ACCT6365 Governmental and Not For Profit Accounting: Discounting Strategy
1875 word assignment This week, you will focus on the revenue projections and add to your business plan by creating a price list, incorporating a discounting strategy, and then preparing a break-even analysis. By creating revenue projections at this stage of the business plan immediately after creating cost projections at the prior stage of the business plan, you can determine whether your revenues will exceed your costs and thus produce a profit.
To begin, review the project content for your business plan that you submitted in previous weeks. Revise the plan to reflect the new information that you are learning this week, as well as any Instructor feedback you may have received, and then prepare (and add to your content) the following items: a Price List that is based on a specific pricing strategy, accompanied by at least two alternative Price Lists that are based on other specific pricing strategies that may be adopted under specified circumstances, a Discount list that is based on a specific discounting strategy, accompanied by at least two alternative .
Discount Lists that are based on other specific pricing strategies that may be adopted under specified circumstances, a Break-Even analysis that evaluates the likelihood that the organization will be able to break even financially, given the pricing and discounting strategies. You must submit your work as a Microsoft Word document, single-spaced, with 12-point Times New Roman font and 1” margins. Your submission must be at least 1,875 words, excluding illustrations.
The primary mission of the business is to create value for its users by providing them with best possible products from caffeine. They business focuses on creating outstanding quality of foods and beverages for its customers.Competition and market entry are the most significant strategic implication that the business faces since it will operate in United States where various competitors already captured the market (Saura, Palos-Sanchez & Grilo, 2019).
Coffee is an energy booster and consumers from different price segment are supporting the business opening since it aims to provide food and beverages for every segment.The business must evaluate key performance indicators such as revenue, employee management, performance, customer service to understand its overall performance.
Since the business is new, there will be a threat of substitute products, pressures from competitors as well as poor customer retention however, the firm has the opportunity to capture USA customers by providing them good quality products at low price. Four types of capital or development factors exist: Natural services (land) Work (human capital) capital resources (machinery, factories, equipment)
Business activities of the firm includes production and distribution of caffein and its associated products to the stores. In addition, the firm will also focus on delivering its products to its customers efficiently.There is primarily coffee, espresso, Chai, Hot Chocolate as well as other syrups of different flavours.
The sustainability of the company relies on the ability to secure top positions, to transport shop traffic and to provide goods of high quality (Bortolini et.al., 2018). By selling specific goods, targeting a particular market, or delivering personal customer support, the company can perform successfully.Lending from JPMorgan Chase and Co will be taken for the funding of the business. Caffein, plastics, packets are the primary items that the business will purchase from the manufacturer.The firm will purchase trademark and patent as an intellectual property for the business.
HR manager will be recruited to employ executives and other employees for the business.The business will collaborate with Starbucks in order to thrive in the USA food and beverage industry.The business will focus on company culture, respect and sustainability as internal factors as well as will focus on economy and competition as a part of external factors.