management and will be undergoing changes in its product lines and operating structure. As an economist, your responsibilities include examining the market factors that affect success or failure of a product, including the supply and demand for the product, market conditions, and the behavior of competitors with similar products.
Your supervisor, Jorge, has assigned you the task of evaluating a new product. The new product, oven mittens, has several competitors in the marketplace, but your company will be using a new patented material that provides protection from heat and maintains a great deal of flexibility.
Tasks:
Analyze the goals of the company. What is an operating structure and how can changes affect a company?
Evaluate what information is needed to assess the market factors that will make this product a success of failure.
Explain the basic supply and demand aspects that will make the product a success or failure.
Submission Details: