Preview

Answers to Select End of Chapter Questions

Powerful Essays
Open Document
Open Document
1387 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Answers to Select End of Chapter Questions
16. Since we have the profits from all three scenarios we just to compare the present values of each scenario. We do not need to subtract anything from the present value since the costs have already been subtracted from profits.

We can see that we have the highest present value of $290.87 when we use high advertising intensity. Therefore this is the recommended scenario.

Q2. This question deals with margin analysis, we will look at incremental revenues and costs and see whether they are worth it. On the revenue side we have an increase on 9807700, however we also have incremental costs of television airtime, ad development and a loss of $6000000 in another division

We can see that when we add up the incremental costs, they exceed the extra revenues by 317100. Therefore I do not recommend that this campaign to be undertaken.

Q21. Producer ---Producer. The Brazilian and five other producers are competing against the US Southern Shrimp Alliance. Both groups are competing to provide the customers with the best shrimps at the lowest cost. However currently the Brazilian Producers have an advantage with their lower labor, cheap land etc.
Government and Market; According to the current scenario, the Brazilian Group would be choice of the market since they can produce it much cheaper. However, the Sourthern Alliance is trying to lobby the Government into imposing tariffs Brazilian Imports.
Consumer Producer Rivalry; The American Seafood Distributors, which represent consumers of shrimp farming, are interested in having the lowest cost. They are supporting the Brazilians and can potentially choose not to buy from the US based shrimp farmers.
Consumer – Consumer Rivalry; Is pretty low, since they have banded together to form the American Seafood Distributors.
Five Forces Analysis: Shrimp Farming Industry
Power of Buyers; High
Buyers have formed the American Seafood Distributors, which means they can ask negotiate in bulk and choose whether they buy

You May Also Find These Documents Helpful

  • Better Essays

    Brine Shrimp Lab

    • 1200 Words
    • 5 Pages

    There were many problems that we faced during the lab. One problem that occurred was that my partner did not let the brine shrimps swim around for five minutes. Second problem that occurred was that my partner dropped most of the shrimps in to tab water resulting in many deaths of the shrimp. This cause our data to be not accurate.…

    • 1200 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Hamptonshire Express Case

    • 632 Words
    • 3 Pages

    2. a. According to the simulation spreadsheet, 4 hours of investment in creation maximizes daily profit at $371.33.…

    • 632 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Bargaining power of suppliers – not really applicable in this case. Unless one considers Mother Nature to be the supplier. Lobsters are pulled directly from the ocean.…

    • 352 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Class or Mass

    • 1972 Words
    • 7 Pages

    Neptune Gourmet Seafood is North America’s third largest seafood producer playing in a market where seafood is considered high-end. They have generated nearly a third of its revenue from selling frozen and processed fish through US grocery chains and organic food retailers. An even bigger market is through the many restaurants within 250 miles of Fort Lauderdale that they sell to; along with many big cruise lines. The final third of their market was through wholesalers who then sold the fish to restaurants across the country. Neptune was considered top quality, and therefore demanded a 30% premium over the majority of its competitors. They…

    • 1972 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    The focus of EEC’s investment of the purchasing of the supplier is to cut down on the cost expenditures of the company. The primary board members and investors anticipate in the timeframe the fifth of to save financially in revenue $600,000 per annum this will accumulate $9 million in net in the timeframe of that 15 years. 14% of that investment and consumption cost will be attributed out of $9 million net, which adds up to sum of $3 million. The president of the company asked me to give an analysis in the possibilities foreseen in the investment what would be the Net Present Value, along with the Internal Rate of Return, and the payback of the investment.…

    • 1228 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    QAT 1 TASK 5

    • 398 Words
    • 2 Pages

    1.) The Company has determined that it has two alternatives for improving profits: develop new products either rapidly or thoroughly, or consolidate existing products by strengthening products or reaping without investing. On the first branch of the decision tree we know that the decision to develop thoroughly has a probability of 0.4 in a good market and predicted gains of $500,000. The second State of nature would be a moderate market reaction with a probability of .4 and predicted gains of $25,000. The third state of nature is a poor market reaction with a probability of .2 with predicted gains of $1,000. The expected monetary value (EMV) is determined by multiplying the probability in each state of nature by the predicted gains and then adding sums of each state of nature. The EMV (Developing thoroughly) =.4(500,000) +.4(25,000) +.2(1,000) =210,200…

    • 398 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The competitive environment in the value added seafood industry, while not significantly threatening, does still have its challenges. Addison and Rathle acknowledge that there is not a large competitive market for their specific area, although there are four or five that market gumbo. They acknowledgee that their largest competitors are all the other food items in the store that can be purchased. This also relates to marketing competition as Azalea used a food broker and administrative staff to monitor product delivery and store marketing exposure. Finally, there are corporations that have larger, state of the art facilities which prevent Azalea from expanding into larger demand markets. Michael Porter, a Harvard professor developed a model to assess key components of the competitive environment. First are the competitors. While currently not faced with stiff competition from peer competitors, Azalea’s largest competitors may be the ones yet to arrive as Azalea is based mainly on its gumbo. It is vulnerable to a competitor that may enter the market who have a broader range of products to offer or a better tasting product. More aggressive companies with more aggressive marketing campaigns stand to threaten Azalea’s exposure. Also, while not threatening the niche that Azalea has carved out, large companies with state of the art, USDA approved processes create a “glass ceiling” that Azalea can not break through without expansion or creative marketing. The next element is threat of entry. Azalea appears to have a very loyal base of customers both in the large markets and the smaller individual vendor community. However, the industry could expand at any time and with many unfilled areas of seafood product…

    • 1295 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    What to Do About Shrimp

    • 367 Words
    • 2 Pages

    Most wild shrimp are caught by a process called trawling. In this method large nets are cast and towed through the ocean. However, these nets capture everything in their paths. When fishermen pull up these nets they keep the fish, but often discard the others which makes for unnecessary pain. In my opinion shrimpers should find a better way to catch their bounty. Shrimp trawlers only contribute to only two percent of the shrimp consumption. Yet, they create over a third of the wasted sea life.…

    • 367 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Pharmasim

    • 2383 Words
    • 10 Pages

    • To maintain advertising budget expenditure above $26 million, minimum $10 million toward Allround, Allround+ and minimum $9 million toward Allright…

    • 2383 Words
    • 10 Pages
    Good Essays
  • Satisfactory Essays

    Chapter 8 Quiz

    • 912 Words
    • 4 Pages

    | Suppose the cost of producing cellular phones declines from $25 to $20. If buyers’ valuations remain fixed at $30, the transaction would create _____ more economic value.Answer…

    • 912 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Product Introduction to Brazil by negotiating with customs and local Unions to accept a foreign supplement of components into their economy and determine the most favorable options for new business.…

    • 5139 Words
    • 21 Pages
    Powerful Essays
  • Satisfactory Essays

    What had happened was, in the four months that had passed since that well blew out in the Gulf, my Step Daddy Cade’s job at Carson & Company (They’re a seafood distribution company in Mobile.) had slowed down to a standstill. My Step Daddy Forrest—sometimes I like to call my Step Daddy Cade, Forrest Gump, because he’s born and raised in Alabama, he’s a bit of a dip shit, and he works in the shrimp industry—had spent the last twelve years working for C&C and when that well blew out. It had killed all the fishing in the Gulf real quick. The shrimp industry alone had decreased by more than seventy percent virtually overnight, which meant, everyone in the area who had depended on the Gulf for their livelihood was now hitting the unemployment…

    • 135 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Sacu

    • 328 Words
    • 2 Pages

    * Recently The SACU and The Marcosur are going to sign a deal which will give the Namibian exports access to huge markets across the Atlantic.( Marcosur is a trade bloc associated with Paraguay, Uruguay, Peru ,Columbia , Chile, Ecuador & Bolivia). The Namibian exports include dried grapes, vegetables & Maize seeds. It is estimated that the SACU will successfully reduce the cost of imports on these products, thus creating increased profit margins for the Namibian Businesses.…

    • 328 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Marine species like prawn, mullet, milkfish, and golden tilapia were being produced and distributed to farmers at a minimum cost. Today, milkfish and prawns contribute substantially to foreign exchange income.…

    • 5049 Words
    • 21 Pages
    Powerful Essays
  • Best Essays

    References: Begossi, A. 2006. Temporal stability in fishing spots: conservation and co-management in Brazilian artisanal coastal fisheries. Ecology and Society 11(1): 5. [online] URL: http://www.ecologyandsociety.org/vol11/iss1/art5/…

    • 3438 Words
    • 14 Pages
    Best Essays

Related Topics