Understanding Pricing Strategies in Business
Pricing Strategies in Business
Wholesale vs. Retail Pricing
Wholesale price applies to bulk purchases, typically by wholesalers. Retail price is the price consumers pay in retail settings.
Types of Prices
- Authorized Price: Requires approval from relevant authorities for increases.
- Gross Price: The price before any discounts are applied.
- Bundle Price: Offered when two or more products or services are sold together.
- Production Cost: Represents all costs associated with bringing a product or service to market.
International Finance: A Deep Dive into Multinational Enterprises and Foreign Exchange
Multinational Enterprises (MNEs)
MNEs are companies that operate in multiple countries, conducting business through branches, foreign subsidiaries, or joint ventures with local firms.
Foreign Currency Exchange Rate
The foreign currency exchange rate is the price of one country’s currency expressed in terms of another country’s currency. For example, the US Dollar ($ or USD) / European euro (€ or EUR) exchange rate might be stated as “1.3654 dollars per euro” or as $1.3654/€. Most exchange rates
Read MoreProject Cycle and Market Analysis
Project Cycle
1 – Pre-Investment
* Identification of the idea * Preliminary studies * Prefeasibility study * Feasibility study * Market and organizational analysis
2 – Investment
* Purchase of machinery and equipment * Construction of the project
3 – Commissioning
* Operating and profit-making
Pre-Investment Stage
- Project description indicating how to obtain the objective
- Description of material, human, and physical resources
- Estimation of the amount of investment required
Preliminary Study
* First review of
Read MoreEconomic Concepts and International Finance
Foreign Direct Investment and Multinational Corporations
Foreign direct investment (FDI) involves long-term investments by private multinational corporations (MNCs) in countries overseas. There are two main types of FDI:
- Greenfield investment: MNCs build new plants or expand existing facilities in foreign countries.
- Mergers and acquisitions: MNCs merge with or acquire existing firms in foreign countries.
MNCs are attracted to developing countries because they may offer:
- Abundant natural resources
- Large
Public Relations: A Comprehensive Guide
What are “Public Relations”?
PUBLICOS:
CUSTOMERS: CURRENT, POTENTIAL, SHADOW CONSTITUENCIES, SECONDARY CUSTOMERS
PRODUCERS: FINANCERS, PERSONNEL, SUPPLIERS
LIMITERS: COMPETITORS, OPPONENTS, HOSTILE FORCES
ENABLERS: OPINION LEADERS, ALLIES, REGULATORS, MEDIA
ANALYZING THE SITUATION
SITUATION: SET OF CIRCUMSTANCES FACING AN ORGANIZATION. A PROBLEM A QUESTIONS NEEDED TO BE ADDRESSED.
ISSUE: SITUATION THAT PRESENT MATTERS OF CONCERN TO ORGANIZATION. THE BALANCE BETWEEN OBSTACLES/OPPORTUNITIES.
Ej: johnson &
Read MoreProduction Function: Optimizing Production Processes for Efficiency and Effectiveness
Production Function: Transforming Inputs into Outputs
A production function is a mathematical representation of the relationship between inputs (resources) and outputs (goods or services) within a company. It describes how different combinations of inputs can be used to produce a given level of output.
Limiters or Determinants of Production
- Productive Capacity: The maximum amount of output that can be produced with the available resources.
- Demand for the Product: The level of market demand determines