How Specifically Do The Distinctive Features Of Zara’s Business Model Affect Its Operating Economics?

438 words - 2 pages

Explain and demonstrate the relationship between supply and demand for Mrs. Acres Homemade Pies.
Shelly can supply 2000 pies each month for $4.5 each, netting $1.5 profit per pie with three part-time employees, however the demand is higher than what she can do, so eventually Shelly expanded her operations, borrowing money and increasing staff to four full-time employees. The production time increase to 8000 pies per month with profit soared to $12,000 per month.

As per the chart showed within only six months the demands increased 4 times, and it promises to increase more in the next quarter. It brings challenges to ...view middle of the document...

Or another case when she increase the price then she cannot competitive with others. On the second option, It’s seem reasonable one because when the demand increase that means the all buyer are willing to buy at this price and other new market share also accept this price then we should expand facility and staff to adapt the market’s requirement. On the third option it is a good idea to contract the production to a national restaurant chain to make it popular for everyone and Shelly can has a percentage of profits with minimal involvement. However with the current company’s level is quite small to make a mark on the market then it hard to convince any national restaurant chain to do this, and with the current price her net profit will be decrease a lot, another case may coming is national restaurant can become her competitive on this market.
In my opinion, Shelly should choose the second option to expand the facility and staff while maintaining the current price, it will help her to keep and expand the market share. When she have a name on the market then she can consider on the price raising to segment the market and this is time she should consider applying the third option.

Other Papers Like How Specifically Do The Distinctive Features Of Zara’S Business Model Affect Its Operating Economics?

The Affect Of The Aggregate Demand

844 words - 4 pages – aggregate supply model allows us to see what factors influence prices and real output in the short-run, or as the economy proceeds through the business cycle. And now we will see how the aggregate demand effects economy in the short run by analyze the changes in aggregate demand can “move” the economy through the business cycle. As we can see in the diagream below, a decrease in aggregate demand moves the economy into recession with a rise in

Ten Principles Of Economics And How Markets Work

750 words - 3 pages Ten Principles of Economics and How Markets Work 365/ECO July 18, 2016 University of Phoenix Ten Principles of Economics and How Markets Work Economics is the study of how society manages its resources, and how they are allocated (Mankiw, 2015). People must understand how the markets, trade, and government can affect items like inflation, investing, and their standard of living. Frequently, the government will interfere

Five Competitive Forces In The Biotechnology Industry And Its Economics Scenarios

1797 words - 8 pages control of the production of the drugs. Their in-house manufacturing protects intellectual property, know-how, and product quality. As a consequence, the majority of the drugs are exported to other countries. These countries, such as Venezuela and Brazil, have their own currency. For this exercise, I will describe how inflation can negatively affect the biotechnology business in Venezuela. The healthcare system in Venezuela is universal: Every

Business Ethics And Its Results In The Workplace

391 words - 2 pages “Business ethics in the workplace is about prioritizing workplace moral values and ensuring that employees align their behavior with these values - its values of management. Yet there are many myths abound about business ethics and the majority of these come from a general confusion about the concept of ethics, while other myths come about from constricted or one-dimensional views of ethical predicaments”. (McNamara, n.d.). The first myth of

Physician Affect The Cost Of Health Care For Insurance

270 words - 2 pages /clinical services combined account for half (51%) of the nation’s health expenditures. Doctors and hospitals bill insurers for every individual service — every office visit, MRI or hour of operating-room time — a "fee for service" model that drives health-care inflation by rewarding providers who order potentially unnecessary tests, perform potentially unnecessary surgeries and even make mistakes. A hospital readmission caused by avoidable

Judgement On How Business And Cultural Environments Shape The Behaviour Of A Selected Organisation

2103 words - 9 pages each day and so may reduce people’s motivation * It can affect role, position and the nature of rewards. Modern information systems make it easy to record and reward people’s performance. For example, you can easily measure how many calls a person in a call centre takes, or how many components a machine operator creates. Unfortunately, the true situation is more complex. The customer-facing staff in call centres may be rewarded for dealing

A Dramaturgical Model Of The Production Of Performance Data

353 words - 2 pages Executive Summary Sarah Nancy Tri Novedy Naibaho SIT ( #3 ) MM UGM KELAS 37 A-C A DRAMATURGICAL MODEL OF THE PRODUCTION OF PERFORMANCE DATA System informasi mengandung berbagai macam informasi yang sangat berguna dalam menjalankan suatu bisnis, baik untuk mengetahui suatu keadaan atau dalam hal pengambilan keputusan. Berdasarkan artikel ini, penelitian menunjukkan bahwa para pemimpin menggunakan system informasi untuk

‘’A Flexible Firm Model Optimizes The Use Of Human Resources’’

838 words - 4 pages * For example, Barclays decided equality and diversity policies and practises into business, employment, suppliers and community. Barclays manage diversity and recognize differences. * The idea of flexible firm is a framework for deep research, where scientists have to test theories and models how organizations are able to combine the two strategies of flexibility minimizing advantages and conflicts within the firm.

Factors That Affect The Study Habits Of First Year Students Of Dominican College San Juan City

993 words - 4 pages Factors that Affect the Study Habits of First Year Students of Dominican College San Juan City Jacobe, Jesena, Quiboloy, Teves IV- Our Lady of Lourdes Chapter 1 Introduction Background of the Study The extent of a student’s learning in academics may be determined by the grades a student earns for a period of learning has been done. It is believed that a grade is a

What Fundamentals Affect The Yield Of Bonds In The Singapore Market

3435 words - 14 pages .  One  area  of  high  growth  is  in  the  Islamic  debt   area.       For   the   purpose   of   the   report,   we   will   be   looking   into   more   detail   on   how   certain   firm   and   economic   fundamentals   affect   bond   yields   (corporate   bonds).   We   chose   to   focus   on   several

How Do Class, Gender, Sexuality Or Race Work In Relation To Taste Today? Using At Least Two Key Theorists Discussed On The Course, Explain How Ideas Of Taste Are Presented In Any Two Media Texts

2414 words - 10 pages MUD08243876Differences in cultural capital mark the differences between the classes” Pierre Bourdieu How do class, gender, sexuality or race work in relation to taste today? Using at least two key theorists discussed on the course, explain how ideas of taste are presented in any two media texts. The concept of good taste and class has always been a sensitive subject for those perceived as lacking

Related Essays

How Do Variations In An Area’s Income Level Affect The Social, Economic And Environmental Impact Of A Cyclone?

1721 words - 7 pages How Do Variations in an Area’s Income Level Affect the Social, Economic and Environmental Impact of a Cyclone? All hurricanes may hold an element of danger, but some have many more catastrophic social, economic and environmental impacts, mainly due to an area’s income level. Hurricane Katrina and Cyclone Nargis were both very powerful tropical storms, but differed greatly in impacts in the two areas, due to economic reasons, as we will

Boeing Changes The Nature Of Its Business With Global Collaboration

830 words - 4 pages lifecycle management across multiple countries enabled by technology that differentiates Boeing’s new model from the previous kinds of global relationships. Boeing also uses the new partnership to solicit ideas of how to improve designs, integration, and so on. This results in cost-cutting. Boeing maintains 10 multimedia rooms at its Everett, Washington, complex for the use of collaboration teams. These are open 365 days a year, 24 hours a day. A

The Affect Of Developmental Factors On How A Five Year Old Child Copes With Loss

1352 words - 6 pages The Affect of Developmental Factors on how a Five-Year-Old Child Copes with Loss Loss is an unavoidable experience for all children through the different developmental stages of life. These loses may be seen through a child losing or breaking a favourite toy, or through parents being divorced, moving houses, the loss of familiar routines, schools, or friends, and also through the death of someone close to them (Corr, Charles; Balk, David. 2010

The Social Model Of Disability Essay

452 words - 2 pages The social model of disability What is the social model of disability, and why is it important to us? The social model of disability says that disability is caused by the way society is organised, rather than by a person’s impairment or difference. It looks at ways of removing barriers that restrict life choices for disabled people. When barriers are removed, disabled people can be independent and equal in society, with choice and control