Running head: FROM THE MIND OF WILL BURY
From the Mind of Will Bury
University of Phoenix
From the Mind of Will Bury
Electronic technology has grown by leaps and bounds and the impact on the market is ever-changing. The pulse of perfecting, condensing, and accessing information is the key to being competitive in the electronic industry. The Internet can bring another country??™s product within reach in a matter of minutes by downloading the information. The concept of instant gratification appears to be the norm. The purpose of my paper is to discuss the Will Bury??™s price elasticity scenario by providing recommendations for increasing revenue for the company, achieve ideal production levels, determine how fixed and variable costs should be adjusted to maximize profit, identify methods to reduce costs as it relates to economic concepts.
Increasing Revenue for the Company
I am a firm believer that a business person has to spend money to make money. Mr. Bury needs to increase his advertising budget. He needs place advertising in bookstores, libraries, stores, and the post office. Mr. Bury needs to research in making commercials, flyers, and business cards. He also needs to raise the price of his items and he can also offer a discount when the items are sold in bundles. He could raise his prices to $25 for title with royalty fee and $15 for copyright that has lapsed. He could focus on the best sellers list for cataloging purposes. He can also branch out to book-clubs. He could also sponsor a reading program in a local school. I would recommend promoting community involvement so that business can expand and grow.
When a consumer makes a purchase, I would recommend a five dollar discount when two items are purchased. He can also offer a seven dollar discount when three are purchased. The last bundle deals should be a $10 discount when three items are purchased. I would also recommend that he has a discount for initial and returning customers. I would recommend a three percent off the total purchase price for initial customers and a five percent off of the total purchase price for returning customers. Mr. Bury will keep a database of all of his consumers so that periodically he or an employee would send a coupon for 10% off of a purchase when the consumer has not made a purchase in three months. The ideal concept will be to keep consumers shopping in the organization??™s internet-based catalog.
Achieve Ideal Production Levels
The most effective manager knows his limitations. Mr. Bury needs to hire staff to assist him the production of his product. I am not an advocate for employment oversees. I think that employment should be given to Americans. I like to view the bigger picture of providing stability to our economy and giving back to the community. I would recommend employment to college students or provide an internship to college students. I think that college student would have a flexible schedule and would appreciate the opportunity to gain experience. A college student would be more in sync with today??™s technology. I do not think that a college student would be intimidated by the production process. The position would be part-time and I recommend with starting off with at least three employees. The employees would be allowed to make their own schedule and they would be paid every two weeks. Mr. Bury also needs to research a firm to keep his payroll information. The firm would take out the appropriate taxes, perform direct deposit, and disperse W-2.
Fixed and Variable costs
A fixed cost for Mr. Bury is the royalty fee for copyrighted books. The copyrighted books appear to be the best seller of the products that he has. As I previously have suggested, Mr. Bury needs to raise the price of the copyrighted materials to receive a greater profit margin. Another fixed cost for his organization would be the utility. However, the organization would be a part of his home office so there would no overhead cost. He may need additional digitizers because of hiring employees. I would view his equipment as an expense that would promote the longevity of the organization. An employee??™s salary could be viewed as a variable cost. The rate of production and the hours that employee worked would vary. I would recommend a quarterly bonus to the employees to keep the students motivated to provide quality production.
Identify Methods to Reduce Cost
The desire for growth and the demand for reducing cost is a two edge sword. An effective manager will reflect on the long-term and short-term goals of the organization to decide on how to reduce cost. An organization must reduce cost to increase the profit margin. My recommendation to outsource payroll will reduce cost for the organization. The company is small so a HR position would not be necessary for the organization. Based on the longevity of the organization, employment oversees may also be an option at a later date.
Mr. Bury??™s organization will be consumer friendly and provide opportunities for college students to gain knowledge and experience. Mr. Bury??™s organization will provide a culture of growth, excitement, and stability. All employees will be evaluated and given incentives that they want to receive. The employees will have a voice in the management of the organization. Mr. Bury??™s organization will be the ideal at home business that will provide a service that consumers are in need of. The niche of the organization will be to provide the service for consumers and to make sure consumers return. Mr. Bury??™s organization will show how to be a small business owner that provides service in the United States and employ in the United States.
In conclusion, the scenario for Will Bury will be essential is my dilemma to become self-employed or employ others for the organization that I want to form. In the current economy of recession, I would not recommend that Will Bury leave his employment at High Tech Digital Industries. His employment provides benefits and a salary for his family financial needs. It is imperative to make a thorough decision for the long-term benefits for the organization. The organization has to have a business strategy to ensure that the organization will remain competitive in the industry. Being self-employed in today??™s economy is very risky; a business owner needs to weigh all options. A decision made today can affect an owner of a business for a long period of time.
University of Phoenix. Will Bury??™s Price Elasticity Scenario [Computer Software]. Retrieved
from University of Phoenix, Simulation, ECO561- Economics website.