Product Development


What is the most important thing to consider in new product development for a small business? Explain why. Is it necessary to evaluate the new product idea at each stage of the development process? Explain why or why not.

You know many of the products that I have bought over the years do not keep up with the standards of products that have been around for years. In a small business you have to make sure that the product is safe for the consumer. If the product does not meet the customer’s standards they will not endorse the product to anyone else but more than likely will give you a bad review on the product. Larger companies do not really worry about whether or not a product will pass or fail. When a company is considering developing a new product it must be sure that the product is “highly desirable, feasible, and cost-effective” (Kotler and Keller 2009). The product must catch the eye of the consumer in order for them to purchase the item. Many of the products that small businesses are coming out with now are feasible and consumer’s will purchase them. Look at the different types of cell phones and how many people purchase this product. It is feasible to the consumer and they are willing to take the risk on purchasing the product. The products must be cost effective in order for the business to make any money off of it. If customer’s are interested and it is marketed right the consumer’s will fly into the store to get that product.

Marketing


Within any business there are five stages in which a new product is adopted awareness of the product the consumer must be aware of the product that the business is marketing. Interest in the product the consumer must have an interest in the product for them to buy it. Evaluation some businesses will use this to let the consumer evaluate the product to see if it meets their approval. Trial is when the product will reach the shelves of the small business to see how well the product will sell. The last stage is the adoption of the new product onto the small business shelves. Consumer’s will not purchase products that do not meet their needs of that product. I know from experience that many of the products that I have used have not met the standards that they should because of the rush to get them on the store shelves. In my opinion the consumer will adopt and use the product or service from the time that they buy the product. Some consumer’s will wait for the product to get out all of the kinks so that the product produces more than the first batch of the product.

Dow Jones


Why is the Dow Jones Average an index? How does the Dow Jones relate to the Nikkei index? What is the relationship between an index and the inflation rate?

In reading about the Dow Jones which is an index that averages out the performance of 30 stocks within the various markets. Now each one of these 30 stocks lies in one of the country’s major industries and illustrates the changes within the stock prices and how it relates and effects the rest of the economy or stock market. Dow Jones can be used as a benchmark so that they can compare other stocks and evaluate whether or not they are doing better within the market. This also allows them to see the market trends and identify them easier. In discussing the Nikkei index which is Japan’s version of the Dow Jones Average which accounts for 225 stocks in a variety of industries unlike the 30 that the Dow Jones averages. There are indexes for just about anything in the world today and it is important to note that all indexes are not related to inflation. When we think about indexes we find that the Consumer Price index is one that identifies trends and shows if the market prices effect the dollar. Furthermore, the Fog Index which is used to make and show averages about literary works within those markets.

Advertising


Public relations within any business or ad has to appeal to the target market that the business has chosen. As a business owner you have to portray your product in such a way that will appeal to the consumer. Things that need to be taken into consideration when developing or promoting a new product is the public relations that is involved with the product and the mission of the company. I have watched a few different commercials and all of them stand behind their products or services. One of the commercials that I watched was about Gieco and insurance for your home. The man that played the part was acting like a raccoon and destroying the house to show the consumer that these things can happen without any notice and you are stuck with the bill and fixing the house. These types of commercials try to entice the consumer to purchase their insurance at a low rate. This business is showing the consumer that it is better to be covered than not covered when mahem hits. I thought that the public relations was very good and I would have to say that most of their commercials are always like this and stick in your head. Another one of the commercials that they have is a guy getting into a car accident because he was starring at the guy who was portrayed as a girl in this commercial running down the sidewalk.

Advertising commercials


One of the television advertisments that I have watched was about Pamper’s diaper’s and how the shape of the diaper is made to fit any child. With room for movements and other various movements. This ad was telling the consumer that Pamper’s is the right choice from all of the other choices for diaper’s. They put little designs on the diaper’s to make them more appealing for the consumer. Back in the old days they would use cloth diaper’s for the babies and they would have to wash them out. Disposable diaper’s are a dream come true for most parents because they are quick and simple and with little or no mess. The graphics that these commercials use for the ads is wonderful because the ads portray their products on babies and how well the diaper moves as the baby is crawling around. I also think that the ad is socially responsible because it is geared toward parents and babies. To make life a little easier for busy parents and for the child as well. In this day and time I could not see using cloth diaper’s but I would if I had to. Thank goodness that part of it is over. I do not think that ads like this need any improvements.

Management


In management, how important is it to learn to use mathematics to solve problems? How valuable is an MBA degree without the ability to identify and calculate the cost of a company’s capital, its return on investment, gross margin percentage, break-even point, or what percent of a population would be willing to buy its product?

Within any business the management team should be able to solve mathematical problems throughout the business. In order to determine if the business has made any type of money the management team would have to calculate the net profit of the business. It is very important to be able to solve mathematical problems and by having a MBA without the mathematics would be a waste of time. Sure many programs out their will do the math for you or the business but how accurate can that be if someone miscalculates the number’s within those programs. Mathematical equations can be used in a variety of ways within the workplace or business.

It is important to be able to solve these mathematical equations so that the business heads in the right direction. Customer’s want to be able to trust the business with their money or other valuable assets. If the customer’s do not trust the business the customer’s are certainly not going to purchase any type of products from your business. Math is used in every part of the business world especially as a manager.

I have been a manager before and some of the math problems were done on a computer but most of the work was done by the manager. By getting the weekly numbers and daily numbers depending on sales. We would have to find the payroll percent and what sales were compared to last year’s numbers.

In business you have to use equations to find the numbers for the amount of sales that you have had for the day. At my current job you have many different things that require equations to find out the percent in sales, food cost, payroll, and operating supplies. For example the food cost is determined by a 24 hour period. If you pull the food that you need for the entire day from a certain period your food cost is determined by the amount of sales that you have for the day.

Say you have for day one 29.9, Day two; 31.4, day three; 35.5, day four; 38.7, day five; 28.9, day six; 27.5, and day seven; 29.9 the food cost percent would be 31.7 for a week. By adding these numbers together and dividing by seven you get the percent of your food cost. Now, your company may be different but many of them have to be under a certain number in order to receive their bonus for that week. The company that she currently works for requires that you have a food cost below 30.0.

Taxable Income


While researching the methods of cash basis versus accrual basis of accounting within The Michele Corporation to determine on which one would work better for the Corporation. By discussing the advantages and disadvantages of both methods will give The Michele Corporation a better understanding of which method would work the best for the business. In defining, the Constructive Receipt role within the corporation and how it pertains to The Michele Corporation. Cash basis and Accrual basis methods will both be considered for this corporation so that a decision about the corporations standing.
The cash method of the Michele Corporation happens when the sales are recorded when they are paid. About the only time, a business can record cash when passed through the hands of the business owner or it is an expense. Unlike the accrual basis in which the credits are recorded instead of when the cash was received. The debits of the business are owed instead of when they are paid by the company. By using, the cash accounting method simplifies the Michele Corporation, which allows the Michele Corporation to reduce the bookkeeping costs, and takes less time than the accrual method of accounting. The cash basis accounting allows the Michele Corporation to determine their current profitability by keeping the balance sheet so that the business owner can assess the information concerning the financial situation of the Michele Corporation. The Michele Corporation’s advantage to using the cash is that the corporation would not have to pay taxes on the monies that have not been received by the corporation. According to Jones R and Pendlebury (2000, p. 143), cash-based accounting is a major accounting method that recognizes revenues and expenses at the time physical cash received or paid out, and justified on the grounds that the government budgetary, and control process is an annual.
One of the disadvantages of the cash method is that for small businesses and individuals the cash flows could be restricted during certain times. This is something that would to be looked at during this research process. In the first place, the receipt of non-cash forms of payment creates revenue equal to the value of the payment (Jones, 2011). Many companies that deal with cash business from consumers the cash basis of accounting would be simply better and convenient along with reliability for the corporation. Unlike accrual basis, “income and expenses are recorded when they occur in a fiscal period instead of when the company receives or pays cash.” (Horngren, 2008. p. 687). The Michele Corporation would be able to track expenses and cash, which would not require a bookkeeper. Another disadvantage of the cash method is that if records are not kept the company may not make their payments in a timely fashion because they will not know what they have made if the transactions are not kept in order or written down in a journal or ledger. Because the cash method could be manipulated to defer income and accelerate deductions, the tax law limits its use by large corporations (Jones, 2011).
The accrual method within the Michele Corporation refers to the basic rules or guidelines that the business keeps their financial records. A corporation has to have pristine records so that all monies are accounted for within the corporation. The Michele Corporation has to decide which one of the methods would work for this situation. By understanding, both the cash and accrual methods of accounting will allow The Michele Corporation to see which one would work better for the business, Depending on the type of legal methods, the small business has to decide whether they will extend credit to customers or pay the tax on the cash that The Michele Corporation brings in.
According to generally accepted accounting principles (GAAP), only the accrual method of accounting correctly measures annual income (Jones, 2011). The accrual method within The Michele Corporation has some advantages. One of the advantages of the accrual method is that the financial information about the corporation can be recorded as the transactions occur not when the cash received from the consumer. The accrual basis method of accounting allows the corporation to prepare the financial statements so that they can view at any time to see where the financial standing is within the corporation. Furthermore, the accrual method does not take into consideration whether the corporation has paid the bills or not.
One of the disadvantages of the accrual method for accounting is that it is complicated and rather expensive for The Michele Corporation. The cost to implement and employ the accrual method for The Michele Corporation is expensive compared to the cash method in accounting. Another disadvantage in using the accrual basis method for The Michele Corporation would result in the corporation may owe taxes on the income before the corporation receives that income. With the “cash basis this is used for smaller companies when they record revenue after they receive the cash and pay out cash, that can be tremendously misleading for the financial statements” (Weygandt, 2008).
Constructive receipt is applied to an account when the income is credited to the taxpayer’s account. This means that when The Michele Corporation receives credited income allows the taxpayer to draw on the income during the taxable year. If the payment is received and not cashed or lost The Michele Corporation would still have to claim it as income because it would be a restriction composed on The Michele Corporation. Having a business requires understanding on how accounting works within the business. By having, a clear understanding the owners can see the financial standing of the corporation. If the corporation sees that there are items that need to be taken away or are not needed anymore, the corporation should dispose to reduce the cost of the corporation.
By keeping informed about the corporation’s net present value, will help to determine if the new retail store will make it. Depending on the information that is found within the research by determining the net present value of how the corporation’s financial standings are at the end of the fiscal year. This is information that must be made available to the corporation. On the cash basis records are not required but should be kept to account for the money that he or she has made.
In conclusion, the cash and accrual methods both have some advantages and disadvantages concerning business. The Michele Corporation needs to decide which methods would work better for the business. Funnell W and Cooper K (1998 pg 129), the difference between accrual basis accounting and cash basis accounting revenues and expenses are recorded. In my opinion, I would have to say that the recommendation would have to be the cash basis method because the

References

Jones, S. M., & Rhoades-Catanach, S. C. (2011). Principles of taxation for business and investment planning: 2011 edition (14th ed.). New York, NY: McGraw-Hill/Irwin.
Harrington, S. E., Niehaus, G.R. (2004). Risk and Its Management The McGraw-Hill Companies, Inc.

Jones R and Pendlebury (2000) Public sector accounting 5th edition, Pearson Education, Essex, chapter 8.
Funnell W and Cooper K (1998) Public sector accounting and accountability in Australia UNSW Press, Sydney, pp. 117-149.

Horngren, C. T. (2008). Introduction to Management Accounting (14 ed.). Upper Saddle River, NJ: Prentice Hall.
Weygandt, Jerry J., Kimmel, Paul D., & Kieso, Donald E. (2008). “Financial Accounting” (6th ed.). Hoboken, NJ: Wiley. Retrieved June 20, 2011 from eBook of University of Phoenix.

Mission, Vision, Values, and Environmental Scanning


By describing, the three critical components of environmental scanning that would apply to the business that I have chosen which would be an organic aqua-phonics greenhouse. Within this paper, I will discuss the purpose of the business clearly and succinctly. I will discuss three of the critical components that would apply to Ponder Hill Enterprise’s. The only stakeholder’s are the owner’s Tammy and David where Tammy takes care of the paperwork, and other business related items. David takes care of the daily maintenance of the Enterprise. Therefore, by making sure that everything is in running order for the business. The external components of the business would include the vendors, consumer’s, suppliers, or anyone else that the business has within their company.
In defining environmental scanning this is the acquisition and use of information about the current events, trends, and relationships within the business’s external environment. A company mission statement is what separates them from other company’s like them and helps to identify the scope of the business operations. The mission statement clearly states the business’s product, market, and technological areas that will emphasis the way the company reflects on values, and priorities of the strategic decision makers within the business. There are implications to everything that is done within the business therefore, there would be needs to attend to if the company or business is not profiting or standing up to their mission statement. This would indicate that the mission statement of the company would need to be looked at. In this day and time the sustainability, that defines your business and goals within the market place. As a business owner, she will have to make the decisions about the business and everyday operations. Creating the mission statement for your business needs to be looked at or memorized and the owner should always stick to the promises they make to consumers. By looking at the long-term objectives, of Ponder Hill Enterprises that I would like to build within the next few years. The owner would need to consider the following: return on investment, competitive positioning of the product, technological leadership within the business, profitability, and other objectives as well. According to Pearce & Robinson (2004), the thorniest issues faced in defining a company mission are those that pertain to responsibility.

Mission Statement
The mission of Ponder Hill Enterprises is to provide eco-friendly ways to cut back on pollution and save money in the process. To provide fresh produce all organic with no chemicals of any kind.

Vision Statement
Our company’s vision statement is to become the America’s leading consumer company for organically fresh foods.

Values Statement
Ponder Hill Enterprise’s values statement is to be driven by the creativity, resourcefulness, focus, and entrepreneurial spirit to have the support of the consumer’s. To have an inspired and diverse team that respects the contribution from everyone within the company. To ensure the health and safety of our people surrounding are paramount. Ponder Hill Enterprise’s will prove to be a leader in their responsibility for the environment. That the integrity of the company is never compromised and that they make a positive contribution to the society.

Pearce, J. A., II, & Robinson, R. B., Jr. (2005). Strategic management: Formulation, implementation, and control (9th ed.). Boston, MA: McGraw-Hill Irwin

Remote Environments


The remote environment has a variety of factors that compromise any type of firm’s operating situation. “The remote environment comprises factors originating beyond, and usually irrespective of, any single firm’s operating situation—economic, social, political, technological, and ecological factors” (Pearce & Robinson, 2005). As the world changes so do, the trends with clothing books and other leisure activities that people like to do. This type of environment presents the firm’s with opportunities threats and constraints. In the economy today it is hard for contractor has to keep their business going because of the slow times. For example in Gatlinburg Tennessee there are usually a few lay offs because of the slow activity during the winter months. Being in construction during these down times is not an easy task because many people or businesses are not looking for repairs or improvements for the next season. The industrial environment has factors that influence a firm’s prospects originates within the environment of the industry including the entry barrier’s competitor rivalry the availability of substitutes and the bargaining power of buyers and suppliers. The operating environment comprises factors that influence a firm’s immediate competitive situation along with competitive position customer profiles creditors suppliers and the labor market. All of these factors will create challenges that the business must face throughout the experience. This will allow the firm to attract or acquire the needed resources and allow the business to earn a profit by marketing the goods or services that they offer.

Pearce, J. A., II, Robinson, R. B., Jr. (2005). Strategic management: Formulation, implementation, and control (9th ed.). New York: McGraw-Hill Irwin.

Social Responsibility


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All business’s have a social responsibility to their employee, executives, Board of Director’s, and stockholder’s. The business is also held accounted for the customer’s, suppliers, creditors, governments, unions, competitors, and the public as well. Everything that is done within the world today has channels to run through. An excellent example for this would be the company that I am working for now. Ruby Tuesday’s is known to be a bar and grill where customer’s can come to have a good time and enjoy their dinner or watch the games that happen to be playing that day. Ruby Tuesday’s is coming up to the gaming season but in the process they have made some changes to what type of image they want to set. Furthermore, if the company did not set standards they would not make a profit and would not keep customers if they do not live up to the promise that they make to the customers. Today I was serving an older couple and before they left, the woman said that she was very pleased with her experience with us today. She said that it was nice to go out and have a nice dining experience instead of the fast food. The whole point of being in business is to make an impact on the customer’s that come into your establishment. Finding out what your customers like and dislike is a great tool to understanding what they expect when shopping in your business. The mission statement of a company shows the customers that they are ready and willing to make them happy no matter what. “Social responsibility is a critical consideration for a company’s strategic decision makers since the mission statement must express how the company intends to contribute to the societies that sustain it” (Pearce & Robinson, 2004).