sales; 1,350,000lbs whose probability is 0.1, 1,650,000lbs whose probability is 0.6 and 2,250,000lbs whose probability is 0.3. Among three cases, the accountants use 1,650,000lbs, which is the “most likely” sales projection and has the highest probability, to calculate the estimate of annual cost of producing 10-in. and 12-in. pipe in-house.
Choosing the “most likely figure” seems to be
costs may exceed forecasts, gross margins and operating results may suffer and competitive position could be damaged.
- Controlling activities: Difficult to reduce by controlling activities. Blue Nile can make a contract that promises stable supply of diamonds and fine jewelry, but it will be difficult.
(2) Online distribution
- Risk : Purchasers of diamonds and fine jewelry may not choose
sales management, higher ratios of product rotation and less cost of sales management and operating cost
→ Higher competitiveness
C. Promotion strategy: Continuous leaflet advertisement, raising recognition, advertisement in the same sized format.
Original color of E-Mart, Yellow + Red =>unification effect
Execution of events: Chinese characteristics enjoying events
sales increased 11% to $2.6 billion due to growth in all channels of distribution.
- The number of Company operated TIFFANY&CO. stores and boutiques increased 8%. The Company added 16 retail locations ; five in the U.S, four in Japan, three in China and one each in Mexico, Korea, Austria and Canada. Three existing locations were closed; two in Japan and one in Korea.
- The Company introduced a
cost economies from global sales volume and learning effects from established company to strengthen its business model.
Strategic Outsourcing
Amazon outsources some of its value chain activity to outside companies. Amazon is an online retailer and does not manufacturing the entire product it sells on its websites, outsourcing delivery service as well. Also, increasing number of B&M companies