T.J. ‘s Corporation Business Plan
March 25, 2013
Dr. Guthlac Kirk Anyalezu
T.J’s Corporation Business Plan
T.J.’s Corporation Business Plan
In today society the development of technology, which are items that individual normally use being transferred into a different era. These are the items which, individual’s use every day newspapers, magazines, and now books has been supplementary to the technology world in the form of Kindle, Nook, eBook, or on CD's. T.J.’s Corporation will produce a technology which, will take a book, which the corporation can use and scan it into an eBook along with an accurate synthetic voice for individuals to listen. However, T.J.’s Corporation will show how the revenue will increase, determine the profit-maximizing quantity, and marginal revenue to maximize profit. Also T.J.’s Corporation will analyze mix of pricing and non-pricing. T.J.’s Corporation will be looking for a location to work on the proposal and have the supplementary employee’s to help with transference of books to the digital format. T. J.’s is currently working out of a small building and with the new proposal needs something bigger. Working in a small building puts the employees in the situation where he or she is working with little run to work. With the new location it will allow T.J.’s Corporation to work on the new design and have the consumer’s product out faster.
Assumptions and Market Structure
Although other corporation have books out in eBook, the books are merely only accessible in the merchandise provided by that company. T.J.’s Corporation merchandise consumers will have the option of reading the book quite or read along with the digital sound track. Since, T.J.’s owns a patent on their technology their company is considered monopoly, because T.J.’s is permitted the only business that is selling this type of merchandise (McConnell, Brue, & Flynn, 2013). Also there is an assumption that any employee which will be working in a month is about $300 based on sales. T.J.’s Corporation has to generate another digitizer for their workers to have so more books can be downloaded quicker. Growth of Revenues
TJ’s Corporation requires an improved marketing strategy for their digitized books this approach will allow sales to increase. If T. J.’s changes the prices of their books their revenue will also increase. T.J.’s Corporation is using a small website and on the sight the prices are as follow: $10 for books with failed copyright (old books), and $15 for books containing an copyright (new books). T.J.’s Corporation sold 1,000 old books and 2,000 new books in the first six months. T.J.’s did some research, found the new books could be brought for $5 charge and CD are $20 (R.L. Copple, 2013). With this information the company can rise their new books price to $18 to add a $3 profit and lower their older books to $7. The change in price could actually help boost the sales of the books because the older books are at a lower price which could increase revenues and the increase in price on the newer books will increase the profit.
In addition, if Bury were to market his books to high school and college students there could be an increase of revenue. Bury would need to add text books to the books being digitized but if students have the option of listening to someone read the books the information might be easier for them to understand. The pricing on the books would have to be increased because of the actual price of the textbook and a higher copyright fee. The addition of the books would help to increase revenue and bring more traffic to his site for the other books. Profit maximizing
Will Bury would need to look at his fixed costs (those costs that do not change the output) and the variable costs (costs that do change based on the level of output). Bury's variable costs are the five dollars for the copyrighted books that will...