Answered: Assume that you have completed your…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

A. Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $250,000 more cash than you think you will need. Your proforma analyses of the environmental factors have indicated a possibility of a new competitor in your industry during the upcoming year. What would you most likely do from the following list?

a. Give all the employees a bonus

b. Purchase $250,000 of U.S. Treasury bills

c. Purchase some replacement equipment that the plant manager needs

d. Spend $250,000 more on research and development

B. What does the following scenario suggest to a company CEO? The company proformas for the upcoming year shows sales revenue growing by 2%, the average price received growing by .5%, and gross margin as a percentage growing by .5%.

a. The average price is not increasing fast enough

b. Marketing is doing a good job and production is not doing a good job

c. Marketing and production are not working together

d. The CEO would want to look at the proforma cash flow statement

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