Mrs. Acres Homemade Pies and Soft Drink Essay

The company produces specialty pies and sells them in local supermarkets and select family restaurants. In each of the first six months, Shelly and three part time employees exchange 2,000 pies for $4. 50 each, netting a profit of $1. 50 per pie. The pies were quite self-made and Shelly could not keep up with demand. The companys success results from a quality crop and productive employees who are motivated by incentives and who wonder being part of a successful new business. To meet demand, Shelly grow operations, borrowing money and increasing staff to four full-time employees. get throughment and sales increased to 8,000 pies per month, and profits soared to $12,000 per month. However, demand for Mrs. Acres Homemade Pies continues to further beyond what Shelly green goddess contribute. She has some(prenominal) woofs (1) maintain current fruit levels and rustle prices (2) expand the facility and staff while maintaining the current price or (3) contract the production o f the pies to a national restaurant chain, giving Shelly a percentage of profits with minimal involvement. When Shelly Acres started selling her pies, she had to find her give birth customers.None of the local restaurants and supermarkets knew her products, so she had to offer an affordable product to enliven restaurants and supermarkets in her products. As demand increased, Shelly started producing more pies to meet this demand. At the moment, she cannot supply all the demand. A way to decrease this demand is to increase prices. She can also increase the production level to meet the demand. The first picking implies that Shellys company is not going to grow since its current sizing will be maintained by keeping an artificially mellowed price.The second solution requires Shelly to find the resources to finance the expansion of her activities. The third option leads Shelly to lose her specific know-how by providing it to the national restaurant chain. It also implies that Shelly does not own her business any longer. In economics we classify goods as tangible products, example might include food and drink, cars, digital televisions, flat-screen televisions, nix products and cricket batsServices are sometimes known as intangibles, education and health-care are two important services and tourism, business consultancy, change and home insurance are all examples of services. A soft-drink manufacturer produces several flavors of drink for example, cola, orange, and lemon. Each flavor has several versions such as regular, diet, and caffeine-free. The manufacturer operates factories in several states. You create input records that list version, flavor, yearly production in gallons, and state (for example Regular Cola 5000 Kansas).The aim of divider in consumer markets is to bring the focus on to manageable groups of like-minded individuals who have a high disposition for a product. Coca-Cola has customers who sine qua non low hail drinks for consumption at h ome. It has customers who want a mixer or a non-alcoholic drink in a bar. It has customers who are hot and thirsty and want a cool refresher outside the Duomo in Florence. The same consumers may at various times join one of the segments and when they do, they will assure the product in a different light and value it in a different way.In business-to-business markets the aim of segmentation is similarly to sire at clusters of like-minded companies. There is a very strong haul to use segmentation in business-to-business markets to win a competitive advantage as there is often little to differentiate one product from another. Segmentation therefore links strongly with a strategy to achieve a sustainable differentiated position.References highered. mcgraw-hill. com/sites/dl/free/ /ferrell_walkthrough. pdf http//www. b2binternational. com/library/whitepapers/whitepapers03. php.