PARAPHRASE chapter 14 Essay Example | Topics and Well Written Essays - 1250 words

PARAPHRASE chapter 14 - Essay Example As a result, these technological changes influence the phasing out of some highly regarded popular models. Conversely, global beverages manufacturers such as Coke and Pepsi operate in an industry that is not influenced by technological changes to necessitate the need for a formula change. For this reason, the two continually divest while the recurrent expenditure for the auto manufacturers continually rises to ensure production. Brand equity has been crucial to Pepsi and Coke since consumers valued the brands and identify with them consequently purchasing products from the two firms continually. For this reason, the two companies have created unique brands unlike companies such as Detroit. Indeed, what the two companies rely on is the brand equity since consumer studies indicate that Coke and RC have no different taste. Conversely, creating brand equity has evaded Ford and GM for long. Furthermore, the choice of selecting a particular brand of beverage arises from personal considerations that make consumers stick to the particular brand. On the other hand, facts related to features and prices of a model guide consumers to choose the brand of choice. Factors such as imitations and employee turnover, affect General Motors and Ford’s sustainability since they are a threat to the firms’ advantages in technology and economies of scale. In this case, the copyrights held by the firms at times expire while other firms imitate them and come up with similar products. On the other hand, the formula used to manufacture products by Coke and Pepsi is unique and thus inimitable. To end with, automobile manufacturers have an unlimited access to a wide market enabled by the internet and the option to engage in dealership with other countries for their products. On the other hand, beverage manufacturers and producers of perishable goods entering the market face a challenge to identify shelf

Budgeting Essay Example | Topics and Well Written Essays - 250 words

Budgeting - Essay Example Forecasting should not be mistaken with budgeting. Forecasting is a management tool used for planning and setting a goal. Forecasting makes use of past and present data, and trend analysis to estimate sales, or to estimate demands for a product. It uses statistical data in estimation and uses management expertise, knowledge and judgment (GeminiGeek, n.d. ) An operating budget is a projection of estimated income and expenses that is based on the forecasted sales which is usually done for a short term period, normally for one year while a cash budget is a way of monitoring the cash flow of a business. Cash budget makes it easy to see how much money comes in and out for the period, thus, it becomes a simple way to monitor the financial condition of the business or household. A cash budget can be done either on a weekly or monthly period for an accurate monitoring (Business Directory, n.d.) Zero budgeting departs from the traditional budgeting wherein all expenses must be justified for every new budgeting period and every function within the organization is analyzed. Zero budgeting starts from zero and does not take into account prior year’s budget (Cronin, Tom). For instance, if you have a budget of $20,000 for a campaign in 2011 and it did not produce good result, the manager must justify why he needs the same budget for 2012. The manager must develop a plan from zero-base and justify why, where and how he will spend the money of the company. In other words, if the manager proposes a campaign for a product, he would pinpoint the projected expenses and profit to show its feasibility so that the company could assign a particular budget for that. All budget proposals are then analyzed and ranked according to importance. The system lets the management identify priorities, allows management to compare and analyze the needs of every unit in the organization and make funding allocation. In zero based, budgets are built