,MNE3701 Assignment 4 (COMPLETE ANSWERS)
Semester 2 2024 - DUE 11 October 2024; 100%
TRUSTED Complete, trusted solutions and
explanations.
Having acquired sufficient knowledge and skills on financial
management for small business, you must demonstrate
practical competencies in constructing financial statements and
in conducting feasible financial forecasting. As a new
entrepreneur understanding financial management and
accounting, forms an integral part of running your small
business. In addition, you should also be able to forecast the
financial outcomes that could result from your decision. The
projections of business’s profits, its assets and financial
requirements, and its cash flows are essential in determining
whether your business is economically viable. Having acquired
sufficient knowledge and skills on entrepreneurship and small
business management, you must demonstrate practical
competencies in applying a pricing system and promotional
planning. Think of any business you would like to start and
answer the following questions: QUESTION 1 By using practical
examples, critically discuss how you would applying a pricing
system in your business. (10) QUESTION 2 By using practical
examples demonstrate how you would conduct the promotion
of your product in your business.
Starting a new business involves careful planning and execution,
particularly in financial management, pricing, and promotion.
, Below, I'll outline a pricing system and promotional strategies
for a hypothetical small business—a local artisanal bakery.
QUESTION 1: Applying a Pricing System in My Business
1. Cost-Plus Pricing:
I would calculate the total costs of producing each item,
including ingredients, labor, overhead (rent, utilities), and
packaging. For instance, if the cost to produce a loaf of
sourdough bread is $2, I might apply a markup of 50%,
pricing the bread at $3. This method ensures all costs are
covered while providing a reasonable profit margin.
2. Competitive Pricing:
I would analyze the pricing strategies of nearby bakeries
and similar businesses to determine an appropriate price
point. If competing bakeries sell their artisanal bread for
$3.50, I might price mine at $3.25 to attract price-sensitive
customers while remaining competitive.
3. Value-Based Pricing:
I would emphasize the quality and unique aspects of my
products (e.g., organic ingredients, gluten-free options) to
justify a higher price. For example, if a gluten-free cake
takes more time and premium ingredients, I might price it
at $25 instead of $20 to reflect its value and appeal to
health-conscious customers.
4. Psychological Pricing:
Semester 2 2024 - DUE 11 October 2024; 100%
TRUSTED Complete, trusted solutions and
explanations.
Having acquired sufficient knowledge and skills on financial
management for small business, you must demonstrate
practical competencies in constructing financial statements and
in conducting feasible financial forecasting. As a new
entrepreneur understanding financial management and
accounting, forms an integral part of running your small
business. In addition, you should also be able to forecast the
financial outcomes that could result from your decision. The
projections of business’s profits, its assets and financial
requirements, and its cash flows are essential in determining
whether your business is economically viable. Having acquired
sufficient knowledge and skills on entrepreneurship and small
business management, you must demonstrate practical
competencies in applying a pricing system and promotional
planning. Think of any business you would like to start and
answer the following questions: QUESTION 1 By using practical
examples, critically discuss how you would applying a pricing
system in your business. (10) QUESTION 2 By using practical
examples demonstrate how you would conduct the promotion
of your product in your business.
Starting a new business involves careful planning and execution,
particularly in financial management, pricing, and promotion.
, Below, I'll outline a pricing system and promotional strategies
for a hypothetical small business—a local artisanal bakery.
QUESTION 1: Applying a Pricing System in My Business
1. Cost-Plus Pricing:
I would calculate the total costs of producing each item,
including ingredients, labor, overhead (rent, utilities), and
packaging. For instance, if the cost to produce a loaf of
sourdough bread is $2, I might apply a markup of 50%,
pricing the bread at $3. This method ensures all costs are
covered while providing a reasonable profit margin.
2. Competitive Pricing:
I would analyze the pricing strategies of nearby bakeries
and similar businesses to determine an appropriate price
point. If competing bakeries sell their artisanal bread for
$3.50, I might price mine at $3.25 to attract price-sensitive
customers while remaining competitive.
3. Value-Based Pricing:
I would emphasize the quality and unique aspects of my
products (e.g., organic ingredients, gluten-free options) to
justify a higher price. For example, if a gluten-free cake
takes more time and premium ingredients, I might price it
at $25 instead of $20 to reflect its value and appeal to
health-conscious customers.
4. Psychological Pricing:
