Assignment Number 1
1. Economists agree that macroeconomic environment influence the performance of business firms. One major industry that has been adversely affected by the Great recession that began in late 2007 is the automobile industry. Big Drive Auto is an automobile dealing firm located in many states across the United States. This paper analyzes the strategies that Big Drive Auto has used to realize profits amidst the recession. In order to assess the market environment in the motor industry, Big Drive Auto sought the services of Alpha Team Consultants to review business data in the economy. Amongst the changes proposed by the team included changes that address price elasticity and competition in the economy. One of the changes included changing the price to accommodate an advantage in prices with other players in the industry. In the addition, the company needs to rebrand to sell unique products that distinct the company from other players (Allio, 2006).
2. Firms gain loyal customers by providing unique to the customers. Value is the most important aspect of successful marketing. Through a variety of sales and marketing strategies, Kudler Fine Foods plans to increase customer loyalty and profitability. The customer focused programs, frequent shopper program, direct mailing program, cost cutting initiatives and customer relationship and management tactics are designed to achieve quality results. Improving the customer’s value chain while instilling loyalty is hoped to increase higher margins in product sales. For Kudler Fine Foods to take full advantage of inherent opportunities, they will need to have impeccable customer service. Already, the company has developed the customer base through gourmet product availability and her involvement with the store. The company will have to establish strict customer service guidelines to improve satisfaction to the new higher volume of clients and the geographic expansion. Kudler Fine Foods has a niche in the food industry that requires careful consistent monitoring for it to succeed (Becerra-Fernandez, Gonzalez, & Sabherwal, 2004).
3. Plethora of reasons weighs for a company’s choice of location and to a large extends operation. While many of these factors such as the presence of resources, capabilities, and knowledge are internally driven, other factors, however, arise outside of the entity. In international business, these aspects are classified into five broad categories: political, economic, social, technological, and competitive forces. The American technological industry is not an exception to this rule. Zebra Technology Corporation is a leading globally oriented technological company located in the United States. The Company possesses a large market share technological software and hardware solutions globally. Zebra’s entry into the Russian market is new challenge that the company must find a new strategy to mitigate. Standardization of Zebra’s products to meet the Russian market demand will be a key part of the marketing plan. An aspiring company must make a decision where the company can attain competitive advantage over other corporations in the country that they want to explore. The company must have an edge over its rivals in terms of technology, distribution system, market base, and efficiency. Companies must have efficient organization skills and distribution skills to realize competitive advantage (Boone, 2011).
4. Companies are now using different methods to ensure that they stay afloat of the competition and maximize their profits. Macroeconomic environment has become an instrumental tool that companies use to save cost of operating at minimal cost. Pricing is decisive to the company’s achievement. Realizing a considerably improved price overall across all transactions has a remarkable impact on the profit margins. As such, improving, prices and thwarting price erosion in dealings or contracts should be chief for a company in search of progress in its profits. Pricing can be a complicated case if the contract involves a diverse in a country with different earning power (Sodh & Navdeep, 2008).
Assignment 2
The Postal Service
The U.S Postal Service is facing hard times due to effects of the economic recession, the increase of competitors because of the advent of electronic communications and the ever-increasing retiree benefits. Although the company is still dedicated providing reliable affordable healthcare, the effects of macroeconomic environment has taken a toll on the company. In order to revamp back to competitiveness, I have advocated for cost reducing ventures that will ensure that profit making is realized overtime. First, recommendation is an adoption of a flexible model that meets the needs of the 21st century. Included in this new method is increasing delivery frequency from the usual 3-5 days to an even faster delivery of 2 days maximum. The company must also employ flexible work force that that can adjust to changes in the market situation. In addition, there is a need to adjust pricing to reflect the changes in the competition. Moreover, the company can also embark on a strategy that markets the timelessness of letter writing and the romantic ideals of receiving letters (Hooley, 2008).
References
Allio, M. (2006). Metrics that matter: seven guidelines for better performance measurement. Handbook of Business Strategy, 7(1), 255 – 263
Boone, L. E. (2011). Contemporary business. Hoboken, NJ: Wiley.
Becerra-Fernandez, Gonzalez, & Sabherwal. (2004). Knowledge management: Challenges, solutions, and technologies. Upper Saddle River, NJ: Prentice Hall.
Hooley, G. (2008). Marketing Strategy and Competitive Positioning. New Jersey: Prentice hall.
Kotler, P. & Keller, K. (2006).Marketing Management, 12thed. New York: Pearson PrenticeHall.
