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According the scenario, I already found the cost dealing with the pollution but I can't explain in detail number. What detail number about the cost

According the scenario, I already found the cost dealing with the pollution but I can't explain in detail number.

What detail number about the cost of dealing with pollution?

Please include the reference ( if you use it) and use the data in attach files.

image text in transcribed Assignment- Business Report Can Chasing Small Customers Lead to Larger Profits? (ADRIANA GARDELLA, NEW YORK TIMES, 27 APRIL 2011) Darren Robbins and a partner founded Big D Custom Screen Printing. In its third year, the company based in Austin, Texas, recorded sales of US$900 000 and made a small profit. THE CHALLENGE: Should Big D start a similar, Tasmanian T-shirt printing business, to cater to a large range of customers in the music and art scene. THE BACKGROUND Mr. Robbins, a former full-time musician who still plays in a band, was nostalgic for the multicolor tour shirts of his youth, which he described as \"works of art.\" He said the one-color shirts sold at today's music and art shows appalled him. He was also disappointed by the quality of shirts created and said he could do better. With that goal, Mr. Robbins and his partner, who worked for Capitol Records, invested a total of US$225,000 to open Big D. The division of labor was clear. \"I was a natural-born customer-service geek, and he was a natural-born salesman,\" said Mr. Robbins, who resolved to take care of the customers his partner brought in. \"We wanted to be one of the big boys.\" As his partner traveled the country trying to win accounts, Mr. Robbins ran the shop, frequently declining business from potential customers who requested small orders. Mr. Robbins, 44, who has a background in ad agency account management, said that turning away business kept him up nights. He wanted every call to end with a sale. By the end of its first year, Big D had grabbed a few big accounts local video game and record companies that placed orders for 5,000 to 15,000 shirts. But when the shop was not cranking out large orders, it sat idle. Mr. Robbins said his partner feared that small orders would prevent Big D from handling bigger jobs should they come in. But given his ad agency experience, Mr. Robbins said he was used to demanding clients and short deadlines. \"With effective scheduling, you can pretty much accommodate any customer,\" he said. Following the lead of his competitors, he charged more per shirt for the smaller orders he did take. THE OPTIONS: At first, Mr. Robbins and his partner agreed on strategy. With their industry contacts, they said they believed they could land accounts from major bands. Focusing on high-volume orders made sense to them in part because Big D's suppliers offered a price break on large quantity T-shirt orders. But the partners did not realize that most bands were locked in to long-term contracts for their tour shirts. Given that, Mr. Robbins started to wonder about the strategy of chasing down high-volume clients, particularly when he had so many smaller prospects knocking on his door. But, he said, his partner saw no point in accepting orders for one or two shirts. His partner continued to believe big orders were crucial to profitability and that he could best win those accounts by conducting in-office presentations for corporate prospects across the country. THE DECISION: After a year in business, Mr. Robbins threw an anniversary party to thank his employees for their dedication. His partner, however, opposed the modest celebration because its cost meant the difference between breaking even and showing a loss on Big D's first-year sales. This disagreement highlighted the increasing tension between the partners' growth philosophies. Determined to accept smaller orders, Mr. Robbins bought out his partner around the time of the party. The split was amicable, Mr. Robbins said, with his former partner breaking even on the sale and returning to the music business. And then the economy crashed. \"Almost overnight, companies tightened their belts,\" Mr. Robbins said. At that point, he decided that no order was too small. He would find a way to take all business, even an order for a single T-shirt. He knew there would not be a lot of competition from the other local screen printers for the small orders. \"I noticed they weren't in a huge hurry to fit them in,\" he said. Big D began catering to those with small needs, including a Houston comedian who wanted 20 shirts. Once he made a decision to take all orders, Mr. Robbins reassessed his costs and determined that he could make a profit on the smaller orders, even without charging the significant markup that many of his competitors charged a markup that effectively discouraged customers from placing small orders. Instead, Mr. Robbins lowered prices on smaller orders, bringing them more in line with the per-shirt price for large orders. Big D charges US$5 per shirt for 40 to 499 white T-shirts printed with one color, while the charge for an order of 1,000 or more shirts is US$3.50 per shirt. He was able to take this step and still make a profit because, regardless of order size, Big D's costs to print the shirts were not that high. Because of the quantity discount, the company would still make a greater profit on its large orders, but Mr. Robbins said he decided to \"be as fair as possible\" on the smaller orders. His prices for one shirt, a \"micro-run,\" begin at US$25. He also eliminated set-up charges, a common fee charged by printers, and put his prices on Big D's Web site, mostly so he did not have to memorize them. \"Many of our competitors make you come to them for a price quote, adding a day to the process,\" Mr. Robbins said. He hoped that Big D's transparent pricing would become another way for the company to differentiate itself. \"The competition and my partner thought I was nuts,\" he said. However, Mr. Robbins said he understood his costs and could become profitable \"without gouging people.\" Big D Custom printing become profitable within 24 months after Mr. Robbins bought out his partner. BUSINESS REPORT EXECUTIVE SUMMARY At the time of opening a company or any kind of business, various factors have to consider which helps to assess positive and negative impact. Along with this, it supports to entrepreneur in order to determine cost of products and pricing strategy as well. The present study describes proposed pricing method which will be the best suitable for potential Big D Tshirt shop. For this, recent developments of T-shirt printing industry are undertaken along with level of ink pollution. On the basis of analysis, cost plus pricing strategies is proposed which should consider to the entrepreneur of Big D shop. TABLE OF CONTENTS PURPOSE OF THE REPORT.........................................................................................................1 MAIN BODY...................................................................................................................................1 Cost of dealing pollution........................................................................................................1 Ways to manage ink pollution and cost of it..........................................................................1 Place where ink should put and delivery fee for this..............................................................2 Proposed pricing strategy.......................................................................................................2 REFERENCES................................................................................................................................3 2 PURPOSE OF THE REPORT Purpose of the present business report is to provide information about the sustainability as well as corporate social responsibilities situations in the industry of t-shirt printing. Apart from this, level of ink pollution which comes into existing due to printing t-shirts is addressed for assessing cost which will incur in the upcoming Big D business. On the basis of such all the factors effective pricing strategy is proposed to the management in order to sale products. MAIN BODY Cost of dealing pollution In any of the market or industry, pollution and some other conditions are always their which affects to the sustainability of business. In the present case study, entrepreneur is going to open a Big D shop in t-shirt printing industry. On this particular sector, there is huge negative impact of environmental as well as social aspects. Due to which the firms unable to sustain in the market for long term. After considering this condition of t-shirt printing sector, the upcoming business should employ effective strategies to sustain. Apart from this, level of competition in the apparel industry is very high because huge number of firms are operating their (Australian Industry Report 2016, 2016). In the condition of cut-throat competition, new proposed shop must take responsibilities of corporate social welfare (CSR). It leads to attract more number of customers and gain competitive advantages in the t-shirt printing industry. Therefore, objective of sustainability will be easily resolved up to the higher level. Cost of CSR will be moderate for the shop but in exchange to this it will generate huge sales. Henceforth, cost of dealing pollution for the new Big D shop will be low to moderate. These both the terms like sustainability and CSR create impact on the decisions of pricing of t-shirt up to greater level. For example: if higher cost imposed on the shop for sustaining and doing social welfare then price will be charged high by the management and vice-versa. Ways to manage ink pollution and cost of it In the t-shirt printing industry, ink is one of the highly important resources because it is one of kind of base to print t-shirt. Level of ink pollution in the Australia is moderate to high and in this condition if entity not manage it then creates negative impact on the whole country. Therefore, using eco-friendly inks which not contains those kinds of aspects which incur pollution this condition can be managed. In addition to this, the entrepreneur needs to consider 1 artist paints rather than ink for printing t-shirts which will be highly effective strategy (Stouffer, 2016). When looking at the cost aspect then it will impose little more expenses because price of ink is lower as compared to artist paint. In exchange to increasing costs with few proportion ink pollution situation will be managed up to the greater extent. Place where ink should put and delivery fee for this In the above analysis, strategies for managing and reducing ink pollution are explained. Further, until if ink comes out from the Big D shop while printing t-shirts then it should put into the dumping area. The reason is that, those wastages come out from the industries are used by some firms for reusing and make them productive (Hocking, 2016). Cost of delivery in order to put ink into dumping area will lower but create attractive environment. Due to this particular technique overall pollution level will be affected in favourable direction and make the environment better. Proposed pricing strategy After considering the above analysis it can be observed that level of cost for majority of the aspects is low or moderate for the Big D shop. When it considers corporate social responsibilities and ink putting strategies into dumping area then costs is at the lower or moderate level. However, for managing ink pollution when the entrepreneur uses artist paints then it will take more charges. On the basis of these all, it can be proposed to the Big D shop that it should employ cost plus pricing strategy. The reason is that, suggested method covers overall cost of production and margin can be charged by entrepreneur itself (Nagle, Hogan and Zale, 2016). Along with this, sometimes it needs to use competitive based pricing tactics also because level of competition in the t-shirt printing industry is high. 2 REFERENCES Books and Journals Hocking, M. B., 2016. Handbook of chemical technology and pollution control. Elsevier. Nagle, T. T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing: New International Edition. Routledge. Online Australian Industry Report 2016, 2016. [Online]. Available through: [Accessed on 23rd September 2017]. Stouffer, H., 2016. Turning Carbon Air Pollution into Artist Paints and Inks. [Online]. Available through: [Accessed on 23rd September 2017]. 3

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