Critical thinking exercise 6-3 Essay Example | Topics and Well Written Essays - 250 words

Critical thinking exercise 6-3 - Essay Example Start-up capital requirements and funding – The exact amount of capital to start the business and its sources should be identified. Services to be offered – Mike should specify what services he will offer in his shop and how much he will charge per service. Will there be specific cars only that he will work on? How many service bays will he have? Inventory – Mike should determine the inventory of car parts that he will keep, if any. He should also have a list of equipment and tools that he will need and where he plans to purchase these items. He must decide how he intends to purchase these items, whether it be cash or on credit. Target market – Mike should decide where to locate his shop, whether to rent or buy the place. Most important is for him to determine who is his target market, is it the middle or upper income class or will he work directly with a towing service? Marketing strategy – Mike should come up with a marketing strategy taking into account the 4Ps namely product, price, place and promotion. This marketing strategy should also consider his strengths, weaknesses and the opportunities and threats in the environment. Salaries – Having a list of personnel is not enough.

Answer Case Study Question Assignment Example | Topics and Well Written Essays - 500 words

Answer Case Study Question - Assignment Example It would also be appropriate for the firm to reserve enough funds for speculative purposes so as to grab any investment opportunities that may come up the countries where they start up their new branches. Funds to cover any calamities that may arise are also vital for the firm. The company should put into consideration the cost of labour in the countries where they plan to start branches. There are countries where the trade unions and government policies place very high minimum wages for labourers making the cost of labour high. There are also countries where the governments provide some amount of money for the unemployed. In such countries, people tend to only accept jobs that pay beyond certain amounts. These issues make cost of labour relatively high and the company should not invest in such countries. Availability of raw materials required by the firm for its production process is also an important factor. In countries where the raw materials are readily available, production will be much cheaper compared to countries where the raw materials have to be outsourced from elsewhere. In outsourcing raw materials, transportation costs and custom duty are incurred thereby increasing the cost of production. Where the resources are relatively scarce, the forces of demand and supply tend to raise their prices increasing the cost of production. The firm should also consider the economic status of the countries where they plan to start new branches. Countries facing recessions have low per capita income translating to lower purchasing power of its citizens. This may bring about low demand for goods and services leading to the company making losses due to poor sales of its products. In counties with stable economies, the chances of making profits are much higher hence more attractive for firms planning to go global. The company should also consider the level of technology in the various countries.