BUS 315 Strayer University Wk 3 InfoGear Company Proposal
Imagine that you just created a new start-up company. You want to compete in the growing industry of drone navigation systems. VectorCal is the only major company in the field. You also want to be a leaner, faster version of a company that you view as being too slow and costly. Note: You may create and / or make all necessary assumptions needed for the completion of this assignment. Write a two to three (2-3) page paper in which you:Criticize Vector Cals forecasting method. Determine the appropriate forecasting approach for your company. Provide a rationale to support your determination. VectorCal Company uses an efficient forecast method, study costs, price comparison, analysis price, comparison of previous offers, and the study of other companies that offer the same or similar services. I as a service company, I have to consider the costs as; rent, equipment, insurance, transport, utilities, salaries and office materials. I would compare the costs and prices of my services, taking into account the costs of other offices like mine. We all know that the price is the sum of cost and profit. Therefore the forecast of the price depends on the price comparison of competition, considering that this company offers a similar service of mine. There are three ways of forecasting, (Hyndman, R. J., 2014), as; forecast short term, medium-term forecasts, long-term forecasts. Short square have to do with the staff, the production, and transport. The medium-term has to do with demand forecasting and programming of work. The long-term is used in the search for opportunities marking, implementation the new strategies, business resources and the environment too. The Proposed method is used to estimate a reasonable price, this method analyzes the normal prices against high prices, and these high prices are the result of circumstance outside the company, (Voronin, S., & Partanen, J. 2013, pg 21, pp 2). The first assumption is derived from the basic notion that costs, Competitors, customers and Affect pricing decisions, (Winer, R. S. 1986). definitely price competition affects the price of your product, based on that you need to Know and study the market thoroughly and especially the market. With a good analysis of these parameters it can be found an acceptable point of company profitability.
