Three years ago, Vincent Chow completed his degree in accounting. The economy was in a depressed state at the time, and Vincent managed to get an offer of only $20,000 per year as a bookkeeper. In addition to its relatively low pay, this job had limited advancement potential. Since Vincent was an enterprising and ambitious young man, he declined this offer and started a business of his own. He was convinced that because of changing lifestyles, a drive-through coffee establishment would be profitable. He was able to obtain backing from his parents to open such an establishment close to the industrial park area in town. Vincent named his business The Cappuccino Express and decided to sell only two type types of coffee; cappuccino and decaffeinated. As Vincent had expected, the Cappuccino Express was very well received. Within three years, Vincent had added another outlet north of town. He left the day-to-day management of each site to a manager and focused his own attention on overseeing the entire enterprise. He also hired an assistant to do the record keeping and to perform selected other shores.Required:

a. What is the competitive strategy of Vincent’s business – cost leadership, differentiation, or focus?
b. What are the critical success factors of The Cappuccino Express? Which of these are controllable by Vincent?
c. What major tasks does Vincent have to undertake in managing The Cappuccino Express?

Answers

Answer 1
Answer:

Answer:

Prerequisite 1  

There are three nonexclusive serious techniques:  

Cost Leadership - target showcase exceptionally broad, point is to have the most minimal cost. Items not specific, attempt to speak to shoppers because of their low costs.  

Separation - items or administrations gave elite highlights that clients need, commonly an increasingly devoted specialty. Ready to charge more significant expenses because of these additional highlights.  

Center Strategy - either a cost authority or a separation methodology, yet focused for a tight, engaged market.  

Vincent's business utilizes a Focus Strategy. The Cappuccino Express was made with the conviction that because of individuals' evolving schedules, comfort would be vital – giving speedy and advantageous espresso to occupied individuals.  

Prerequisite 2  

Basic Success Factors are the vital money related and non-monetary proportions of achievement. To be increasingly explicit Critical Success Factors are features of the association's exhibition that are essential to its upper hand.  

The Cappuccino Express Critical Success Factors :  

Quality and cost of existing items  

Areas specific..near Malls , schools , workplaces and so forth.  

Devise new items at customary interims  

Client Turnover – capacity to keep lines short, vehicles traveling through line  

Keeping Loyal clients with quality items along these lines diminishing ad costs  

Giving incredible client support  

Improving Profitability  

The greater part of these Vincent will have the option to show some power about whether it is adjusting costs, items, guiding various areas or making preparing programs. Then again, if Vincent's essential supposition never again remains constant, regardless of what he does he will most likely be unable to equal the initial investment, not to mention turn a benefit.  

Prerequisite 2  

Vincent needs to leave on numerous assignments in dealing with The Cappuccino Express. To start with, Vincent must blueprint a statement of purpose, objectives, and destinations. As supervisor, Vincent must do statistical surveying. He should get some answers concerning his rivals, clients, and the economy. Additionally, he should utilize a workforce and train them. He should isolate the expenses into assembling costs (direct materials, direct work, and assembling overhead) and non producing costs (selling and managerial expenses). This will take into account monetary observing and precise gauges of benefits, stock, and expenses. Vincent ought to assess both of his areas and conclude whether to remain in business or grow. Additionally, Vincent ought to evaluate his item contributions, administrations, and quality. He can choose which sorts of publicizing (advancements and limits) to offer.


Related Questions

Reid Company's balance in prepaid insurance at the beginning and end of the year was $1,000 and $1,200, respectively. This will be reported on the statement of cash flows using the indirect method as: Click the answer you think is right. a decrease of $200 which will be added to net income an increase of $200 which will be subtracted from net income an increase of $200 which will be added to net income a decrease of $200 which will be subtracted from net income Read about this Do you know the answer? Think so No idea I know it Unsure
In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $13,000. During the month, $283,000 of costs were added to production. In the department's cost reconciliation report for August, the total cost to be accounted for would be:
According to the modern view of the Phillips curve, expansionary macroeconomic policy that leads to inflation will reduce unemploymenta. only if people underestimate the inflationary side effects of the policy.b. only if people overestimate the inflationary side effects of the policy.c. if people accurately anticipate the inflationary side effects of the policy.d. only if monetary policy provides the macroeconomic stimulus.
Nancy is considering whether her toy manufacturing business should develop its own brand. Which is a company reward Nancy can expect from branding?
Maria Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Maria realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. All of the following questions are relevant to Mari's decision to fill top positions at the new hotels with internal candidates EXCEPT::_______a. What are the key managerial positions that are available at the new hotels?b. What percentage of employers in the service industry use succession planning?c. What skills, education, and training have been provided to potential candidates?d. What is the designated procedure for assessing and selecting potential candidates?

Constant cost industries: a. use large portions of the total supply of specialized resources.
b. significantly increase the demand for inputs when expanding output, and as a result, input prices rise
c. do not use inputs in sufficient quantities that a change in industry output would affect the prices of the inputs.
d. are those in which the cost curves of individual firms shift upwards as industry output expands.

Answers

Answer:

The correct answer to the following question will be Option C.

Explanation:

  • Constant cost industries seem to be a sector wherein the proportion of units produced as well as manufacturing costs every unit maintains the very same irrespective including its amount of manufacturing or rise in population. Which doesn't use input data in the appropriate amount to influence the rates of that same components by a shift in industry revenue.
  • This doesn't even use inputs in such amounts that perhaps the costs of that same inputs will be influenced by a change in business production.

The other choices are not linked to an industry of this kind. Therefore the clarification above is correct.

An import restriction (tariff or quota) creates a net loss in welfare for the importing nation because:___________ a. Domestic production rises in the importing country
b. Income is transferred from consumers in the importing nation to domestic producers
c. Income is transferred from consumers in the importing nation to their government
d. All of the above
e. None of the above

Answers

Answer:

Explanation:

An import restriction as the term implies is done to limit the amount of a certain good that is imported into the country. Usually this is done to protect the domestic producers of the good in question who are not be as efficient as the country being imported from and so charge higher prices.

The people in the economy will experience a net loss in welfare because they will now be paying higher prices and as well will be transferring some of their income to their government because import restrictions like tariffs will see their costs passed on to the consumer.

The Nature Conservancy is one tool that consumers can use to put their money where their mouth is, but it's not the only one. Internet technology is helping large groups of consumers raise money for causes they support. In this case, Internet technology makes it _____________ that the economic pie will be maximized.

Answers

Answer:

The Nature Conservancy is one tool that consumers can use to put their money where their mouth is, but it's not the only one. Internet technology is helping large groups of consumers raise money for causes they support. In this case, Internet technology makes it ____possible_________ that the economic pie will be maximized.

Explanation:

The Nature Conservancy is the management of land and water resources to ensure their conservation.  With internet technology, consumer groups can actually raise money to ensure the objectives of the Nature Conservancy are achieved.  In this case, Internet Technology is an enabler of Nature Conservation.  IT has also enabled many other causes, including Gun Control and Rights Activities.

Compute the missing amounts. ​(Enter the contribution margin ratio to nearest​ percent, X%.)A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit 80 1,000 2,088
Total fixed costs 73,200 660,000 3,758,400
Target profit 266,760 3,000,000 3,132,000
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to break even
Required sales dollars to break even
Required units to achieve target profit

Answers

Answer:

Contribution margin per unit

A =  $120

B =    $3,000

C =  $3,132

Contribution margin ratio

A = 60%

B =   75%

C = 60%

Units to break even

A =  610 units

B =    220 units

C = 1,200 units

Sales dollars to break even

A = $122,000

B =   $880,000

C = $6,264,000

Units to achieve target profit

A = 2,833 units

B = 1220 units

C = 2,200 units

Explanation:

Contribution margin per unit

Contribution margin = Sales - Variable Costs

                                               A              B                 C

Sales price per unit           $200      $4,000        $5,220

Variable costs per unit      ($80)     ($1,000)      ($2,088)

Contribution Margin          $120      $3,000         $3,132

Contribution margin ratio

Contribution margin ratio = Contribution / Sales × 100

A = $120 / $200 × 100

   = 60%

B =   $3,000  / $4,000 × 100

   = 75%

C = $3,132 / $5,220 × 100

   = 60%

Units to break even

Units to break even = Fixed Cost ÷ Contribution margin per unit

A = $73,200 ÷  $120

   = 610 units

B =   $660,000  ÷   $3,000

   = 220 units

C = $3,758,400 ÷   $3,132

   = 1,200 units

Sales dollars to break even

Units to break even = Fixed Cost ÷ Contribution margin ratio

A = $73,200 ÷  60%

   = $122,000

B =   $660,000  ÷   75%

   = $880,000

C = $3,758,400 ÷   60%

   = $6,264,000

Units to achieve target profit

Units to achieve target profit = Fixed Cost + Target Profit ÷ Contribution margin per unit

A = $73,200 + 266,760 ÷  $120

   = 2,833 units

B =   $660,000 + 3,000,000  ÷   $3,000

   = 1220 units

C = $3,758,400 + 3,132,000 ÷   $3,132

   = 2,200 units

A problem in using the judgment by market structure criterion is that: O it is the most subjective standard.
O it is difficult to determine the relevant industry and geographic market.
O it is an expensive and time-consuming standard.
O each action of a firm must be analyzed separately and within a particular context.

Answers

Answer:

The problem faced while using the judgement by the market structure criteria is that it is difficult for determining the geographic market and the relevant industry.

Explanation:

Market structures criteria are the kind or type of goods and services being traded, the size as well as the numbers of the consumers and the producers in the market and the degree to which the information could flow freely.

So, the problem which can be faced while using the judgement by the market structure criteria is that it is difficult for determining the geographic market and the relevant industry.

Jean Michaud pays his two employees $900 and $1,200 per week. Assume a state unemployment tax rate of 5.7% and a federal unemployment tax rate of 0.6%. What state and federal unemployment taxes will Jean pay at the end of quarter 1 and quarter 2

Answers

Answer:

The quarter has 3 months so all 15 weeks shall have following taxes:

Employee Wages Exempt under FUTA or SUTA

Employee 1  

Wages = 15 week x 900 = 13.500  

Exempt under FUTA or SUTA = 13,500 - 7,000 = 6.500

Employee 2  

Wages = 15 week x 1200 = 18.000  

Exempt under FUTA or SUTA = 18.000 - 7,000= 11000

From the above table.

The JM pays employee 1: 900 and employee 2: 1,200. For 15 weeks they were paid,

Employee I is paid, 900 x 15 weeks

= 13,500

Employee 2 is paid, 1200 x 15 weeks

= I 8,000

For employee 1,

= 13,500 - 7,000

Here, SUTA tax is 5.4% on the first 7,000 the employer pays an employee = 6500

For employee 2,

=18,000 - 7000

Here, the SUTA tax is 5.4% on the first 7000 the employer pays an employee =11000

The taxable wages are obtained by deducting.

= (13,500 +18000) - (6,500 +11,000)  

= 31500 - 17500

= 14000

The SUTA and FUTA taxes that JM pays at the end of quarter 1 and 2 is, SUTA,

0.057 x 14,000 = $798

FUTA.

0.008 x 14000

= $112

Hence. The SUTA and FUTA taxes paid are $798 and $112 respectively.

Final answer:

Jean Michaud will pay a state unemployment tax of $1,556.10 and a federal unemployment tax of $163.80 per quarter for his two employees.

Explanation:

The question pertains to calculating the unemployment taxes that Jean Michaud will have to pay for his two employees at a state rate of 5.7% and federal rate of 0.6%. Firstly, we calculate the total wages paid to both employees per quarter. One quarter comprises 13 weeks, therefore the total wages paid per quarter would be ($900+$1200) * 13 = $27,300.

Next, we calculate the unemployment taxes. The state unemployment tax would be $27,300 * 5.7% = $1,556.10 and the federal unemployment tax would be $27,300 * 0.6% = $163.80.

Therefore, the state and federal unemployment taxes Jean will pay at the end of quarters 1 and 2 are respectively $1,556.10 and $163.80. Note, these calculations assume that these are the only two employees and their wages are constant throughout these quarters.

Learn more about Unemployment Taxes here:

brainly.com/question/29853561

#SPJ3