Case Study of Week Essay

Analysis of the templet is most sui disconcert for Kinkead. The case is establish on the case, electricity meters (EM), power tools (EI) crossroads for customers to perform the same basic function. So their alternatives, so it needs to calculate a gross revenue combined variances template, template B did non provide this data. stop B Answer match to the relationship between the BCG matrix, analysis of securities industry share and market growth.First, for the EM 499 286 According to Table, the variance of the size of the market is unfavorable, the size of the market beca role their work out is 800000, but the demonstrable market size of 650000, it does non implement the expectations. The EM market share difference to 0, with 10% of the genuine and computeed position, it result non change. Therefore, they are a notes cow. Therefore, EM is the Cash Cow. Additionally, the Kinkead has been a leaders Australia firm, and EM is the older but still dominant technology.Followe d by EI table EI of the variance of the size of the market for 374,464 budgets, the size of the market for 250,000, lower than the positive market size of 363,500, much than expected. The market share variance is 241,321 critical which has decrease from 10% to 8%. Therefore, EI question mark. In addition, EI technology is new, or experiment. EIs future is uncertain. Part C Answer They seek cash cow product strategy, so there are two aspects of the weighty aspects of the performance, EM, reduce production be and increase market share.More particularly, their market share of the difference does not change, which means it is a mature stage, and manufacturing has been barized. So the connection should take some new measures to reduce production be. Secondly, the company should increase their market share, such as increased management fees. EI use of labeling strategies, there are three aspects of performance is in truth important to the EI. The early is the R D performance the y should increase R D costs continue to research new technologies for enterprises to create more profits in the future.Followed by market share, companies need to increase their market share of the product EI, because it is the mark phase of the problem, the future is uncertain. Thus, increasing its market share will change in the future star. Finally, production and sales is also very important, EI, because precisely effective production, to meet customer demand, increase the number of sales. Part D Answer Assessment of the electromagnetic properties of the first actual sale price of $ 29, less than the standard price of $ 30, but only exchange 65,000 units lower than mean sales of 80,000 units.There are two reasons direct to this situation, first of all is their total market demand has been shrinking. Second, the actual sales commission EM is only $ 1, but the EI commission is $ 14. 9, which could lead salespeople do not want to distribute the product. To evaluate the EI per formance, the first problem is underpriced. Although the actual selling price is $153 which is higher than $150, the sale volume is 29,000 units which is large than budget 25,000 units.Secondly, although the size of the market from EI budget increase 250,000 units 362,500 units, the EI market share is not meet expectations, it has dropped from 10% to 8%. This means that the performance of the EI Company is not satisfied. Third, the staff may lack experience, because the actual manufacturing cost is $ 42. 1, higher than the standard $ 40. Finally, from a fixed cost analysis can be found, $ 121,000 of costs and unfavorable actual production costs are higher than the planned $ 11,000, from $ 1,388,000 to $ 1,399,000. Therefore, enterprises should improve production efficiency.On the other hand, the overall performance of EM and EI, and a profit of $ 51,000, cost of sales decreased $ 5,000 plans to invest $ 250,000 of the actual value of $ 245,000. The sales fluff variance data can be found, there are more people choose EI, because the EI sales mix variance is $ 1,789,714 EM sales mix variance is $ 1,253, 571 should not be. The reason may be that the sales staff did not want to sell products EM, actual sales commission EI is 14. 9 dollars, but the commission is only $ 1. Second, EI is a new product and new technology, which will attract more customers to buy and more popular than the old.