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Changing environment factor, and Pricing Strategies - Essay Example

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The government has put in place a series of regulatory measures to control and monitor trade and commerce. These certainly influence and determine the choice in organisational approach and…
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Changing environment factor, and Pricing Strategies
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"Changing environment factor, and Pricing Strategies"

Download file to see previous pages Undeniably the muffin market in the United States has its share of competitors and Wholesome Muffins will not entirely be entering a new market. Subsequently since the objective is profit maximisation it would be better for Wholesome Muffins to establish a position above the other competitors. To achieve this, the firm will require licence permission to operate as a subsidiary. This also implies that the subsidiary will be registered and licensed under the limited liability option as well as the franchisee alternative. This has a great role in ensuring that the marketing production and growth strategy maintains a direct channel approach (Berry, 2008).
Despite the identified influence of the legal entities in the chosen type of organisation, it also presents certain risks. To begin with it would be impractical to establish a place of business in the country if the government fails to cooperate and offer assistance. This could occur through unfriendly policies and standards that will lead to extra expense and cost. If the firm does not also receive political input it will not have the relevant market statistics. This means that it will fail in making the customers preference and taste (Kerin, Hartely, Berkowitz & Redelius, 2006). The lack of cooperation from the government also puts the company at the risk of intellectual property insecurity. Subsequently it will fall behind the competitors increasing its operational management and marketing costs.
The United States’ food market was hardly hit by the recent economic crisis that drove the interest rates on goods and legal tender sky high slowly eliminating the unstable and inefficient companies. The remaining companies were forced to diversify to break even. Subsequently the competition for Wholesome Muffins comprises companies that have fresh muffins as just one among their products. However, the competition still exists, and it poses great risks to the firm’s performance. However, ...Download file to see next pagesRead More
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