Principles of Marketing (MGT301) |
Fall, 2022 Assignment No. 1
Prepared By: Imtiaz
Hussain
Course: Principles
of Marketing
Virtual University of Pakistan
Question:
A&C Leather Co. is
a leather manufacturing company. They manufacture all leather products
including leather jackets, caps, and pants. The geographical location of the
current target market of A&C leather co. has four seasons (winter, spring,
summer, and autumn). They sell more units of products in the winter season as
compared to other seasons
Q1: Which demand situation is faced by A&C
Leather Co? Justify your answer with valid arguments.
Answer:
Irregular demand is
when demand of company product changes at different times. It increases in some
season and decrease at some other time. It
is called irregular demand.
A&C Leather Co.
face the irregular demand because A&C Leather Co. made lather products and
the geographical location situation has four seasons which are faced by A&C
Leather Co. As per situation more units are sold in winter because sale of
lather products increase in winter but in out season there is no need for
winter products which shows a very low sale of winter products like sweeter and
hot caps and jackets because these products are sold more in winter but people
has no need for the products in other season like hot summer season. So the
situation falls in irregular demand where the demand increase in one season and
has no need in other.
Q2: Write down the marketing strategy to overcome
this demand situation. (5 marks)
Answer:
As per handout and
regular marketing strategy this situation can be deal by two methods.
1.
Demand shifting technique
2.
Synchro-marketing strategy
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1: Demand
shifting technique:
In this method the
company made all other type of products which are usable in other seasons like
jackets are made which are also usable in other seasons like rain safety
jackets and gloves are made which are usable in other seasons like fashionable
gloves and jackets. Also vase coat are made which are usable in winter and
summer in both seasons. In this strategy regular demand in being changes with
other products and company capture the market.
Example: A tea and
coffee making company has great sell in winter season because everybody like
tea and coffee but this demand decrease in summer but company can overcome this
sale decrease by producing more products like cold coffee and cold drinks, ice
creams which has also great use in summer seasons.
2: Synchro-marketing
strategy.
In this strategy
company introduce a lot of offers for to increase the sale of the products like
the sale on winter clothe and products increase in winter season but has no
demand in other season so company provide a lot of offers, like sale offers ,
discount offers. In this method company gave a suitable discount and people but
products because they get product at a low price and sale decrease can be
covered. Like a products has unit price 100 rupees in winter season and has no
sell in summer season and company gave 45% discount in summer and people just
buy items because they are 45 rupees cheap then regular price. And people but
them for future use.
Plan A:
Plan A: A Depositor deposit Rs. 30,000 at the end of every six month with the interest rate 18% per month with compounded semi-annually.
Solution: With the help of statement we use formula;
FV = PMT x [ ( 1+ i/m)n x m -1)] / (i / m) Where: i= interest
and n for duration and m for semi-annually which means 2 term in one year. Here
person deposit amount two time in a year so we will use m=2 and n=5 because
total time is 5 year.
FV = 30,000
x [ ( 1 + 18% / 2) 5 x 2 -1 ] / ( 18% / 2)
FV = 30,000 x [ ( 1 + 0.18 / 2 ) 10
-1 ] / ( 0.18 / 2)
FV = 30,000 x [ ( 1 + 0.09)10 – 1] / (0.09)
FV = 30,000 x [ (1.09)10 – 1 ] / 0.09
FV = 30,000 x [ 2.367 – 1 ] / 0.09
FV = 30000 x [( 1.367)] / 0.09
FV = 455787.89 Answer for 1st Plan
Plan B:
Deposit Rs. 20,000 at the end of every quarter with interest
rate of 18% compounded quarterly
FV = PMT x [ ( 1+ i/m)n x m -1)] / (i / m) Where: i= interest
and n for duration and m for quarterly which means 4 term in one year. Here
person deposit amount four time in a year (each after 3 month) so we will use
m=4 and n=5 because total time is 5 year.
Calculation:
FV = 20,000
x [ ( 1 + 18% / 4) 5 x 4 -1 ] / ( 18% / 4)
FV = 20,000 x [ ( 1 + 0.18 / 4 ) 20
-1 ] / ( 0.18 / 4)
FV = 20,000 x [ ( 1 + 0.045)20 – 1] / (0.045)
FV = 20,000 x [ (1.045)10 – 1 ] / 0.045
FV = 20,000 x [ 2.41171 – 1 ] / 0.045
FV = 20000 x [( 1.41171)] / 0.045
FV = 627,426.666 Answer for 2nd Plan
Question 2: Based on
calculations in part 1, suggest which option is not suitable for Mr. Arslan and
why?
Answer:
Based on the above calculation the plan B is perfect for Mr.
Arslan because there are two major benefits behind this one is that he have to
pay amount quarterly each after three month which is most easy payment method
for Mr. Arslan. And also in Plan B Mr. Arslan will received 627,426 rupees after 5 year while in plan A
he will get 455787.
So Plan A is not suitable because the amount he received is 455787
which do not fulfill the needs and demands of Mr. Arlsan. While the Plan B is suitable because Mr. Arslan
will received 627426 after 5 year which is perfect as per the
requirement of Mr. Arslan.
Solution 1:
Indirect Cash flow statement:
Necessary Calculations
Change
in trade debtor = 75000 – 30000 = 45000
Change
in inventory = 115000 – 102000 = 13000
Change
in A/C Payable = 19000 – 15000
= 4000
|
Cash
flow from operating activities |
Amount
(Rs.) |
|
Profit before tax |
250,000 |
|
Depreciation – related to operating expenses |
2000 |
|
Gain on disposal of machinery |
-25,000 |
|
Change in current assets
during year. |
|
|
Increase in trade debtor |
-45,000 |
|
Increase in inventory |
-13,000 |
|
Increase in accounts payable |
-4,000 |
|
Total Cash generate |
173,000 |
|
Income tax paid |
-10,000 |
|
Net profit |
163,000 |
Question No. 02
Is it possible to have positive operating income but negative net cash
flow from operating activities? If yes then state the reasons.
Answer:
Yes It is possible as
you can see in above statement that statement shows negative cash flow ( as
negative cash flow shows that company is getting lose and losing its money and
assets) but when the operating income in
positive which shows the increase in the assets of the company. When you have
negative cash flow your company state is critical and you can’t reinvest the
amount because you are losing the amount an assets and trust of people which
shows very bad condition for the company profile. But here you can see that
cash flow in negative but the total assets of the company increased and company
filing shows net profit of 163,000 rupees.
STRATEGIC
MANAGEMENT (MGT603) | Fall, 2022 Assignment No. 1
Prepared
By: Imtiaz Hussain
Course: Strategic
Management
Virtual
University of Pakistan
Answer:
Mission statement of Quaid-e-Azam University
1.
Who are the
firm's customers
Answer: As per the given instruction in point 4
students are the customer of the university and university is serving them.
2.
What are the
firm's major products or services?
Answer: Quaid-e-Azam University is
Functioning as a research oriented institution.
3.
Where does the
firm compete?
Answer: As per mission statement point four firm
is serving in every corner of the country. Or we can say that firm is serving
all over the country.
4.
Is the firm
technologically current?
Answer: There is no clue
about technology in the mission statement. But statement shows logical
knowledge base firm.
5.
Is the firm
committed to growth and financial soundness?
Answer: As per mission
statement of the firm is fostering highest moral and practiced values. But the
mission statement is not committed with any growth of financial soundness.
6.
What are the
basic beliefs, values, aspirations, and ethical priorities of the firm?
Answer: There is no fix statement of values,
aspiration in the statement but the statements shows the highest moral and
practiced values and promise to meet the needs of the society.
7.
What is the
firm's distinctive competence or major competitive advantage?
Answer: The form
distinctive advantage is to teach the students with logical knowledge and meet
the needs of the society.
8.
Is the firm
responsive to social, community, and environmental concerns?
Answer: Yes the form is
responsive to society needs as the last point shows that it helps the society
by creating the harmony between people and society.
9.
Are employees a
valuable asset of the firm?
Answer: Mission statement encourage and ensuring the
supporting faculty and staff members to continue their professional in the
form.
Mission
Statement of Islamia University Bahawalpur
Answer of the
questions:
1.
Customers: Who
are the firm's customers?
Answer: No clues available in the statement about the
customer about the University but logically only students are the customer of
the university.
2.
Products or
services: What are the firm's major products or services?
Answer: As per mission
statement the research and academic program are the product and services of the
university.
3.
Markets: Geographically, where does the firm
compete?
Answer: No information
available about this question in the statement.
4.
Technology: Is
the firm technologically current?
Answer:
Not mention about any technology in the mission statement.
5.
Is the firm committed to growth and financial
soundness?
Answer: No value of growth and finance is given in the
mission statement.
6.
What are the
basic beliefs, values, aspirations, and ethical priorities of the firm?
Answer: Only
services and community engagement activities related information is given
in mission statement
7.
What is the firm's distinctive competence or
major competitive advantage?
Answer: Yes by conducting top quality academic
and research programs, services and community engagement activities.
8.
Is the firm
responsive to social, community, and environmental concerns?
Answer: Yes by
conducting academic and research program and environment conducive to teaching,
research
9.
Are employees a
valuable asset of the firm
Answer: Yes employees
are valuable assets of the firm because they conduct academic and research
program and activities and community engagement activities.
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