important concepts learned

important concepts learned

Business discussion questions

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Part one: important concepts learned

Chapters nine and ten contained important concepts for my academic knowledge and passing exams and prepared me for my career practice in the field. One of the most important concepts I got from these chapters is the issue of demand and elasticity. Sometimes, people will buy something at a very high price in one location yet buy the same commodity at a lower price elsewhere. A soda purchased at a shopping mall costs cheaper than when purchased at a five-star hotel. These are some of the things I have been observing, but I got the answers through these chapters. Demand can be elastic or inelastic. Elastic demand changes with time, implying that prices also change as demand changes. In this case, consumers will buy a commodity at the prevailing market price. On the other hand, inelastic demand implies that demand does not change with time. In this case, consumers may not have much choice regarding the prices of commodities; they will buy even if the prices are high.

Another essential concept learned from chapter ten is distribution channels. I have seen some companies operate by direct contact with the retailers and consumers, while others have set up distribution channels in various regions. Before this lesson, I did not get the reasoning behind such strategies. I learned that companies consider the cost and efficiency of distribution channels before deciding how to distribute their products. The idea of a distribution channel is to get products across to the consumers in the easiest and cheapest ways.  I was able to connect the information in the two chapters. Long distribution channels raise the expenses and force companies to raise prices as compensation for the high costs incurred. I also learned that branding is an important aspect that determines the prices of goods. Some of the products from well-known brands are sold expensively, and customers purchase them since they trust the brand.

Part 2

Question 1

Billing hourly is the measure of time spent dealing with business extends charged to a customer as per a settled upon hourly rate. Charging Hourly is detrimental to the Working Relationship between you and your Client. This would be the situation with taking a lawyer who charges hourly to represent you. On the other hand, project pricing implies a model where you will gauge expenses of the undertaking, evaluate its financial worth, and the due bill of the venture. Generally, clients like the project pricing model. Worldwide enterprises and new companies have some commonality. They all have spending plans. Knowing the specific expense of an undertaking, a client seeking services from a lawyer is useful. Lawyers that give a repaired value front are in a decent situation to win clients. Secondly, the flow of income is predictable for lawyers who opt for the project pricing model. Simply the advice is: ensure you’re requesting instalment at customary stretches unmistakably expressed in your agreement.

Question 2

Some of the factors that would motivate me to buy a franchise after school are the monetary benefits resulting from an increased number of customers and working with well-established brands. Also, franchises enable franchisees to access loans easily with a low-interest rate.

References

Prinsloo, K. (2019). Hourly billing vs value-based pricing for web designers.  freeCodeCamp.org. https://www.freecodecamp.org/news/hourly-billing-value-pricing/

Iacobucci, D. (2012). Pricing. In marketing management (5^th Ed.).

Iacobucci, D. (2012). Channels of Distribution. In Marketing Management (5^th Ed.)