Exam (elaborations)
MNE3701 Assignment 4 (COMPLETE ANSWERS) Semester 2 2024 - DUE 11 October 2024
MNE3701 Assignment 4 (COMPLETE ANSWERS) Semester 2 2024 - DUE 11 October 2024
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
,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)
To apply a pricing system in my business, let's imagine I am
starting a small bakery named "Sweet Treats Bakery,"
specializing in custom cakes, pastries, and artisanal bread. The
, pricing system in any business directly impacts its profitability,
market competitiveness, and customer perception. When
establishing a pricing strategy for "Sweet Treats Bakery," I would
consider the following key aspects:
1. Cost-Based Pricing
The foundation of pricing involves understanding all the costs
associated with producing my baked goods. This includes direct
costs such as ingredients (flour, sugar, eggs, etc.) and indirect
costs like rent, utilities, labor, and packaging. The pricing for
each product would be calculated by adding up all these costs
and applying a mark-up to ensure a profit margin.
For example:
The cost to produce one loaf of artisanal bread is R20
(ingredients + labor + utilities). If I apply a 50% mark-up to
cover operational expenses and achieve a profit, I would
price the bread at R30 (R20 + 50% = R30).
2. Market-Oriented Pricing
To stay competitive, I would analyze the pricing of similar
businesses in the local area. For instance, if competitor bakeries
are charging between R28 and R35 for artisanal bread, I would
set my prices within that range. This approach ensures that I
attract price-sensitive customers while remaining competitive.
For premium or unique products like custom cakes, I could
charge higher based on the value perceived by the customer.
For example:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Novaace1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R45,25. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now
