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Hypothetical Company and Industry - Term Paper Example

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This term paper stresses that the automated robotic chef is a product in the technology industry designed to help busy families be able to enjoy a family together again.  The chef itself is fully automated and preprogrammed to cook a fresh meal at a predetermined time.  …
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Hypothetical Company and Industry
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Hypothetical Company and Industry

Download file to see previous pages... The rent on the building for this business stands at $18,000 per month. While that figure might seem quite high, it is actually quite low given that rent is 3-4 times that in the downtown area. Because the manufacturing center needs no showroom, there is no reason to have it located in a high traffic area. Other fixed costs include the monthly payment on machinery at $8,000 total per month and labor at $12,000 per month
Depending on the volume of demand for the product, there are certain costs that are variable and fluctuate from the month. As such, it is certainly quite difficult to put a dollar figure on such variable costs. These expenses include supply costs, utilities (based upon how many units are being produced determines electricity usage, for example), and transportation and delivery costs.
This product is best marketed to household consumers. The business itself is catered to families with children or working professionals. By focusing on the domestic market, the business can tailor its marketing plan to reach the very people that the product is designed for. The automated robotic chef is for people who desire to eat a healthy nutritious meal at home, but the demands of their lifestyle preclude this from easily happening. By focusing on these specific individuals, the business can better capitalize on market potential.
By its definition, this business will not form a monopoly. While the product design will certainly be proprietary in nature and will be patented, there is nothing to preclude competitors from developing their own version of the product. The possibility does exist, however, to reach distributorship agreements with various household department stores to make this product the only automated chef that they offer. ...Download file to see next pagesRead More
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