Submitted by: Submitted by suesmieth
Views: 129
Words: 690
Pages: 3
Category: Societal Issues
Date Submitted: 03/04/2014 09:30 AM
IV.Recommendation:
A.Health Products
Company A
should continue to penetrate its market inorder to sustain the margin percentage. However, cost-benefit considerations should also be considered suchthat if maintaining its market would entail more costand will provide less benefits, it would be advisableto reduce the number of its subsidiaries.
Company B
should expand its market. It can be achievedby having advertising projects aimed to mass markettheir products in an effort to attract more consumersand generate larger revenue.
B.Household Appliances
Company C
should maintain its strategy to operateunder a single brand name. In addition, if thecompany’s sales to assets ratio can still be improved,much better.
Company D,
since selling under 3 different brand namesentail more cost, they should make an effort to reducebrand names. However, qualitative factors should alsobe considered such as the market demand for thatparticular brand, its impact on consumers and itscontribution to the company’s total income.
C.Computers
Company E,
which also engages in financial andinsurance services, should take a closer look and
emphasize on credit management; that is, efficientmanagement of receivables, credit granting, and takingprecautions with regards to uncollectible accounts. Inaddition, it should generate larger income in the formof interest.
Company F
should provide a balance of all sorts. Acompany may have a larger margin but with its highselling prices, it would not be attractive on theconsumers’ point of view. The company should expand onits production and maintain reasonable level of R & Dcosts.
D.Retailing
Company G
should sell more on credit. A healthybusiness enterprise allows for selling goods on creditbecause it will generate more revenue and would beattractive from the consumers’ viewpoint. However,focus is still on the possibility of uncollectibleaccounts, but nonetheless, it is still a necessarycost of credit sales.
Company H...