Answer:
a. The three generic strategies
b. Value chain analysis
e. SWOT Analysis
g. The Five Forces Model
Explanation:
Managers commonly utilize four analytical tools to build competitive advantages: The three generic strategies, value chain analysis, SWOT Analysis, and The Five Forces Model.
- The three generic strategies help to ascertain whether the organization is competing through cost leadership (providing low-cost offerings), product differentiation (offering exclusive, high-quality products) or by targeting a specific market niche for service.
SWOT analysis, managers examine the strengths and weaknesses within their company as well as those of competitors, while identifying opportunities and threats.
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Value chain analysis, firms can identify ways to cut costs, boost profitability, and add more value for customers by analyzing the various processes of production and service post-delivery.
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- Porter's five forces model serves as a tool for managers to assess the degree and intensity of competition
in a given industry, determining which market to engage with or avoid. It offers insights into the bargaining leverage of both buyers and suppliers, along with the risks posed by substitute products to the organization’s offerings.
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Response:
$78
Clarification:
Profit margin refers to the ratio of profit in relation to sales, where profit is calculated as the difference between sales revenue and costs.
Thus, profit margin computes the ratio of this difference to the sales figures.
Given a target margin of 22%, this can be expressed as
22% = profit/(20,000 units × $100)
Profit = $440,000
Total expenses = $2,000,000 - $440,000
= $1,560,000
Target cost per unit is then calculated as $1,560,000 divided by 20,000
= $78
The formula to calculate a customer's lifetime value is the person's total spending MINUS the cost to sustain the relationship
Explanation:
It's essential for any company to assess customer lifetime value to ensure success. Customers are a pivotal element influencing the growth of any business. They are central to buying goods and services produced by the business. Understanding how much it costs to acquire new customers compared to retaining existing ones is crucial.
By analyzing CLTV, a company can make informed decisions regarding marketing goals, cutting acquisition costs, and improving customer retention strategies.CLTV can be determined by taking the amount a customer spends and subtracting the total investment made to maintain that customer relationship.
Answer:
Both price and quantity rise
Explanation:
The reduction in soda prices boosts soda demand. As moviegoers typically enjoy popcorn along with their drinks, this spike in soda demand can lead to increased demand for popcorn, thereby raising both its price and quantity.
