Pricing Model Essays (Examples)

Pricing Management

Determinants of Pricing Strategies

In pricing a new, specialized electronic product, the product development, engineering, marketing, accounting and finance teams internally will rely on internal and external factors to initially set the price. Pricing objectives and the frameworks they require will determine the internal factors included and excluded from the long-term pricing strategy overall (Avlonitis, Indounas, 2005). The intent of this analysis is to evaluate the other internal factors that will affect the pricing of a new, specialized electronic product.

Analysis of Internal Factors Affecting Pricing

ased on personal experience managing high technology products and from anecdotal interviews with members of product marketing teams in high technology businesses, the decision of whether to choose a value-based vs. cost-based approach to pricing is foundational to how many other internal factors affect price (Wagner, 1981). Value-based pricing will have a direct effect on the price elasticity of demand for a…

Bibliography

Avlonitis, G.J. & Indounas, K.A. 2005, "Pricing objectives and pricing methods in the services sector," The Journal of Services Marketing, vol. 19, no. 1, pp. 47-57.

Casey, M.P. 1985, "International Transfer Pricing," Management Accounting, vol. 67, no. 4, pp. 31.

Lucke, D., Philipp, J.H.S. & Schumacher, D. 2005, "A Note on R&D and Price Elasticity of Demand," Jahrbucher fur Nationalokonomie und Statistik, vol. 225, no. 6, pp. 688-698.

Michalakelis, C., Dede, G., Varoutas, D. & Sphicopoulos, T. 2010, "Estimating diffusion and price elasticity with application to telecommunications," Netnomics: Economic Research and Electronic Networking, vol. 11, no. 3, pp. 221-242.

Pricing Water From a Utility Perspective

Water is usually a scarce commodity but not in all situations, such as in Virginia, which is characterized by plentiful ground water supply. However, the relevant agencies in this state incur costs relating to drilling and pumping water from the ground, procurement and infrastructure costs. Because of this, pricing of water has become an important factor in water management. For utility companies in Virginia and other states, selling the water at the appropriate price is increasingly important since low costs do not cover operational costs, whereas high costs contribute to inadequate sales. The determination of the most suitable pricing model or scheme requires critical evaluation from a utility perspective and whether this commodity is affected by the same principles of economics as other goods and services or utilities.

Price Sensitivity of Water

From a utility perspective, water has seemingly weak price sensitivity as compared…

References

Gaudin, Sylvestre, Ronald C. Griffin, and Robin C. Sickles (2001). Demand Specification for Municipal Water Management: Evaluation of the Stone Geary Form. Land Economics, 77(3), 399-422.

Gaudin, S. (2007, February 2). Effect of Price Information of Residential Water Demand.Applied Economics, 38(4), 383-393.

Gaudin, S. (2004, March).Transparent Prices for Municipal Water: Impact of Pricing and Billing Practices on Residential Water Use. Retrieved from Department of Economics -- Oberlin College website: https://new.oberlin.edu/dotAsset/96202.pdf

Howe, C.W. & Linaweaver, F.P. (1967).The Impact of Price on Residential Water Demand and Its Relation to System Design and Price Structure.Water Resources Research, 3(1), 13-32.

From a supply chain standpoint, pricing departments must also create a high level of communication and collaboration across a business as well. Their role is to be the orchestrators of internal effort to manage suppliers to pricing and margin levels, ensuring consistency and focus on share goals. This is one of the primary reasons pricing has now become a strategic initiative within many businesses. For change to occur in how companies do their pricing strategies, it often takes a senior executive to manage the change in processes and systems to ensure pricing becomes strategy and shifts away from being tactical in focus (Marn, oegner, Zawada, 26).

From the sell-side or the distribution and selling channels standpoint, pricing has never been more critically important to a company's profitability. The continued consolidation of industries and commoditization of products making tracking pricing elasticity by product category critical, especially when they are sold through…

References

Manu Carricano, Jean-Francois Trinquecoste, and Juan-Antonio Mondejar. "The rise of the pricing function: origins and perspectives. " the Journal of Product and Brand Management 19.7 (2010): 468.

Thomas H. Davenport. "Make Better Decisions. " Harvard Business Review 1 Nov. 2009

Vrinda Kadiyali, Pradeep Chintagunta, and Naufel Vilcassim. "Manufacturer-retailer channel interactions and implications for channel power: An empirical investigation of pricing in a local market. " Marketing Science 19.2 (2000): 127.

Krishna, a., F. Feinberg, and Z. Zhang. "Should Price Increases Be Targeted?-Pricing Power and Selective vs. Across-the-Board Price Increases. " Management Science 53.9 (2007): 1407-1422.

Pricing Method

In any market, there is bound to be a strategy that is used to decide on the prices that the commodities or the services that the potential clients will be in need of. Since the goods or the services availed are always targeted at making a profit at the end o the day, pricing is one of the most fundamental focuses that the entrepreneurs have to keenly look at in order to strike a balance between making profit and retaining clients for the item offered.

In the case scenario below, the pricing methods that should b used in determining the prices of canned vegetables and Aspirin are looked at, the various methods that can be used and how different the pricing methods are as well discussed.

Pricing method for canned vegetables

Taking into account that almost each food outlet has canned vegetables, with several alternatives floated by each…

References

Scott Allen, (2012). Pricing Methods: Four Models for calculating your Pricing. Retrieved November 27, 2012 from  http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy_2.htm 

Commonwealth of Australia, (2009). Policies, Procedures and Methods Used in the Recommendations for Pricing of Pharmaceutical Products 2009. Retrieved November 27, 2012 from  http://www.health.gov.au/internet/publications/publishing.nsf/Content/health-pbs-pbpa-pricing-policiesdoc~pricing-methods

The penetration pricing strategy is intended to be temporary, such that once the desired market effect has occurred -- the penetration has been made -- the price is then put to a more "normal" price.

An example of this in recent news is the introduction by Burger King of BK Smooth Roast Coffee. This new blend of coffee was developed to make Burger King more competitive in the fast food breakfast business, where it trails the market leaders badly. The new blend was offered with an introductory price of 25 cents (QSR eb.com, 2013). The objective of this pricing strategy was twofold. The first objective was penetration -- to get people to try the coffee in the hopes of winning over some converts. Ideally, the customer would come in daily during the promotion because this is the cheapest coffee around, and develop a habit.

The other objective is to bring…

Works Cited:

Clow, J. (2012). What small businesses can learn from Google. USA Today. Retrieved March 9, 2013 from  http://usatoday30.usatoday.com/money/smallbusiness/story/2012-05-27/small-business-can-learn-from-google/55188670/1 

QSR Web. (2013). Burger King celebrates new coffee with 25-cent promotion. QSR Web. Retrieve March 9, 2013 from  http://www.qsrweb.com/article/208731/Burger-King-celebrates-new-coffee-with-25-cent-promotion

Value-based pricing is critically important in B2B marketing and selling scenarios as well, as the value delivered by enterprise software for example determines the percentage of maintenance paid every year (Hinterhuber, 2004). These maintenance payments yearly form the foundation of Oracle Corporations;' viability, in addition to many hundreds of other enterprise software companies. As a result of the critical role of value-based pricing in market positioning, companies have created pricing and revenue management enforcement strategies (oll, 2009) to ensure their resellers, channel partners, dealers and service organizations do not price below the minimum threshold and I so doing erode the market position as defined by the premium price.

Summary

Studies indicate that to the extent a company can successfully manage and fine tune value-based pricing over time is the extent to which they can experience revenue and profit growth even in the middle of a recession (Garrow, Ferguson, 2009). Value-based…

References

Dunleavy, H., and G. Phillips. 2009. The future of airline revenue management. Journal of Revenue and Pricing Management: Special Issue: 'AGIFORS Conference' 8, no. 4, (August 1): 388-395.

Garrow, L., and M. Ferguson. 2009. Staying ahead of the curve: Using revenue management to help survive an economic downturn. Journal of Revenue and Pricing Management: Special Issue: Distribution and Revenue Management 8, no. 2-3, (March 1): 279-286.

Andreas Hinterhuber. 2004. Towards value-based pricing - An integrative framework for decision making. Industrial Marketing Management 33, no. 8, (November 1): 765-778.

Michael V Marn, Eric V Roegner, and Craig C. Zawada. 2003. The power of pricing. The McKinsey Quarterly no. 1, (January 1): 26-39.

Popular Cost of Equity Models: Problems and Potentials in Current Theory and Practice

It is important for any publicly traded business organization to understand and accurately estimate its cost of equity capital, in order to make effective capital-raising resource allocation decisions. There are several models for determining a supposedly accurate valuation for the current cost of equity capital for a given firm, however each of these models is imperfect in its approach and its ultimate assessment. The following pages provide an overview of three popular models for providing this valuation, assessing the models base don ease of use, accuracy of the prediction, and the degree to which the assumptions made or implied by the model are reflective of reality and actual operational capabilities. A final recommendation for a particular model is made following this assessment.

Ease of Use

One of the most straightforward methods for estimating the cost of equity…

References

Investopedia.com (2012). Financial concepts: capital asset pricing model (CAPM). Retrieved March, 2012, from  http://www.investopedia.com/ university/concepts/concepts8.asp

Money Terms (2012). Arbitrage pricing theory. Retrieved March, 2012, from  http://moneyterms.co.uk/apt/ 

Pages.stern.nyu.edu (n.d.). Dividend discount models. Retrieved March, 2012, from  http://pages.stern.nyu.edu/~adamodar/pdfiles/valn2ed/ch13.pdf

CAPM

There are several different models that can be used to help determine the cost of capital for a company. Each is based on a model, and can be understood not only in terms of its formula but also in terms of its underlying assumptions. These assumptions will provide the foundation for the model, and will inform the financial manager about the strengths and weaknesses of each model. This report will outline in detail three such major models for determining the cost of capital. The first is the capital asset pricing model, known as CAPM. The second is the dividend discount model, and the third is arbitrage pricing theory.

The capital asset pricing model is the first of the three major models for determining the cost of capital. CAPM is widely used to determine the cost of equity in particular. The underlying theory of CAPM is that stock returns relative…

References:

Investopedia. (2013). Capital asset pricing model. Investopedia. Retrieved September 15, 2013 from  http://www.investopedia.com/ terms/c/capm.asp

Investopedia. (2013). Digging into the dividend discount model. Investopedia. Retrieved September 15, 2013 from

Finance

Any Asset Pricing Theory forms the basic foundation of finance theory, in that it deals with the value of any asset under unknown or uncertain circumstances. The relationship between an asset and its price is the mainstay of the asset pricing theory: the lower the price, the poorer the expected performance. The Arbitrage Pricing Theory derives from this theory. The basic idea in the APT theory is that any sort of risk in asset returns must not affect the pricing of the asset in any way; it must depend on the covariance of assets with the risk factors. (Bayesian Approach of the Arbitrage Pricing Theory) The APT originated from Stephen oss, 1976-1978. oss had used a statistical procedure for assets returns, with the belief that there are in existence no arbitrage probabilities. The APT must of necessity involve a lot of risk taking processes, (Definition of Arbitrage Pricing Theory.)…

References

An Introduction to Investment Theory" Retrieved at  http://viking.som.yale.edu/will/finman540/classnotes/class6.html . Accessed on 29 July, 2004

Bayesian Approach of the Arbitrage Pricing Theory" Retrieved at  http://64.233.167.104/search?q=cache:Sa6l536IAccessed  on 29 July, 2004

Capital Asset Pricing Model" Retrieved at  http://www.investorwords.com/698/Capital_Asset_Pricing_Model.html . Accessed on 29 July, 2004

Definition of Arbitrage Pricing Theory" Retrieved at  http://economics.about.com/cs/economicsglossary/g/apt.htm?terms=economic+theoryAccessed  on 29 July, 2004

CAPM

There are three models that can be used calculate the cost of capital for the firm. The first such model is the capital asset pricing model (CAPM). The CAPM formula is: E (rj )= RRF + b (RM - RRF). This means that the company's cost of capital is a function of the risk free rate, the market premium and the firm-specific risk. In CAPM, the firm-specific risk is based on the correlation of the company's stock price to the broader market, a statistic known as the beta.

Another method is the dividend growth model. In this model, the assumption is that a stock's value derives solely from the dividends that it is paying, or that investors assume it will pay in the future. It is assumed that investors will not pay for capital gains, because those are uncertain. The formula for the dividend growth model is:

source: Investopedia.…

Works Cited:

Investopedia. (2011). Dividend discount model. Investopedia. Retrieved November 20, 2011 from  http://www.investopedia.com/ terms/d/ddm.asp#axzz1eCRhOJF0

Table 2, elationships in MNSC problem provide an analysis of these factors in the form of a decision matrix of transfer prices, transport cost allocations and trade quantities from an import and expert standpoint (Villegas, Ouenniche, 2008).

This is one of the more useful aspects of this article, in that it extrapolates the near-term decisions of transfer pricing systems directly and materially into the financial reporting of the firm in the same fiscal period. There is also the quantification of the MNSC purely from the effects of cross-supplier and supplier-buyer collaboration which gets much coverage in the industry press, yet lacks the quantification from a financial standpoint this article provides. The quantification of MNSC-based decisions purely on transfer pricing that is market-based leads to higher levels of volatility and uncertainty of earnings yet also gives firms a great control over the competitiveness of fulfilling their own demand over time. The…

References

Villegas, F., and J. Ouenniche. 2008. A general unconstrained model for transfer pricing in multinational supply chains. European Journal of Operational Research 187, no. 3, (June 16): 829.

Black-Scholes model is essentially a formula used in the calculation of a theoretical call price for options. It is considered to be the fundamental model for pricing in the option market (Cretien, 2006). This model uses in its calculation the five main determinants of an option's price, which include stock price, strike price, volatility, time left until expiration, as well as risk-free, short-term interest rate (Hoadley, 2010). The computations executed by the Black-Scholes model result in prices that are close to actual market value as long as input variables are determined that are reasonably accurate (Cretien, 2006). A benefit resulting from the use of this model is that it provides traders with a means to compare market prices with alternative values while using different inputs (Cretien, 2006). The Black-Scholes model also assists in the prediction of movements in price for investments other than options by providing a way to compute…

References

Crawford, Gregory. "A new model; The world of finance was changed when Myron Scholes and Fischer Black penned a paper on how to price an option.(P&I at 30: The class of '73)." Pensions & Investments. Crain Communications, Inc. 2003. HighBeam Research. 8 Dec. 2010 .

Cretien, Paul D. "Comparing option pricing models." Futures. . 2006. HighBeam Research. 8 Dec. 2010 .

Hoadley, Peter, (2010). Option pricing models and the 'Greeks'. Hoadley Trading and Investment Tools. Retrieved from  http://www.hoadley.net/options/bs.htm  8 Dec. 2010.

McKenzie, Scott; Gerace, Dionigi; Subedar, Zaffar. "AN EMPIRICAL INVESTIGATION OF THE BLACK-SCHOLES MODEL: EVIDENCE FROM THE AUSTRALIAN STOCK EXCHANGE." Australasian Accounting Business & Finance Journal. University of Wollongong School of Accounting and Finance. 2007. HighBeam Research. 8 Dec. 2010 .

CAPM

There are three different models for estimating the cost of capital -- the capital asset pricing model (CAPM), dividend discount model and arbitrage pricing theory (APT). Of these, CAPM is the best model. CAPM utilizes the returns on the company's stock to calculate the firm's cost of equity. The underlying theory is that the firm's cost of capital should "equal the rate on a risk-free security plus a risk premium" (Investopedia, 2012). The risk premium is related to the return on the company's stock. Arbitrage pricing theory is similar, using the same formula but instead of equating risk with the market return on the company's stock vs. The broad market index, the return on the company's stock is compared to a basket of macroeconomic indicators (Pietersz, 2011). These are chosen by the user, and the correlations must be calculated by the user and the weightings of the different indicators…

Works Cited:

Investopedia. (2012). Capital asset pricing model -- CAPM. Investopedia. Retrieved January 16, 2012 from  http://www.investopedia.com/ terms/c/capm.asp

Pietersz, G. (2011). Arbitrage pricing theory. MoneyTerms.co.uk. Retrieved January 16, 2012 from  http://moneyterms.co.uk/apt/

Corporate Finance

s explained by Professor Watkins at San Jose State University, the binomial option pricing model is when a stock price over some period is presumed to go up by a certain percent or down by a certain percent. This leads to a formula whereby the current stock price is multiplied times one plus the percentage it could go down and then the same formula is done for the percentage it could go up. If a call option is in play or if the stock has interest that is risk-free, then the formula gets a little more complex (Watkins, 2014). Risk-neutral option pricing relies on something known as arbitrage. In this instance, all future outcomes are adjusted for risk and the expected asset values that results are calculated thusly. Once that is done, every asset can be priced accordingly. This is not the same thing as true real-world risk…

As with other parts of doing business and the wants of all the stakeholders and investors involved, the agency problem is when the differing objectives and desired outcomes of the stakeholders and investors lead to business decisions that fail to properly and sufficiently maximize value. Not unlike situations where money is tugged between dividend payments and more investing in the business, an agency problem creates issues with mergers as the price a business is sold or bought for has a major effect on the motives and perspectives of the people involved. One academic theory that relates to this subject points out that perceived or stated value up front before a merger is approved and executed can differ greatly from the verifiable or perceived value found after the fact. Further, it is shown that managerial behavior by bidding companies is promoting of mergers that are excessive and managerial behavior in target firms tends to manifest in the opposite way. In short, the collusion and behavior of buying and selling firms leads to an improper price being paid for a firm and this can be either a boon or a bust for the buying firm (Caves, 1989).

Caves, R. (1989). Mergers, takeovers, and economic efficiency: Foresight vs. hindsight.

International Journal of Industrial Organization, 7(1), 151-174.

economics pricing system that allows smaller practices and organizations to buy and sell affordable prices is a must today. The use of technology to determine pricing strategys is prevalent in todays times. This can be illustrated with the following examples where companies have used technology to formulate their pricing strategy.

The pricing model for MDoffice offers an affordable entry price for smaller, less-demanding medical offices such as solo practitioners. These practices can extend their investment in MDoffice by easily moving from standalone PC's or laptops, to peer-to-peer networks, to sophisticated client/server installations involving LANs (Local Area Networks) and perhaps ANs (ide Area Networks). This easy migration from platform to platform can be accomplished in affordable increments.

The overall objective in all our pricing decisions is to offer great products at a fair price allowing our clients to get an excellent return on their investment and to have an affordable growth…

Works Cited

 http://www.mdbase.com/flash/strategies.htm#Pricing%20Strategy 

Economics for Business" by John Sloman and Mark Sutcliffe - Prentice Hall - ISBN 0-273-65187-0

For example, if the Fed sees inflation as a risk going forward, the market will place a weighting on that statement, allocating some form of increased interest rate to the future cash flows.

At the time of course, the exact implications of the Fed's comments are unknown. They imply that rates may move in one direction or another, but they are not an actual movement and the Fed reserves the right to change its mind before it meets again. The bond market is thus working with imperfect information. This can lead to general price movements but of unknown quantity. Over time, a reasonable correlation can be established, such as the elasticity of bond prices in relation to, for example, strong warnings from the Fed about inflation. Such a correlation can be drawn with a large enough sample size that it can be used in bond prices.

Overall, though, the exercise…

Works Cited:

No author. (2009). Advanced Bond Concepts: Bond Pricing. Investopedia. Retrieved April 29, 2009 from  http://www.investopedia.com/ university/advancedbond/advancedbond2.asp

No author. (2009). The Grand Illusion. The Economist. Retrieved April 29, 2009 from  http://www.economist.com/finance/displaystory.cfm?story_id=13240822 

Heakal, Reem. (2009). Forces Behind Interest Rates. Investopedia. Retrieved April 29, 2009 from

market structures and the pricing strategies which are specifically related to each of them. The introductory section of the paper gives an overview of the four major types of market structures and explains the main features which draw distinguishing lines between them. These major types of market structures are perfect competition, monopolistic competition, monopoly, and oligopoly. The second section discusses the pricing strategies which are used by competitors in each of these market structures in order to compete with the other competitors or operate in a profitable and competitive fashion. A case study has also been included which gives a real life example of the market structure and pricing strategies of a specific company. The paper concludes by giving summary and key findings from the whole discussion.

Introduction to Market Structures

Market structure refers to the number of competitors operating in a particular industry and the level or intensity of…

References

Boyes, W.J., & Melvin, M. (2012). Economics, 9th Edition. Mason, Ohio: South-Western Cengage Learning

Gitman, L.J. & McDaniel, C.D. (2009). The Future of Business: the Essentials, 4th Edition. Mason, OH: South-Western Cengage Learning

Hall, R.E., & Lieberman, M. (2010). Micro Economics: Principles and Applications, 5th Edition. Mason, OH: South-Western, Cengage Learning

Mankiw, N.G. (2011). Principles of Economics, 6th Edition. Mason, Ohio: Thomson South-Western

Pricing Strategies and Decisions
Pricing Strategy Management
Pricing Policies, Processes and Methods
Policies used to manage Tesla’s pricing strategy. Currently Tesla is not only benefiting by but is actually relying on government subsidies to sell its cars. Subsidies come from electric vehicle (EV) tax credits that purchasers are able to obtain whenever they buy a Tesla. The problem is that these credits are only given to consumers for a set duration. Once the government ends the subsidy, sales drop drastically, as has been in the case in Hong Kong where tax incentives basically were the whole of Tesla’s pricing strategy—and once the tax incentives ended, sales were decimated. Currently in Norway, which is Tesla’s biggest European market, consumers pay no import tax or any of the purchase taxes that apply to non-EV cars—which is a big incentive (Tesla 10-K, 2018, p. 22). In the Netherlands, sales are soaring this year…

Pricing Strategy 
There are several critical factors that affect making pricing decisions: customers, competitors, regulations, government laws, the overall economy, and production costs and some of the most important variables to look at when deciding on a pricing strategy. As Zeng, Dasgupta and Weinberg (2016) put it, differentiation is key to developing a pricing strategy that works for a company that has to set itself apart from competitors in order to secure market share. For Tesla, which is the subject of this paper, the electric vehicle (EV) market is beginning to heat up as competitors come into the business with their own products. That means Tesla has to differentiate itself with a pricing strategy that will appeal to the biggest consumer base in the market—the average middle class consumer. In the past, Tesla has relied on the luxury brand market to drive sales—but with investors anxious for a return on…

Over the last few years, the government has exerted more control on the insurance industry by controlling premium rates meaning the industry has become less competitive on pricing. In addition to this, through Obamacare, the government has set requirements for healthcare insurers which have significantly reduced their medical loss ratio Dinan 396.

The second factor that affects the degree of competitiveness of the industry is the number of companies operating in the industry. This has been the major reason for the hundreds of mergers in the industry since this is the major driving factor for changes in market share. The last factor is government-provided health insurance. The government provides insurance plans which create significant competition for the private companies Vanness and olfe 101()

The productivity measures that can be developed are the number of health insurance consumers, average cost of providing medical cover and price of health insurance premiums. The…

Works cited

Austin, D. Andrew, and Thomas L. Hungerford. The Market Structure of the Health Insurance Industry. Washington, DC: Congressional Research Service, 2009. Print.

Baughman, Reagan. "Differential Impacts of Public Health Insurance Expansions at the Local Level." International Journal of Health Care Finance and Economics 7.1 (2007): 1-22. Print.

Dinan, John. "Shaping Health Reform: State Government Influence in the Patient Protection and Affordable Care Act." Publius 41.3 (2011): 395-420. Print.

Dossche, Maarten, Freddy Heylen, and Dirk Van den Poel. "The Kinked Demand Curve and Price Rigidity: Evidence from Scanner Data." The Scandinavian Journal of Economics 112.4 (2010): 723-52. Print.

Market Model Changes

The medtech, or medical technology, industry is a large and intensely competitive industry that produces highly innovative medical devices for hospitals and other healthcare facilities in the effort to save lives and improve health for patients (Research, 2012). It is spread across different segments including, cardiology, oncology, neuro, orthopedic, and aesthetic devices. It relies largely on aging baby boomers, high unmet medical needs, and increased incidence of lifestyle diseases, including cardiovascular disease, diabetes, hypertension, and obesity.

The industry is being challenged by pricing concerns, hospital admissions and procedural volume, uncertainty concerning healthcare reform, Medicare reimbursement issues as agencies are looking for cost reduction measures, and regulatory overhang. There is a rise in patients deferring treatment in elective procedures. "One factor aligning economic and clinical forces: in the U.S., the number of medical practices owned by hospitals grew from 25% in 2005 to 50% in 2008" (practice, 2011).…

Bibliography

Blog, I. (2012, Mar 12). MedTech Industry Stock Outlook. Retrieved from Financial Content: http://markets.financialcontent.com/stocks/news/read/20832505/MedTech-Industry-Stock-Outlook

practice, B.G. (2011, Feb 9). Creating a new commercial model for the changing medtech market. Retrieved from Bain & Company:  http://www.bain.com/publicatgions/articles/creating-a-commercial-model-for-changing-medtech-market.aspx 

Research, Z.E. (2012, June 15). MedTech Industry Stock Outlook-June 2012-Zacks Analyst Interviews. Retrieved from Nasdaq:  http://community.nasdaq.com/News/2012-06/medtech-industry-stock-outlook-june-2012-zachs-analysts-interviews.aspx ?

Marketing

Pricing Strategies

The pricing of a product or service is an important aspect of the marketing mix. The pricing of a product will need to be set at a level that will support the firms' long-term profitability; even were there are short-term market penetration strategies or loss leading prices, the ultimate aim of the firm is for the generation of revenues and creation of profit. The pricing strategy chosen by a firm will depend on a number of factors; these will include the market conditions and strategies of the competing or complimentary products, as well as the level of differentiation and the market position that the firm us seeking to gain (Kotler and Keller, 2011). Two examples may be used to assess the way pricing strategies may be formulated; a media distributor and aspirin.

Media Distributor

A media distributor, such as NetFlix or Love Film, has a limited amount…

References

Drury, C, (2012), Management and Cost Accounting, Cengage Learning EMEA

Hooley G; Nicouland B; Piercy, N, (2011), Marketing Strategy and Competitive Positioning, Financial Times/Prentice Hall

Kotler Philip; Keller Kevin, (2011), Marketing Management (13th Edition), Prentice Hall.

Mintzberg Henry, Ahlstrand Bruce, Lampel Joseph B. (2008), Strategy Safari: The Complete Guide Through the Wilds of Strategic Management, Financial Times / Prentice Hall

hen expanding, the Assemblage will be more focused on setting up locations with a high amount of traffic from our target 21-35 demographic but Manhattan's density and role as an entertainment magnet allow for us to build our business.

The overall marketing objective is to build the brand and set up the expansion and penetration phase. The flagship Manhattan location supports that because of the ability and the diffusion value from visitors taking back memories of the Assemblage to their home cities, to which we will ultimately expand. On the broader level, disturbing in entertainment districts with high youth traffic will allow the Assemblage to best reach the target market. As market penetration occurs, the brand will over time become linked to entertainment and good times in a manner that is consistent across all of our markets.

orks Cited:

Altman, H. (1987). ho's gored by gouging? Nation's Business. Retrieved May…

Works Cited:

Altman, H. (1987). Who's gored by gouging? Nation's Business. Retrieved May 15, 2010 from  http://findarticles.com/p/articles/mi_m1154/is_v75/ai_4963234/ 

Bovay, K. (2008). When to use a product line pricing strategy. EZine. Retrieved May 15, 2010 from  http://ezinearticles.com/?When-to-Use-a-Product-Line-Pricing-Strategy&id=1341523 

No author. (2010). Pricing strategies. Marketing Teacher. Retrieved May 15, 2010 from  http://marketingteacher.com/Lessons/lesson_pricing.htm

In their view, the assumption of indexation to past inflation is the key factor driving this result. According to them, when viewed in the light of indexation to long-run inflation, the optimal inflation volatility often moves closer to zero. They equally showed that for the welfare rankings of policies, the initial conditions do matter to a very significant extent.

In their work, Leeper Erik et al. examined how the conventional dynamic stochastic general equilibrium models, including the Christiano-Eichenbaum-Evans model is affected or impacted by government investments. As a way of explaining the effects of government investments in this regard, they considered two main factors, namely, the future fiscal adjustments to debt-financed spending and implementation delays for building public capital projects. In their work they demonstrated that, in the short run implementation delays can produce small or even negative labor and output responses; while for both a qualitative and quantitative positive…

Works Cited

Christiano Lawrence J., Martin Eichenbaum, & Charles Evans. "Nominal Rigidities and the Dynamic Effects of A Shock to Monetary Policy." Federal Reserve Bank of Cleveland Working Paper May 2001: 5-50.

DiCecio, Riccardo, Edward Nelson." An Estimated DSGE Model for the United Kingdom." Federal Reserve Bank of St. Louis Review July/August 2007.  http://research.stlouisfed.org/publications/review/07/07/DiCecio.pdf 

Fischer, Stanley. "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule." Journal of Political Economy. 5 June, 2011.  http://www.jstor.org/pss/1828335 

Keen Benjamin, Wang Yongshang. "What Is A Realistic Value for Price Adjustment Costs in Keynesian Models?" Department of Economics, University of Oklahoma. 5 June 2011. http://faculty-staff.ou.edu/K/Benjamin.D.Keen-1/Price_adjustment_costs.pdf

market structures in detail and analyses the pricing strategies that the firms have to undertake when they operate in different regimes. The case study on Toyota is considered next, which indicates that firms competing in various structures does not only have to focus on price and quantity ceteris paribus, they also have to consider external and internal variables that have a bearing on these decisions.

Introduction to Market Structures

Market structures are important parts of economic theory as they model market behavior that can help economists explain activities in industry with ease. Market structures, hence are basically models that define market behavior with respect to certain criteria so that it becomes simpler to compare events in real life to the postulated scenario as described in theory in order to be able to determine casualties and to define optimal strategies that firms operating in different market structures can use.

There are…

References

Bennett, D., Hagiwara, Y., & Kitamura, M. (2011, September 5). Toyota Bets on Japan. Bloomberg Businessweek, pp. 70-73,. Retrieved from http://web.ebscohost.com/ehost/detail?sid=fbe40510-c02e-4a4c-afc8-b21dbb1445c3%40sessionmgr11&vid=1&hid=10&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=60477158

Cusumano, M.A. (2011). Technology Strategy and Management Reflections on the Toyota Debacle. Communications of the ACM, 54 (1), 33-35.

John Petersen (2011). Bernstein and Ricardo Report: Cheap Will Beat Cool in Vehicle Electrification. Retrieved from http://www.altenergystocks.com/archives/2011/11/bernstein_and_ricardo_report_cheap_will_beat_cool_in_vehicle_electrification.html

Lipsey, R.G., & Chrystal, K.A. (2007). Economics. Oxford: Oxford University Press. Retrieved from  http://books.google.com.pk/books?id=HgXWV8JMC10C&printsec=frontcover&dq=Economics+lipsey&hl=en&sa=X&ei=qPIuT9DdPM7wrQeQ_LzYDA&redir_esc=y#v=onepage&q=Economics%20lipsey&f=false

Pricing is the largest competitive advantage Dell has, specifically their ability to quickly respond to changes in prices from their own suppliers. Dell's website is tailored to allow for rapid price changes, and together with the custom configuration capability, pricing is the reason why Dell excels against so many competitors.

Columbus (2003) discusses the role of special pricing requests being critical for the long-term profitability of companies that have high inventory turn items and rapid product lifecycles, as Dell does.

In terms of distribution or place, the ability of Dell to create customized PCs through any one of several manufacturing plants is really the 4th P. Of the marketing mix. The Dell manufacturing system acts as a foundation to support the execution of all 4 Ps in marketing, and certainly "place" or distribution is more dictated by the ability of the company to automatically route and fulfill orders from the…

References

AMR Research (2003) - Configuration is the Heart of Customer Fulfillment for Complex Product Manufacturers. AMR Research Report. Monday March 31, 2003. Retreived from the Internet on May 3rd, 2006 at http://lwcresearch.com/filesfordownloads/ConfigurationIstheHeartofCustomerFulfillmentforComplexProductManufacturers.pdf

Askegar and Columbus (2002) - Channel Management Best Practices: It's All About Orders. AMR Research Report. Monday September 9, 2002. Retrieved from the Internet on May 7, 2006:

http://lwcresearch.com/filesfordownloads/SqueezetheRevenueOutofSPRs.pdf

Columbus (2002) - The Sell-Side E-Commerce Market: It's All About Integration. AMR Research Report. Monday April 1, 2002. Retreived from the Internet on March 6, 2006:

Google Monopoly

Technology and the internet have brought about many changes in nearly all facets of modern living. As a result, markets and financial systems also have felt the impacts of this massive revolution. Monopolistic trends have been witnessed in the past decade as those organizations who can capitalize on a market, or by creating a brand new market, dominate with product innovation and keen business practices

The purpose of this essays is to exaine Google as company who is exisiting and flourishing in a monopoly market. The serach engine market has produced billions of dollars of revenue for this internet company. This essay will describe the major factors that affect the degree of the competitiveness in this market that Google is currently dominating. The essay will also examine the competitive forces that are trying to vie for business share and competitive advantage in this particular market.

Signs of a…

References

Bort, J. (2013). Steve Ballmer: Google Is a Monopoly and Should Be Investigated by The Governement. Business Insider, 20 Sep 2013. Retrieved from  http://www.businessinsider.com/steve-ballmer-google-is-a-monopoly-2013-9 

Crawford, S. (2012). Is Google A Monopoly? Wrong Question. Bloomberg, 8 July 2012. Retrieved from  http://www.bloomberg.com/news/2012-07-08/is-google-a-monopoly-wrong-question.html 

Efrati, A. (2013). Google Earnings: Profit Up But Search Ad Prices Drop 6%. The Wall Street Journal, 18 July 2013. Retrieved from  http://online.wsj.com/news/articles/SB10001424127887324263404578614290220266684 

Goodwin, D. (2013). Google Fails to Gain Search Market Share, Bing Steals From Yahoo. Search Engine Watch, 14 Nov 2013. Retrieved from  http://searchenginewatch.com/article/2307115/Google-Fails-to-Gain-Search-Market-Share-Bing-Steals-From-Yahoo

From this standpoint, Sony was successful in using pricing as a significant messaging part of their product mix.

When analyzing the pricing strategies Sony has relied on since the introduction of the PSP3 globally, the observations of Porter (1999) on the implications of price as competitive advantage within his Determinants of National Competitive Advantage (sometimes called the Porter Diamond) illustrates how Sony is using price to attempt to create equilibrium across Factor Conditions and Demand Conditions (pg. 78). The approach Sony takes to first ascertain the demand curve by geography first, and second, to create unique and differentiated market positions second, align with the approach Porter (1999) advocates in using as he calls it, the Diamond of National Advantage" to attain demand equilibrium and in balance. Porter advocates innovation and human productivity as the two most potent differentiation strategies for entire industries and their strongest industries, hence the title of…

References

CRM Buyer (2005) - Searching for Blue Ocean Strategies. Louis Columbus. CRMBuyer.com. September 23, 2005. Accessed from the Internet on October 29, 2007 from location:  http://www.crmbuyer.com/story/46292.html 

Kotler, P, & Keller, K (2006). A Framework for Marketing Management.Upper Saddle River: Pearson Prentice Hall. Pages 217-236.

McKinsey (2003) - Marn, Michael; Roegner, Eric; Zawada, Craig. "The Power of Pricing," 2003 Number 1. Boston, MA McKinsey Quarterly. Pages 27-36.

Porter, Michael (1999) "The Competitive Advantage of Nations" March - April, 1999. Boston, MA. Harvard Business Review. Page 73-91.

Price Call Models

Black-Scholes Model and the Binomial Model are some of the widely used price call options. Despite the fact that these two models share the same theoretical foundation and assumptions like the Brownian motion theory and risk neutral valuation, they happen to have some notable differences (endleman & Bartter, 1979).

The Black-Scholes model is basically used to calculate a theoretical call price. This call price ignores dividends paid during the life of the call option. Some of the determinants of the option price include stock price (S), strike price (X), volatility (v), time to expiration (t), and short-term interest rate (r) (endleman & Bartter, 1979). This model has got some assumptions. One of the assumptions is that the stock pays no dividend during the option's life. This assumption is a serious limitation of the model considering that companies do pay dividends to their shareholders (endleman & Bartter, 1979).…

References List

Conroy, R.M. (2003). Binomial Option Pricing. Retrieved August 27, 2013 from http://faculty.darden.virginia.edu/conroyb/derivatives/Binomial%20Option%20Pricing%

20_f-0943_.pdf

Rendleman, R. & Bartter, B. (1979). Two State Option Pricing. Journal of Finance, 34 (1979),

While Virgin America has just begun flying in the U.S. On August 8, 2007, this last aspect of service pricing strategy is relatively new, yet the company has a very successful track record with global flights on Virgin Airways using this strategy. In summary, the three key ways in which service prices are different for consumers include the use of service pricing on the part of services providers (in this case Virgin America) to optimize pricing for given markets and audiences (charter vs. full faire), define services segmentation while underscoring their UVP, and lastly incent greater levels of loyalty over time through pricing that invites self-efficacy on the part of their customers.

eferences

Bolton, N., Myers, M (2003). Price-Based Global Market Segmentation for Services: [1]. Journal of Marketing, 67(3), 108-128. etrieved April 43, 2008, from ABI/INFOM Global database. (Document ID: 678339141).

Docters, ., eopel, M., Sun, J., Tanny, S (2004).…

References

Bolton, N., Myers, M (2003). Price-Based Global Market Segmentation for Services: [1]. Journal of Marketing, 67(3), 108-128. Retrieved April 43, 2008, from ABI/INFORM Global database. (Document ID: 678339141).

Docters, R., Reopel, M., Sun, J., Tanny, S (2004). Capturing the unique value of services: why pricing of services is different. The Journal of Business Strategy, 25(2), 23-28. Retrieved April 2, 2008, from ABI/INFORM Global database. (Document ID: 625503741).

Kim, B., Park, S (2008). Optimal pricing, EOL (end of life) warranty, and spare parts manufacturing strategy amid product transition. European Journal of Operational Research, 188(3), 723. Retrieved April 4, 2008, from ABI/INFORM Global database. (Document ID: 1426348951).

Li, M (2006). A model of pricing perishable inventories using two restrictions, with an application to airline pricing. Journal of Revenue and Pricing Management, 4(4), 329-343. Retrieved April 4, 2008, from ABI/INFORM Global database. (Document ID: 1025479531).

) to engage in online price discrimination (Ramasastry, 2005). For instance, Amazon has used dynamic price to offer discounts to customers comparing prices on a bargain hunter Web site and to offer special prices to first-time customers (Ramasastry, 2005). To date, online price discrimination based on information about individual customers has been limited primarily by consumer resistance to this practice. A University of Pennsylvania survey revealed that eighty-seven percent of people believed the practice should be illegal (Ramasastry, 2005).

ibliography

Allen, C. (2000, February 8). Dynamic pricing. http://www.clickz.com/showPage.html?page=820911

Ramasastry, a. (2005, June 24) Web site change prices based on customer's habits. CNN. http://www.cnn.com/2005/LAW/06/24/ramasastry.website.prices/index.html

Rincon, a. Definition of dynamic pricing. http://onlinebusiness.about.com/od/onlinebusinessglossary/g/dynamicpricing.htm

Weiss, R.M..and Mehrota, a.K (2001, Summer). Online dynamic pricing: Efficiency, equity and the future of e-commerce. Virginia Journal of Law and Technology. http://www.vjolt.net/vol6/issue2/v6i2-a11-Weiss.html#legality

Bibliography

Allen, C. (2000, February 8). Dynamic pricing.  http://www.clickz.com/showPage.html?page=820911 

Ramasastry, a. (2005, June 24) Web site change prices based on customer's habits. CNN.  http://www.cnn.com/ 2005/LAW/06/24/ramasastry.website.prices/index.html

Rincon, a. Definition of dynamic pricing. http://onlinebusiness.about.com/od/onlinebusinessglossary/g/dynamicpricing.htm

Weiss, R.M..and Mehrota, a.K (2001, Summer). Online dynamic pricing: Efficiency, equity and the future of e-commerce. Virginia Journal of Law and Technology. http://www.vjolt.net/vol6/issue2/v6i2-a11-Weiss.html#legality

e-Business Models of Dell Computer and Gateway

The e-business models of high tech manufacturers that combine quoting, pricing, and product configuration systems with production, Enterprise esource Planning (EP), and fulfillment systems exemplify how advanced multichannel selling has progressed over the Internet. The intent of this analysis is to evaluate Dell and Gateway's e-business models, as each have real-time integration of their customer facing quoting, pricing and product configuration systems with production, EP and fulfillment systems. Both of these companies are redefining the value chain of high tech manufacturing using the speed and accuracy of the Internet as the basis of their multichannel selling strategies. Selling over the Web, through telemarketing, catalogs, through stores, mass merchandisers including WalMart, and for enterprise accounts, through a direct sales force, Dell's e-business strategy is what makes it possible to unify all these channels into a consistent user experience. Dell continues to evolve their e-business…

References

CG Ash, & JM Burn. (2003). A strategic framework for the management of ERP enabled e-business change. European Journal of Operational Research, 146(2), 374-387.

Rob Bois. (2004). Quoting Complex Products across Multiple Sales Channels -- A

Sales Configuration Vendor Landscape. In AMR Research Editing Services (Ed.), AMR Research Series. Boston: AMR Research.

Louis Columbus. (2003). Configuration Is the Heart of Customer Fulfillment for Complex Product Manufacturers. In AMR Research Editing Services (Ed.), AMR Research Series. Boston: AMR Research.

Saturn's Pricing Strategy

The Unique Project - Saturn

The Saturn Project was an experiment by General Motors to stop the heavy loss in terms of sales that GM was undergoing to the Japanese car manufacturers. This was an attempt to manufacture and market cars in a way different from the traditional methods of GM. This was the reason that GM did not set up the Saturn Project as a division of GM like Chevrolet or uick. Saturn was set up as an independent company. To make sure of the complete change in thinking even in manufacturing, GM shifted the factory for production from traditional Detroit to Spring Hill in Tennessee. Since the competition was to be specifically with Japanese cars, the manufacturing technology was also made to the best international standards available then. (Avertising Age, May 5, 1997, p. 30)

To get the necessary support from the workers, the company…

Bibliography

Ferrell, O.C. "Saturn," in O.C. Ferrell, Michael D. Hartline, George H. Lucas, Jr., and David Luck, Marketing Strategy, Ft. Worth, TX: Dryden Press, 1999, pp. 187-193

Road Hazard," Advertising Age, May 5, 1997, p. 30

Koenders, J. Chris. Achieving Customer Satisfaction Through Distribution Partners: The Case of Saturn BMW, Munich, Wujin Chu, Seoul National University, May 1994 retrieved at http://www.centerworld.net/prof/wchu/product/classdata/SATURN.html. On 07/24/2003

Saturn Cars: Saturn Prices ION to Attract Young Buyers, September 17, 2002 retrieved at  http://www.saturnfans.com/Cars/ION/2003/2003ionpricing.shtml . On 07/24/2003

Samsung Console Marketing

Pricing of the SamsunG console will be based on the pricing for competitive consoles. As noted, there are three main rival companies, offering a range of different console options. Kotler and Keller (2007) point out that the price of competing products is one of the most important drivers of the price of any new product. There are a number of pricing strategies for market entry -- penetration pricing and skim pricing among them (NetMBA, 2010). Penetration pricing is the strategy that Samsung should use for its new console. There are a couple of reasons for this recommendation. The first is that while the console is of good quality, it lacks the established brand and pantheon of games that the other consoles have. In addition, the new console is costly to produce, so the more volume sales the company can generate the more it can enjoy economies of…

Works Cited:

Kotler & Keller. (2006). Marketing Management (12th ed.). New Jersey: Pearson-Prentice Hall.

Lindsay, M. (2009). How to develop the right communications strategy for a conversation economy. Ad Age CMO Strategy. Retrieved November 27, 2011 from  http://adage.com/article/cmo-strategy/marketing-communications-strategy-a-conversation-model/139989/ 

NetMBA (2010) Pricing strategy. NetMBA.com Retrieved November 27, 2011 from  http://www.netmba.com/marketing/pricing/ 

QuickMBA. (2010). Foreign market entry modes. QuickMBA.com. Retrieved November 27, 2011 from  http://www.quickmba.com/strategy/global/marketentry/

employee stock option pricing is effected by the bonus plan hypotheses as discussed in the Watts and Zimmerman article.

Employee stock option pricing is an option on the common stock of a company that is issued as a form of non-cash compensation. estrictions on the option (as for instance vesting and limited transferability) are ways in which the business attempts to align its own interests with those of the holder's interests. In the event of the company's stock rising, holders of options generally experience a direct financial benefit, which gives employees the incentive to behave in ways that will boost the company's stock price (Summa; web).

The management compensation hypothesis, otherwise known as the Bonus plan hypothesis accordingly states that managers whose incentives are tied up with the firm's accounting performance are more likely to use accounting choices that reduce reported profits and manipulate their accounting methods and records in…

Reference

Summa, J. employee stock options. Investopedia.

www.investopedia.com/university/employee-stock-options-eso/eso3.asp

Watts, R. L & Zimmerman, J.L,"Towards a positive theory of the determination of accounting standards" The Accounting Review, January 1978, pp 112-34.

Threats:

Loss of industry as prices of oil are unstable due to market fluctuation

Long-term contracts cannot be formulated in the basis of changing prices

Gradual increase in prices can result into economic turmoil as raw materials and finished product prices will be increased lowering the economic process

Conclusion:

The trucking enterprises are significant in creating the United States transportation and freight industry. The transportation of raw materials and finished goods in required as most of the national and international corporations have established manufacturing systems in developing countries to take advantage of the supply chain management techniques. The business is significantly incorporating a market based approach. The influx of products and goods in high demand markets is one of the basic principles in free market economy. The business setup their manufacturing units in rural and industrial districts take advantage of the infrastructure and human resources available in these vicinities. However…

Ozener, O.O. (2008). Collaboration in transportation.USA: ProQuest.

Teravaninthorn, S., & Raballand, G. (2009). Transport prices and costs in Africa: a review of the main international corridors. World Bank Publications.

Yergin, D. (2006). Ensuring energy security. Foreign Affairs, 69-82.

Market Model Patterns of Change

Sir/Madam, answers attachment page. But write a APA format, citing quotations a APA format. answers fits 3 pages.

The operating system software industry that was dominated by Microsoft was a monopoly till quite some years back when other players came into the market and disrupted the monopoly. These players include Linux with their various operating system software such as edhat and Ubuntu and Apple with their Macintosh operating system.

The general pattern of change in this particular market model was that of monopoly to oligopoly. There are several short-run and long-run behaviors in the monopoly and oligopoly market models. In monopoly, there is only one market player who has full control over the market. However, in oligopoly, there are several market players who hold different market shares depending on their marketing strategies, brand awareness, product specification, product diversification, etc. Soberman & Gatignon, 2005()

The short-run…

References

Brooks, G.R. (1995). Defining Market Boundaries. Strategic Management Journal, 16(7), 535-549.

Chintagunta, P.K. (1996). Investigating the Effects of a Line Extension or New Brand Introduction on Market Structure. Marketing Letters, 7(4), 319-328.

Soberman, D., & Gatignon, H. (2005). Research Issues at the Boundary of Competitive Dynamics and Market Evolution. Marketing Science, 24(1), 165-174.

Wal-Mart

Porter's 5 Force Model

In this Porter's 5 Force Model analysis, specific focus is being paid to the competition of Wal-Mart that exists within the consumer retail industry rather than the industries in which Wal-Mart competes. We will be discussing the position of Wal-Mart in the industry with respect to various industry forces (St.Hilaire, 2012).

Threat of new entrants to a market: Medium pressure

Threats of new market entrants for Wal-Mart are relatively moderate for the reason that Wal-Mart has very strong marketing, distribution and purchasing along with the fact that it has sufficient capital to hire and train their employees and purchase merchandises (St.Hilaire, 2012).

Due to the fact that the Wal-Mart has built a brand name for itself and has excellent distribution systems as well as capital to keep the competitors at bay the barriers to entry are very high in this particular sector (Bryant, 2010).

Furthermore,…

References

St.Hilaire, K. (2012). Porter's Five Forces Model for Wal-Mart. Taken from: http://www.kylesthilaire.com/about-me/

Bryant. (2010). Business Strategy. Taken from:  http://team1walmart.blogspot.com/2010/07/business-strategy.html

Generally, the classification of model transformation tools is based on whether it is declarative or operational, directionality or multiplicity.

The study further discusses the sub-categories of model transformation that include:

hybrid transformation tools, graph transformation, relational, template based, operational based, structure driven and direct manipulation.

All the sub-categories of model transformation have the following features:

Hybrid transformation combines two or more transformation approaches;

Graph transformation focuses on graph rewriting over variation and extensions of labeled graphs.

Relational approach uses declarative approach-based mathematical relations; template approach uses model template specifications.

ATL Transformation Tool

The project reveals that ATL is one of the effective transformation tools used to semantic or syntactic translation and it is built on transformation Virtual Machine model. The ATL was developed from the ATLAS framework, which enabled the specification of one or more target models. The project further reveals that ATL is hybrid language providing the mix of…

Works Cited

Braun, P. & Marschall, F. BOTL The Bidirectional Object Oriented Transformation

Language. Institut fur Informatik Technische Universitat Munchen. 2003.

Cremers, A.B. Alda, S. & Rho, T. Chapter 13, Mapping Models to Code Object-Oriented Software .Construction. University of Bonn. German. 2009.

Einarsson, H.P. Refactoring UML Diagram and Models with Model-to-Model Transformation . Master of Science in Software Engineering, University of Iceland. 2011.

38). The Mundell-Fleming model is most graphically illustrated under the assumption of constant prices with the following three equations as shown in Figure 1 below.

E (Y, r) + NX (q, Y, Y*)

PL (Y, r)

NX - B (B, r, r *, q, q + ?) = 0.

Figure 1. The Mundell-Fleming model.

Note: All foreign values are indicated with an asterisk and are assumed to be exogenous; the sign of the partial derivative is denoted above each symbol.

Source: Bosworth, 1993, p. 37.

Notwithstanding it's the Mundell-Fleming Model's usefulness for certain applications are described above, it does have its constraints. According to Eichengreen and Frieden (2001), "The fixed vs. floating debate for Europe has largely been carried out (sometimes implicitly) in the context of the Mundell-Fleming model, so this model is the appropriate venue to consider the implications of local currency pricing. However, in this model, behavior is…

References

Bosworth, B.P. (1993). Saving and investment in a global economy. Washington, DC: The Brookings Institution.

Eichengreen, B., & Frieden, J.A. (2001). The political economy of European monetary unification. Boulder, CO: Westview Press.

Fan, C.M., & Fan, L.S. (2002). The Mundell-Fleming Model revisted. American Economist, 46(1), 42.

Macdonald, R. (1993). Floating exchange rates: Theories and evidence. Place of Publication: London: Routledge.

Keynesian Aggregate Expenditure Model

Two Quotations:

Company profits grew strongly in the June quarter putting another question mark over the extent of the predicted economic slowdown..."

However the central bank acknowledged that the weaker data for capital spending intentions are at this point the only clear evidence of an impending slowdown"

These two quotations regarding the same economic scenario seem to pose the question to consumers and economists alike -- why a predicted economic slowdown, if company profits are growing strongly? hy place so much fear in the data regarding capital spending intentions on the part of consumers? hy turn to the tools macroeconomics has long focused on, that of monetary policy, which the central bank controls, and fiscal policy, which the federal government controls, to shift the current state of economic equilibrium, as described above? (Schenk, 1997, "Synthesis")

The answer lies in the Keynesian aggregate expenditure model. This model…

Works Cited

Keynesian Aggregate Expenditure Model." (2004) Amos Web. Retrieved on June 20, 2004 at http://www.amosweb.com/cgi-bin/gls.pl?fcd=dsp&key=Keynesian+aggregate+expenditure+model

Macroeconomic Equilibrium. (2004). Retrieved on June 20, 2004 at http://nova.umuc.edu/~black/meq00.html

Scheck, Robert. (1997) "Activism." Retrieved on June 20, 2004 at http://ingrimayne.saintjoe.edu/econ/Keynes/Activism.html

Scheck, Robert. (1997) "Synthesis." Retrieved on June 20, 2004 at http://ingrimayne.saintjoe.edu/econ/optional/ISLM/Overview14ma.html

Their pricing is relatively high due to high product differentiation.

SWOT analysis

Strengths

The Body Ship has almost 2, 500 stores in 61 countries. Started in the late 1970s to appeal to a market that has been increasingly enamored with natural ingredients and products, this market has only grown whilst trends for holistic and organic items have, if not stayed constant, certainly increased. In this way, the Body Shop not only managed to carve a niche for itself when inclination for natural products was just beginning but it has gained a reputation and foothold in this field, that a rare few have been able to beat.

The Body Shop is a mature market and a long-established company having a niche in the field. It has high entry barriers making for tough competition and little opportunity for new entrants. Their key strength is, therefore, their name, experience, and image. They also…

An ageing population with motivation and the capacities to spend on premium-priced products that claim to possess natural anti-ageing properties is another factor that works in the store's favor.

Referneces

The Body Shop. (2009) Living our values. The Body Shop International PLC

Five Forces Model Analysis of the SmartPhone Market

The Five Forces Model (Porter, 2008) provides a useful framework for evaluating the dominant competitive forces that influence the size, direction and intensity of competition in a given industry. The Smartphone industry is analyzed in the Five Forces Analysis completed in this paper, and is shown in Figure 1.

Smartphone Five Forces Analysis

(Apple, Investor elations, 2012) (Bernoff, Li, 2008) (Lee, Kwak, Kim, Kim, 2009) (Porter, 2008)

What is immediately apparent from evaluating the role of Substitute Products, Bargaining Power of Suppliers, Bargaining Power of Buyers and New Market Entrants is the speed and breadth of innovation occurring in this industry. Social networking's pervasive adoption globally is also completely reordering the supply chain for smart phone components and assemblies, hastening product lifecycles in the process as well (Bernoff, Li, 2008). Apple's continual focus on innovation and the rapid product lifecycles they have…

References

Apple, Investor Relations (2012). Investor Relations. Retrieved January 13, 2012 from Apple Investor Relations and Filings with the SEC Web site:  http://www.apple.com/investor/ 

Josh Bernoff, Charlene Li. (2008). Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review, 49(3), 36-42.

Lee, B., Kwak, J., Kim, K., & Kim, S.. (2009). Technical innovation and 3.5 mobile phone generation: Lessons from Korea. Telecommunications Policy, 33(5/6), 296.

Michael E. Porter. (2008, January). THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY. Harvard Business Review: Special HBS Centennial Issue, 86(1), 78-93.

In addition to gaining a high percentage of the 15-29 segment as defined in the case study, there is the added strategy of being able to take more of the mainstream customers from cellular service providers with bad service, high prices, and complex programs to understand. Presented below are the specific assumptions that illustrate the financial viability of this strategy:

Pay-as-you-go is expected to be the fastest growing segment of cellular telephone service industry (SEC 2007) as defined by research firms the Yankee Group and Current Analysis. Included in this analysis by these research firms is significant churn from existing cellular telephone service providers, which is a strength of Virgin Mobile.

Cost of Goods Sold (COGS) is assumed to stay flat over the forecast period for both basic and deluxe service levels, further increasing profitability and the potential for increasing investment in capital equipment and service assets, including customer service…

The marketing mix has many variables that can be changed and adapted in every company, but in this process it is important to keep in mind the position the company wants on the market and its objectives.

The marketing mix planning is the process of developing long-term strategic plans that can help the company to achieve its goals. Each element in the marketing mix - product, price, promotion, and place -should be very well used in the attempt to satisfy the needs of consumers.

ibliography

Ford Parts (n.d.). Retrieved March 6, 2007 at http://www.innerauto.com/Ford_Parts/

FW15-MARKETING MIX (n.d.). Retrieved March 5, 2007, at http://www.freeworldacademy.com/newbizzadviser/fw15.htm

Marketing mix (n.d.). Retrieved March 5, 2007 at http://www.answers.com/topic/marketing-mix

Marketing mix (Price, Place, Promotion, Product) (n.d.). Retrieved March 5, 2007, at http://www.thetimes100.co.uk/theory/theory.php?tID=243

Overview (n.d.). Retrieved March 5, 2007, at http://www.ford.com/en/company/about/overview.htm

The marketing mix (n.d.). Retrieved March 5, 2007, at http://www.thetimes100.co.uk/theory/theory.php?tID=185

Volker Mike, MARKETING & 4Ps of MARKETING…

Bibliography

Ford Parts (n.d.). Retrieved March 6, 2007 at  http://www.innerauto.com/Ford_Parts/ 

FW15-MARKETING MIX (n.d.). Retrieved March 5, 2007, at http://www.freeworldacademy.com/newbizzadviser/fw15.htm

Marketing mix (n.d.). Retrieved March 5, 2007 at  http://www.answers.com/topic/marketing-mix 

Marketing mix (Price, Place, Promotion, Product) (n.d.). Retrieved March 5, 2007, at http://www.thetimes100.co.uk/theory/theory.php?tID=243

dynamic nature of the current business environment, identifying and implementing an efficient pricing strategy is one of the most critical decisions that an organization has to make when launching a new product. This was the case for Dropbox, Inc. back in 2007, when the founders, Drew Houston and Arash Ferdowsi, introduced their product in the market. According to Dropbox (2015) the idea for their business came about after Houston forgot to carry the US drive that would transfer files from one device to another. That, together with the fact that he constantly had to email himself files when he needed to work from more than one computer, necessitated the invention of a file hosting service that provided users with remote storage over the internet. However, the pricing strategy posed a problem particularly because consumers were not accustomed to cloud storage services and they could not figure out a way to…

Bibliography

Dropbox, Inc. 2015. About Us. [online]. Available at  https://www.dropbox.com  / [Accessed 21 April 2015].

Seufert, E.B., 2014. Freemium Economics: Leveraging Analytics and User Segmentation to Drive Revenue. Waltham, M: Elsevier, Inc.

Teixeira, T., and Watkins, E.A., 2014. Freemium Pricing at Dropbox. Harvard Business School Library. Available at  http://www.hbs.edu/faculty/Pages/item.aspx?num=45910  [Accessed 21 April 2015].

Non-Price Barriers to Entry

In the OEM business, ongoing contracts are a strong driver of future sales. Once Larson becomes the battery supplier for a company, it can build a strong relationship with that company. The result will be a non-price barrier to entry as smaller firms find it difficult to break the relationships that Larson forms with its customers. ithout those customers, there will be less room for growth and for market entry for smaller and newer competitors.

Product Differentiation Recommendations

Pursuing a differentiated strategy for Larson would require that the company actually be able to make the best batteries, which would require significant R&D investment. The company can certainly take steps to improve its branding, as that will not cost much compared with their total product expenditures. However, the best way for Larson to differentiate its batteries is through a cost leadership strategy. Larson's customers are price sensitive…

Works Cited:

McCain, R. (no date). Monopolistic competition. Drexel University. Retrieved May 10, 2010 from  http://faculty.lebow.drexel.edu/McCainR//top/Prin/txt/Imch/MC1.html 

QuickMBA, adapting Porter, M. (2007). Porter's five forces. QuickMBA.com. Retrieved May 10, 2010 from  http://www.quickmba.com/strategy/porter.shtml

When all of these factors are combined the high level of differentiation for this clock becomes apparent. There is no suitable demand curve to plot pricing optimization from, a common strategy in commoditized products and services (Ketzenberg, Zuidwijk, 2009) so the BabyWatch must be value-based priced as a result (Abele, Elliott, O'Hara, oegner, 2002). For parents who have an infant at home within the first six months schedules are completely redefined and sleep is at a premium. The value of a good nights' sleep and the ability to set predictable schedules for the care, feeding, changing, and attending to an infant is equivalent to the opportunity cost of lost sleep. Taking the salary of a professional who earns $60,000 a year for example a given week represents $1,153. The value of having a very productive start to their week is 20% of this or $230. For those professionals earning a…

References

John M. Abele, Brian R. Elliott, Ann A O'Hara, & Eric V Roegner. (2002). Fighting for your price. The McKinsey Quarterly,(4), 116-125.

Boyle, P., & Lathrop, E.. (2009). Are consumers' perceptions of price-quality relationships well calibrated? International Journal of Consumer Studies, 33(1), 58-63.

Caudillo-fuentes, L., & Li, Y.. (2010). Revenue management during times of recession. Journal of Revenue and Pricing Management: An Associated Publication of the INFORMS Revenue Management, 9(1-2), 185-188.

Ketzenberg, M., & Zuidwijk, R.. (2009). Optimal Pricing, Ordering, and Return Policies for Consumer Goods. Production and Operations Management, 18(3), 344-360.

Human esources

Job Evaluation, Market Pricing & Pay Structures

Job evaluation is a division of the salary management practice. It is a methodical examination of the relative demands that work places on a worker. Job evaluation results in a relative ranking of positions. This position, frequently expressed in terms of salary grades, is the foundation for the classification of salary ranges (Hilling, 2003). Market pricing is an organization of gathering data on the pay rates for comparable jobs in other companies to set up their market rate or price and track movements in those rates. The objective of the process is to help set the organization's own pay rates at the suitable level in order to employ and retain the personnel it desires (Graebner & Seaweard, 2004). While market pricing has forever been the foremost way that companies establish their pay levels, the lack of valuable survey data has been…

References

Dufetel, L. (1991). Job evaluation: Still at the frontier. (cover story). Compensation & Benefits Review, 23(4), 53.

Graebner, D.R., & Seaweard, K.A. (2004). Bringing it all inside: Job evaluation and market pricing at JCPenney. Workspan, 47(8), 30-30-35.

Hilling, F. (2003). Job evaluation is here to stay. World at Work Journal, 12(3), 14-21.

Job Evaluation: Understanding the Issues. (n.d.). Retreived from http://www.effectivecompensation.com/PDF/CareerPathJobEvaluation.pdf

control mechanism Wal-Mart: Price

Pricing controls -- Wal-Mart

Wal-Mart advertises itself as a company that provides the lowest prices, all of the time, in comparison to its generic and specialty-store competitors. It is able to deploy this low price model in a successful manner by selling at a high volume. It is also dependent upon cheaper and exploited labor in foreign nations, where many of its products are manufactured. For example, employees in China not only receive low wages but are "housed in dismal dormitories; they may choose to live elsewhere, but still have to pay the dorm rent. In Bangladesh…working hours are 8 a.m. To 10 p.m., seven days a week, for 13 to 17 cents an hour" (Gates 2011). By limiting the benefits of all of its employees, in the United States as well as abroad, and depending upon a relatively low-wage, part-time workforce, it is also able…

References

Gates, Anita. (2005, November 24). Review of Wal-Mart: The high cost of low price The New

York Times. Retrieved April 25, 2011 at  http://www.walmartmovie.com/reviews_nytimes.php 

Manners, Tim. (2005). Wal-Mart vs. Costco. Fast Company.

Retrieved April 25, 2011 at  http://www.fastcompany.com/blog/tim-manners/shop-talk/wal-mart-vs.-costco

AMZN

Key Partners

Thousands of partners

Work with thousands of direct suppliers

Work with thousands of third party vendors

Key shipping partner -- UPS and USPS

Payment partners -- the credit card companies, banks, PayPal

Has to partner with unions in Germany, much to the company's dismay

Key Activities

Amazon sells goods and sometimes services, mostly to consumers

It also provides a marketplace for third-party sellers

Amazon will offer sponsored search and other advertising products to retailers

All of its business is online

Warehousing and distribution are critical processes for the company

Shipping is done by third parties that pick up at the AMZN warehouse

Value Propositions

Large array of goods for sale adds value -- one-stop shopping

apid delivery

Free shipping if the order is large enough

Prime memberships

Best selection, ease of use are key value propositions

Make shopping easier, solves customer problems

Bundling products creates value for…

Moderate adherence

Quelle

http://www.quelle.com

Quelle is a company specialized in mail ordering. The company's website provides full information on the company's products and services, pricing, delivery and payment conditions. However, in my opinion, the main problem is the overall aspect of the website. The website is simply quite crowded. It is quite difficult for a new user to orient around the website and to find the items of interest to him.

Good adherence

Drive

http://www.drive.com.au/

Through this website, customers can purchase new or used cars, and bikes and scooters. The design is quite simple, the information is easy to access. The website is consistent in using design features and colors. All in all, this website is very easy to use for anyone.

egarding the issue of serious eCommerce websites that might be making mistakes, my opinion is that if an eCommerce website makes such errors, this is not a serious…

Reference List

Company history (2008). Quelle. Retrieved August 30, 2008 at http://www.quelle.com/en/unternehmen/sicherung_firmengeschichte/2005/.

IBM Products (2008). IBM United States. Retrieved August 31, 2008 at  http://www.ibm.com/products/us/en/ .

Altova Named to EContent's "Top 100 Digital Content Companies to Watch." Market Wire online. Retrieved August 31, 2008 at  http://findarticles.com/p/articles/mi_pwwi/is_200212/ai_mark02049773 .

Selling Digital Content Resource Center (2008). Deitel & Associates, Inc. Retrieved August 31, 2008 at  http://www.deitel.com/ResourceCenters/InternetBusiness/SellingDigitalContent/SellingDigitalContentCompanies/tabid/2428/Default.aspx .

Financial Analysis

Introduction ( a )

A real option is just that -- the option to do something, if a particular situation arises. The principle is the same as for a financial option. The difference is that real options pertain to physical things -- usually pieces of equipment, real estate or other such assets (Investopedia, 2015). An example of a real option would be when you sign a lease on a piece of equipment, with an option to buy after a year. If the equipment is scarce, that option might have value. Licensing arrangements can also contain real options in them as well. The key to the concept of the real option is that there is a value to such options, and the company should be aware of how to value real options.

Analyzing eal Options (b)

There are only really two methods for analyzing real options -- financial and…

References

Investopedia (2015). Definition of real option. Investopedia. Retrieved August 18, 2015 from  http://www.investopedia.com/ terms/r/realoption.asp

Sustainability in Pharmaceutical Pricing

How Can Pharmaceutical Public-Private Partnerships Help to Achieve the Dissemination of affordable medicines - The Case of Anti Malaria Drugs in Nigeria?

Sustainability Perspective

Many individuals from developing countries who could benefit from pharmaceuticals products do not receive them due to high costs. Antiretroviral therapy's failure in reaching more than scant numbers of individuals in developing nations, suffering from AIDS, has drawn extensive publicity. However, even far cheaper medications that can be delivered easily aren't reaching numerous individuals who require them. Over a fourth of children all over the world and more than half of the children in a few nations do not receive vaccines, which come under the World Health Organization's (WHO's) Expanded Program on Immunization. Even though these vaccines only cost a family under a dollar a dose, they still cannot afford the medicine. The lack of access to beneficial pharmaceutical products and the…

References

AUSPA 2012, Policy & Advocacy, Western Australian Council of Social Service Inc., viewed 10 June 2017,

Buckley, J & Seamus, T 2005, International Pricing and Distribution of Therapeutic Pharmaceuticals: An Ethical Minefield. Business Ethics, pp.127-141.

Hussein, A 2015, The Use of Triangulation in Social Sciences Research: Can Qualitative and Quantitative Methods Be Combined? Journal of Comparative Social Work, vol. 4., no.1.

Lampard, R & Pole, C 2015. Practical social investigation: qualitative and quantitative methods in social research. Routledge: Abingdon, UK.

Business Model

Examination of easyGroup's External Environment

Often, achieving competitive edge in an industry has less to do with a company's specialized set of resources, its innovative processes or its unique branding identity and has far more to do with its capacity to recognize needs in the market and find ways to satisfy them. Such is to say that where competitive edge is typically regarded as something attributable to the internal qualities of an organization, sometimes competitive edge may be devised simply by observing the market, identifying its biggest voids and filling these in a strategically sound matter. These externalities are most responsible for the competitive edge sought by easyGroup, purveyor of the no-frills, low-cost airline easyJet and aspiring purveyor of a business called easyCinema that would feature many of the same qualities applied in a different industry.

For easyGroup, the decision to create the business segment in question emerged…

Works Cited:

Doz, Y.L. (2003). Case 3-5: Extending the 'Easy' Business Model. INSEAD.

Leadership-Level Implementation of Strategic Plan

Good leadership is a key aspect of project management. Leading a project requires working with the manager and other staff drawn from the project's functional areas. It is not accurate to say that a leader only influences the subordinates under him. esponsibilities of a leader can go either vertically or horizontally. An effective leader will not only lead the subordinates under him or her, but also all the people involved in the project including those who are his seniors. A leadership model referred to as 3D model has been fronted by various players and promotes team leadership, self-leadership as well as teamwork that is leadership oriented. Effective leadership takes the ability to spot opportunities to improve a project and also execute on the project improvement. Besides the existing good personal traits, the style of leadership can be modeled through experience, training as well as dedication.…

References

Abou-Zeid, E.S. (2005). A culturally aware model of inter-organizational knowledge transfer. Knowledge management research & practice, 3(3), 146-155.

Ale Ebrahim, N., Ahmed, S., & Taha, Z. (2009). Virtual teams: a literature review. Australian Journal of Basic and Applied Sciences, 3(3), 2653-2669.

Bidgoli, H. (2013). MIS 3. Boston, Mass: Course Technology/Cengage Learning.

Caligiuri, P. (2006). Developing global leaders. Human Resource Management Review, 16(2), 219-228.

J

Illustrate the difficulties of establishing and managing a subsidiary in terms of strategic ethical considerations -- not only because of differences in corporate (organizational) cultures, but also in national cultures and laws.

The United States has some of the most restrictive laws regarding cigarette taxation, use of tobacco, and advertising. The government actively campaigns against tobacco use as part of its public health education efforts. Thus it behooves J to sell its product abroad in less restrictive contexts, effectively encouraging other people to risk their health smoking tobacco. Often such nations are located in the developing world and target people who have less education about the damage that tobacco can do to their health.

Q2. Explain in your own words why J prefers to work with a local partner to establish a joint venture rather than simply acquiring a company in another country.

Given that J has frequently embarked…

References

Brustein, J. (2015). Inside Radio Shack's slow-motion collapse. Bloomberg. Retrieved from:

 http://www.bloomberg.com/news/features/2015-02-02/inside-radioshack-s-slow-motion-collapse 

Hartley, R.F. (2005). Management mistakes and successes (8th ed.). Hoboken, NJ: John Wiley.

Rocco, M. (2015). These RadioShack stores will be closing. Retrieved from:

New Marketing Plan

Overview of Company

Dawn is a startup company that plans on making the most of the prospect that is the entrance into retirement age of the Baby Boomer generation. The company perceives this as a business opportunity to offer services to this population. In particular, the company will serve as a housing community that offers the product package or services to active seniors who have attained 55 years of age and above. This will encompass assisted living that could be partial or full-time, depending on the needs of the client. Dawn intends to not only offer these services, but also other amenities that will make life comfortable for the adult patients. The company plans on setting up its premises in Boston. The following is a marketing plan that is purposed on creating a profitable business model for the company.

Market esearch Strategies

The company will make use…

References

Ferrell, O. C., Hartline, M. (2014). Marketing Strategy. Ohio: South Western Cengage Learning.

Pride, W., Ferrell, O. C. (2010). Marketing. Ohio: South Western Cengage Learning.

Hanssens, D. M., Pauwels, K. H., Srinivasan, S., Vanhuele, M., & Yildirim, G. (2014). Consumer attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4), 534-550.

Henry, A. (2011). Understanding Strategic Management. New York: Oxford University Press.