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Essay / Research Paper Abstract
This 3 page paper looks at a case study of a firm operating in Germany and the US to assess potential future approaches to business in difficult economic climates and assesses production and pricing decision ands considers entering new markets. The bibliography cites 2 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TElarson1.rtf
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Unformatted sample text from the term paper:
decision made based n each market. The firm is facing challenges as a result in the slow down in the economy and the problem in the credit markets which has
impacted outwards. Both marketer have similar issue with high unemployment and low interest rates, the US has the largest potential market, it is also the market where Larson
is least established, only being present in the market for five years. The main issue with the US market appears to be the high level of competition and the inability
of the firm to differentiate itself in the market where competitors products are seen as homogonous. This makes it difficult not only to make sales, but also to gain consumer
loyalty. With unemployment of 9.9% this is a poor economic indicator and it is likely that were the products are seen as equally acceptable from different undifferentiated suppliers it will
be a market that is highly price sensitive. Here the firm needs to either differentiate itself more of to find a way of reducing costs in order to compete and
increase demand. As the market is very price sensitive, this means that products are elastic, so decrease in price are likely to result in increases in demand greater than the
proportional decrease in price and as such increase revenues, so while the revenue per battery may be lower the overall revenue and profit may be higher and the firm could
benefit from a slight drop in price. The costs of manufacture in the US are lower than in Germany, and the markets for export for equipment are already established,
as such the costs of transporting and any import duties tariffs may be considered with a view to increasing manufacture in the US to benefit from the economies of scope
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