please help to answer the attached assignment and thanks

Answers a. Generic strategy GF is planning to adopt is focus strategy whereby the will focus on reducing the cost of production by adoption of the use of new raw materials which are cheaper. They will be able to increase their net profits by still charging average prices to its customers. This will also enable them to increase their market share if they lower the price and still make a profit. This will also reduce competition. Their current generic strategy is differentiation strategy whereby the re just focusing on the product different and more attractive than those of other related companies who seems to be competitors b. Product life cycle introduction growth maturity decline Since the existing product has declined in terms of profits, they need to change the product in order to experience better profits. They need to lodge the new product. c. Contribution margin= selling price less variable cost premium (regular) sales less: variable cost selling cost marketing and promotion contribution raw materials packing cost delivery cost profit before tax tax profit after tax 18,000,000 -900,000 -360,000 16,740,000 -5,400,000 -4,500,000 -750,000 6,090,000 -1,218,000 4,872,000 premium (family) Sales less: variable cost selling cost marketing and promotion contribution raw materials packing cost delivery cost profit before tax Tax profit after tax d. Evaluate geoffreys suggestion to change the pricing of the existing brands Geoffreys suggestion is good too since the profits will still remain high as shown above e. NPV and payback period initial investment packing system cashflow statement sales in unit sales revenue less: expenses production cost additional wages selling and marketing costs promotion expenses depreciation profit before tax less: tax expense profit after tax 12,000,00 0 2014 2015 2016 2017 2018 2019 200,000 240,000 288,000 345,600 380,160 418,176 $'000 $'000 $'000 $'000 $'000 $'000 12,000 14,400 17,280 20,736 22,810 25,091 -6,600 -500 -7920 -500 -9504 -500 -11405 -500 -12545 -500 -13800 -500 -840 -2,000 -2,000 60 -12 48 -1008 -2000 -2,000 972 -194.4 778 -1210 0 -2,000 4,066 -813.2 3,253 -1452 0 -2,000 5,379 -1075.8 4,303 -1597 0 -2,000 6,168 -1233.6 4,934 -1756 0 -2,000 7,035 -1407 5,628 add back depreciation cashflows discount factor 2000 2,048 0.87 present value total present value less: initial investment 1,781.76 17,687.99 -12,000 5,687.99 2000 2,778 0.757 2102.94 6 2000 5,253 0.658 3456.47 4 2000 6,303 0.572 3,605.3 2 2000 6,934 0.497 3446.19 8 2000 7,628 0.432 3,295.3 0 17687.9 9 payback period 2014 2015 2016 2017 1200010946.5 Payback period=3+ =3.3057 years 3446.198 1781.76 2102.946 3456.474 3605.32 The company should introduce the new project since the cashflows will be higher than the initial investment Question 2 contribution sales revenue less: expenses production cost selling and marketing costs contribution 2013 2014 12,000 2015 14,400 -6,600 -7920 -840 4,560 -1008 5,472 During the year of 2014and 2015 the company will be enable to make higher profits compared to Geoffrey's suggestions. So if the company could have relied on the two year Geoffrey's suggestion could have being better. The contribution for those 2 years is less than the contribution regarding Geoffrey's suggestion