Economics

The the following essay will explain  a scenario regarding San Juan Cell Phone Company which is manufacture of cell phones. San Juan Co. is located in Puerto Rico and has a strong background on selling and production the Alpha model that support the major chain for Maria Perez. Ms. Perez is one of the biggest sale person of the San Juan Co. with an order over 100,00  cell phone. Lisa Norman is the production manager, her and Ms. Perez will meet to engage in the best opportunity whether to accept an order for a product that requires displacing another product from production. This decision employs contribution analysis, opportunity cost, and cost concepts.

                         The San Juan Alpha model the variable cost is $8.00 each and sells by $20.00, the fixed overhead is $9.00 and the profits are $3.00. The San Juan Beta model at variable cost is $12.00 and sells by $30.00, the fixed overhead are $10.00 and the profits are $8.00. When the production is on the maximum top Alpha model could paid to Maria up to $15.00 and the Beta Model $14.00. This two type of sell differ from each on the features each has. Beta cell phones is more up to date that Alpha cell phones which end up  on raising the selling price of the Beta at a rate difference of a $10.00.

                        San Juan Cell Co. is a solid and has potential to manufacture sufficient cell phone in order to exceed client’s needs and demand. To succeed today is essential to have a strategic direction, a company must develop their potential to the maximum through strategic plans that will make a profit and survive for long in a large and increasingly competitive market. Technology is changing constantly and need to improved day by day.  Lisa Norman is brainstorming to be ensure how to proceed to meet the end-state goals the provided unlike major cities service is not good and in some cases inadequate, failing to ensure the our employees relation and safety are meet in full,  in order to be successful for our client expectations on time and exceed their expectations.

                The strategy defines the objectives selected price on the market. A penetration strategy proposed by entering a low price in pursuit of greater participation, or a strategy of skimming entering with a higher price intended to generate the maximum possible return, are clear examples of pricing strategy. Before that customers can see the products must have heard of them. To achieve this advertising is used to attract attention, inform, persuade, and inspire confidence. These are the objectives of the communication. Communication should explain the value of the goods or services and convince these products / services that best meet the needs of the competition.

                There are several ways to attract the attention of customers: Classic advertising: newspapers, magazines, radio, TV movie theaters, Direct Marketing: Direct mail to selected customers, telemarketing, Internet, public relations articles in newspapers about their products or services of, their business, written by you or journalists. Exhibitions, trade fairs and visits to customers. Communication is expensive, then it must make good. Calculate exactly how much advertising can be paid for sales, selecting the messages and means in accordance with these restrictions. It is recommended a focus of communications for best results.

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