New product Essay Example | Topics and Well Written Essays - 500 words - 1

New product - Essay Example The first stage was the idea generation stage where various ideas were generated (Keiser and Myrna 75). The ideas were thereafter screened looking at the feasibility and the profitability of the product sales. The ideas that passed the screening test entered the concept development and testing stage. It is at this point that the ideas are stated in a manner that targeted consumers can understand. The concepts were then tested with a small constituency of the target market. Strong concepts that meet the target market expectation proceeded to the marketing strategy stage whereby the initial products are marketed among the target consumers. The next stage is the business analysis stage in which the sales and costs analysis is taken to determine whether they are in line with the company objectives (Keiser and Myrna 76). Since the magic cloth, met the customers’ satisfaction and was profitable because of the high sales rate. The costs analysis also showed that the economies of scal e would reduce the unit production stage. The final stage is the commercialization stage in which the product was launched officially for sale in the market. In setting the prices, the company considered the costs incurred in the production process and marketing costs (Keiser and Myrna 77). Other factory overheads and operational costs was also included in determining the total costs. After consideration of all the costs, a margin was set which would ensure that the targeted profit is earned. Besides, the price set was pegged on external factors like the prices of competitors. In the highly competitive industry, consumers are sensitive to prices and any overcharge could lead to loss of sales. Moreover, the demand also had an impact on the sales price. At times of high demand, magic cloth was sold at a higher rate compared to low demand period. Since the prices cannot be constant in a free market where competition is encouraged, there was ways in which the prices were adjusted. First,

The Hair Emporium Coursework Example | Topics and Well Written Essays - 1000 words

The Hair Emporium - Coursework Example There are various reporting requirements in franchising as already mentioned above; information shared is both operational and contractual. Through the Franchise Disclosure Documents (FDD) the franchisor is required to disclose or share its annual audited financial accounting reports with the franchisees (Mann & Roberts, 2007). Consequently, the franchisees can/may request current FDD in accompaniment with audited financial statements at any time. Further, the franchisor is obliged to provide on-going assistance to the franchisees as stated in the franchise agreement; this often occurs via franchise operations and training manuals that are continuously updated. FDDs usually include franchise agreements, and financial statements including the balance sheet, statement of earnings, income statement, cash flow statement and the statement of owner’s equity. These documents are vital as they help the Franchisees to know the franchisor’s history of profitable operations (Mann & Roberts, 2007). Further, the FDDs help the franchisees to know whether the franchisor is financially stable currently for them to increase or decrease their investment in the latter. A list of current franchisees with their current contacts is also important as the franchisees or prospective franchisees can use the information to contact others inquiring about their experience with the franchisor (Mann & Roberts, 2007). ... Given this fact, Rolando and Rosa will have to share all its financial and accounting records with its subsequent franchisees to ensure smooth operation of its business (Baldwin, et al., 2011). Importance of completing balance sheets and operating statements on a monthly and yearly basis Completing balance sheets and operating statements on monthly and yearly basis by the Hair Emporium is vital; the firm will be able to determine its profitability at any given month; franchisor will be able to know whether through its franchising operations, it has the ability to earn profits or incur loses (Baldwin, et al., 2011). For the firm to be in business it must be able to earn profits. According to these facts, completing balance sheets and operation statements on monthly and annual basis will help the Hair Emporium understand whether it is earning profits or incurring loses within the said periods. Secondly, the Hair Emporium will understand its liquidity; for instance, the company will kno w its ability to meet both its short-term and long-term financial obligations. Consequently, completing balance sheets and operating statements on monthly and yearly basis will help the Hair Emporium to know how efficient it is in delivering services. For instance, how productive the firm is utilizing its assets relative to its revenue and its profits (Baldwin, et al., 2011). In the same line of discussion, the Hair Emporium will be able to understand its financial stability; the firm’s overall financial strength will be established through these monthly and yearly checks. The firm will also use the completed monthly and yearly financial statements to estimate its future income and expenses based on