Resource:
Final Business Proposal
Update
your Week Four business proposal recommendations. THEN
Add...

Question

Resource:
Final Business Proposal
Update
your Week Four business proposal recommendations. THEN
Add the
following numbered components to your proposal.

This is an ECONOMICS Course, the entire answers will
be on economics.
From #1 to #7 MUST have section heading for each answer as in
order. Show at least three references to support your paper.

1). Recommend
appropriate pricing and nonpricing strategies for your new or existing good or
service based on the projected economy’s stage in the business cycle and the
prevailing projected economic conditions for one or more macroeconomic factors.
Explain the evidence that supports these recommendations.

2). Describe
planning or operating decisions for your new or existing good or service based
on the economy’s stage in the business cycle and other economic conditions.

3). Recommend
an appropriate course for your new or existing good or service based on the
projected credit markets.

4). Describe
how current credit market conditions affect your planning or operating decision
for your good or service.

5). Recommend
business decisions based on estimates of evolving international economic
conditions. Be sure to relate decisions to international trade and comparative
advantage.

6). Describe
how the international economy affects your planning or operating decisions for
the good or service.

7).Make any
additional recommendations you think are important based on evolving economic
conditions.

Must have conclusions and references.

Robert · Accepted Answer

Spring Water
 
Spring Water 
Pricing Strategies
[Type the author name] 
[Pick the date]
Spring Water Strategies  2
Introduction 
The paper analyzes the pricing and operating strategies of Spring Water. The company 
operates in a monopoly market which makes me a price maker. The paper based on the economic 
theories and current global economic environment discussed various planning and operating 
decisions to be taken.  
Pricing and Non Pricing Strategies 
The company could either use cost plus pricing strategy or differential pricing strategy. 
According to the economic theory of profit maximization, Cost plus pricing strategy appears to 
be inconsistent in such situation (Calomiris, 1989). The analyses that are based on the marginal 
cost equals the marginal revenue decision rule might appear to have become highly irrelevant in 
the wake of the wide use of cost-plus pricing. However, the Cost plus pricing strategy will give 
the advantage of earning more profits as the Spring Water is innovative product in the market. 
But the major issue with this strategy is that the product is still at the nascent stage of the launch 
and it still needs acceptance from the industry.  
High pricing of the product based on cost plus strategy might not give the disadvantage 
creating a doubt amount the customers for switching costs. Also, the cost plus pricing strategy is 
based on the average costs and not on the marginal costs and can be highly inconsistent with the 
profit maximization (Calomiris, 1989). As a monopoly I am a price maker, who can either 
choose the price at which he wants to sell, allowing the consumers to decide the amount they 
would like to buy at this price. So for eradicating this dilemma it is highly recommended that the 
company should use differential pricing strategy. This will hold company gain early orders as the 
Spring Water Strategies  3
pricing of the product will be based on the differentiation value analysis of the product. It will 
also help the company in building relationships and negotiating with its distributors.

Resource : Final Business Proposal Update your Week Four business proposal recommendations. THEN Add the following numbered components to your proposal. This is an ECONOMICS Course, the entire answers...

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