Essays on Pricing

Introduction Harry Markowitz pioneered the Modern Portfolio theory. For the first time in history he gave to the investors a formula through which they could invest in assets and maximize their profits at lower risk. The most significant and path breaking proposal that he gave was that of diversification of the portfolio to increase profits…

Does Burt’s Bees’ pricing strategy truly differentiate it form the competition? (Armstrong & Kolter, 2013) Burt’s Bees’ pricing strategy does differentiate themselves from the competition. With them using 99% majority of natural resources, that sets them away from the competition already. (Armstrong & Kolter, 2013) But with the high pricing marketing strategy they propose, it…

Discuss the pros and cons of implementing a nationwide road pricing scheme The introduction of a nationwide road pricing scheme has been extensively considered in the UK. Early deliberations in the ‘Smeed Report’ implemented road pricing in 1962 using a colour coding system. With computing and telecommunications changes in recent years there is potential for…

As functions specialize, skills and abilities improve, and the core competences that given an organization a competitive advantage emerge. A many organizes jobs into functional areas to offer consumers high-quality products at reasonable prices. There are some advantages of a Functional Structure: * People with common skills share information for problem solving or accomplishing a…

Introduction The cost of congestion was regarded by the late Professor William Vickrey to be high. Very roughly, the real economic cost of the transport infrastructure in the US was about three times the total gasoline and vehicular taxes generated by automobile use of city streets (Vickrey, 1963). Yet motorists were always under the misimpression…

Monetary value of a merchandise is a major component of the selling mix. Pricing is one of the most of import strategic issue because it is related to the merchandise placement. The monetary value goes in manus with the other selling mix elements such as merchandise publicity, channel determinations and its characteristics. For a developing…

Zauner Ornaments Costing & Pricing Introduction Zauner Ornaments was a large manufacturer of crystal and glass products based in Vienna Austria. The company had an international reputation of producing high quality glass and crystal at affordable prices due to the skill of its master artisan and using innovative technology in the manufacturing process. Its product…

Introduction: An option gives its holder the right (but not the obligation) to buy or sell a specific quantity of a specific asset at a fixed price on or before a specified future date. An option is purchased by the option holder and is sold by the option writer. A call option gives its holder…

Low prices are central to Ikea’s strategy, enabling it to reach a very broad consumer base and to remain robust in the face of extremely challenging economic conditions, even attracting new consumers who may previously have been put off by its mass-market image. However, rising raw material and transport costs forced the company to raise…

            In the business world of economic manufacturing and production, there are actually several ways and approach for one business entity to recovery their production expenses and realize profit. In this aspect, the production output is primarily the key factor in the profit generation of the business as their output serves as their revenue. In…