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Operating a business

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Can I please have someone answer the 2 questions below?

1. Suppose you decide to open a copy store. You rent store space (signing a one-year lease to do so), and you take out a loan at a local bank and use the money to purchase 10 copiers. Six months later, a large chain opens a copy store two blocks away from yours. As a result, the revenue you receive from your copy store, while sufficient to cover the wages of your employees and the costs of paper and utilities, doesn't cover all your rent and the interest and repayment costs on the loan you took out to purchase the copiers. Should you continue operating your business?

2. When the DuPont chemical company first attempted to enter the paint business, it was not successful. According to a company report, in one year it "lost nearly $500,000 in actual cash in addition to an expected return on investment of nearly $500,000, which made a total loss of income to the company of nearly a million." Why did this report include as part of the company's loss the amount it had expected to earn - but didn't - on its investment in manufacturing paint?

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1. You should continue operating your business. Since the revenue you receive covers your variable costs, the wages of your employees and cost of paper, and utilities, and contributes partially to your fixed costs, namely a part of the interest on the loan you took to purchase the copiers and a part of your rent. Now the rent and interest on the loan you took out are fixed costs and have to be incurred in the short run. If you stop ...

Solution Summary

The answer to this problem explains the operating of a business. The references related to the answer are also included.

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The answer to Corporate, business, functional, and operating strategies

I am truly in need of assistance with the following task as I am experiencing grave difficulty in gathering information on the strategies for the company specified. Also it appears that one of the company's (Porter-Cable) was possibly acquired by another (Black and Decker). The task is the following:

Please compose a 3-5 pg. essay answering the following questions:

Now that you have studied economic indicators, it's time to turn your attention to competition and considering the future via forecasting. Prepare a report detailing the following:

1 - First, review the web sites of the following companies participating in the power tool industry: Black and Decker, Makita, Bosch, Porter Cable. List as many corporate, business, functional, and operating strategies for each company as you can glean from the posted literature
2. - Considering that forecasting services and other information agencies often differ in their prediction of the future state of the power tools industry and vital economic indicators, how would you go about putting a forecast together given these disparities?

Websites which were provided are the following: http://www.blackanddecker.com/

http://www.makita.com/, http://www.boschtools.com/, http://www.porter-cable.com/index.asp?e=269

***From what I have read/gathered - Black and Decker is focusing on quality, has acquired companies to assist in their growth and are trying to increase their market share, customer loyalty and are trying to become a truly multinational organization.

Bosch - They are trying to focus on R&D, quality and delivering a quality product to the customer as quality is what is what is important. Yet, that is along with proper pricing. Additionally, they are attempting to balance high-cost wages throughout their organization to decrease operational expenses and increase their reach throughout the market.

Makita is a large and growing company which is increasing their focus on the professional tool user thereby redesigning their marketing and product line.

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