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Firstofall,it’ssimpletoestablish.Justpayasmallfee,getthenecessarystateandlocallicensesorpermits.
Secondly,it’smorefreerindecision-making.Asasoleproprietor,Icanmakemyowndecisionsonbusinesspoliciesandoperations,suchasthetypeofgoodsorservicesIwanttoofferatthepriceIfeelappropriate.
Thirdly,it’seasytokeepoperationalandfinancialsecrecy.Idon’thavetoreporttoshareholdersorboarddirectors.
Fourthly,it’slesstaxburden.Thetaxratesforsoleproprietorsareoftenonlyhalfofthoseforcorporations.
Lastbutnotleast,it’sexclusiveuseofprofits.ifIworkhardandmakeasmallfortune,Icantakealltheprofitsanddon’thavetosharethemwithanyoneelse.
Chapter2Marketing:
AnOverview
1.Howwouldyourbusinessofferadvantagesovercompetitivefirms?
Theadvantagesofmybusinessaremanyfold.Thefollowingarethemajorappeals.
a.Guaranteedauthenticgoodsofhighqualityandreasonableprice.Theelectricalapplianceandgoodsweofferareofhighqualityandreasonableprice.Anysecond-handgoodsorcopycatcellphonescannotbefoundinmymarket.wesellguaranteedauthenticgood.
b.Somepromotionalactivities.Wecanoffersomekindsoffreegiftswhenconsumersbuymygoods.Iftheyconsumeacertainamountofmoney,theycanregisterformembershipcards.
c.Betterafter-saleservice.Wewillofferbetterafter-saleservicefreeofchargetoensurethesatisfactionofmyconsumers.
2.Doesyourbusinesshavefactorswhichcouldmakeyourrevenuelowerorexpenseshigherthanwhatyouexpect?
a.Lowreputationofanewbrand.Mybusinessasanewcomertothisfieldlackshighreputationandbrandeffect,therearenotmanyconsumersatfirst.
b.Somecopycatelectronicgoodsofcheeperpriceandpoorqualityinothercompetitivefirms.Thesegoodswillattractconsumersalotatverylowpriceatfirst,mybusinesswillbeinapoorsituationwhichmakesmyrevenuelower.
Chapter3ProductsandPricing
1.Howistheproductsyouplantoofferisdifferentfromthoseofferedbyyourcompetitors?
a.Guaranteedauthenticgoodsofhighqualityandreasonableprice.Theelectricalapplianceandgoodsweofferareofhighqualityandreasonableprice.Anysecond-handgoodsorcopycatcellphonescannotbefoundinmymarket.wesellguaranteedauthenticgood.
b.Betterafter-saleservice.Wewillofferbetterafter-saleservicefreeofchargetoensurethesatisfactionofmyconsumers.
2.Howwillthepricingofyourproductsbedeterminedcomparedwiththoseofcompetitiveproducts?
First,marketingresearch.Collectingandanalyzingthepriceofcompetitiveproductstoidentifyconsumers’purchasingpowerandbuyingabilities.Thendecidethepricethatthecustomerscanaccept.
Alsowecansetthepricethesameasthoseofcompetitiveproducts,besideswewilloffersomelittlegiftsfreeofchargetoattractmorecustomers.
3.Couldtheuniquefeaturesofyourproductbeprotectedfromcompetitors?
Theuniquefeaturesofmyproductscouldbeprotectedfromcompetitors.Theelectricalapplianceandgoodsweofferareofhighqualityandreasonableprice.Anysecond-handgoodsorcopycatcellphonescannotbefoundinmymarket.wesellguaranteedauthenticgood.Alsowewillofferbetterafter-saleservicefreeofchargetoensurethesatisfactionofmyconsumers.Theuniquefeaturesofmyproductscouldbeprotectedfromcompetitors.
Chapter4ChannelsofDistribution
1.Howwillyourbusinessdistributetheproductstothecustomers?
a.Virtualstores.We’llalsorepresentmygoodsontheInternetbysettingupvirtualstores.Myconsumerscanmakeinquiries,checkspecifications,compareprices,placeordersandmakepayment,allthroughtheInternet,thusmakingmygoodsshoppingmuchefficientthanthetraditionalmodes.
b.Directselling.Homeappliancesandelectricalgoodscanbesolddirectly,whichinvolvessellingtoconsumersintheirhomesorworkplaces.Thisapproachcanfullydemonstratethefeaturesoftheproductsandenabledirectandone-to-oneconsultationtoprospectivebuyers.
c.Multilevelmarketing.MLMhasbeenpopulararoundthewouldinsellingawidevarietyofproducts.Hundredsofdownliners,thecommissionscanbequitesizable.
d.Supermarketsarelargestoresfeaturinglowprices,self-serviceandfastmovingmerchandisesuchasgroceries.
2.Couldyourproductsbedistributedmoreefficientlyandatlowercosts?
Myproductscouldbedistributedmoreefficientlyandatlowercosts.We’llrepresentmygoodsontheInternetbysettingupvirtualstores.Myconsumerscanmakeinquiries,checkspecifications,compareprices,placeordersandmakepayment,allthroughtheInternet,thusmakingmygoodsshoppingmuchefficientthanthetraditionalmodes.
Andhomeappliancesandelectricalgoodscanbesolddirectly,whichinvolvessellingtoconsumersintheirhomesorworkplaces.Thisapproachcanfullydemonstratethefeaturesoftheproductsandenabledirectandone-to-oneconsultationtoprospectivebuyers.
Alsoconsumerscanbuymygoodsinmysupermarket.Somyproductscouldbedistributedmoreefficientlyandatlowercosts.
3.Whetherthecostofdistributionofyourproductswillbeaffectedsubstantiallyifpriceofutilitiesortransportationgoupbyabigmargin.
Thecostofdistributionofyourproductswillbeaffectedsubstantiallyifpriceofutilitiesortransportationgoupbyabigmargin.Thenumerousfunctionstheutilitiesortransportationperform,physicaldistributionaccountsforalmost30%ofthetotalcostsofmarketing,ifpriceofutilitiesortransportationgoupbyabigmargin,thecostofdistributionofyourproductswillbeaffectedsubstantially.
Chapter5Promotion
1.Describethepromotionalmixforyourproducts.
Advertising:
productadvertisingandinstitutionaladvertising.
a.Internet.We’llrepresentmygoodsontheInternetbysettingupvirtualstores.Myconsumerscanmakeinquiries,checkspecifications,compareprices,placeordersandmakepayment,allthroughtheInternet,thusmakingmygoodsshoppingmuchefficientthanthetraditionalmodes.
b.Newspapersandtelevision.Putmygoods’informationonthenewspapers.ADsinthenewspaperscanbeclippedandsaved,alsotheyarelowincostandcanbepreparedandplacedwithinminimumtime.Televisionscanreachavastcaptiveaudienceofalltypeswithcolorfulandeye-catching.
c.Outdoorsalespromotion.Billboards,posters,tradeshowpublicityandelectricdisplaysarethemajorformsofoutdooradvertising.
2.Estimatetheamountofmoneythatwillbeallocatedforpromotionduringthefirstyear.
Wewillspend30%ofthemoneyonadvertisementsonthenewspapersInternetandtelevisions.Then40%ofthemoneywillbepayedforthesales-promotion,especiallyoutdoorpromotion,suchasbillboards,posters,tradeshowpublicityandelectricdisplays,toincreasecustomerawarenessandthesalesofafirm’sproductorservice.Allofthesalespromotioncanreachavastcaptiveaudienceofalltypeswithcolorfulandeye-catching.
Chapter6MoneyandBanking
1.Ithinkplasticmoneyisreallymoney.Moneyisakeyelementineconomicandbusinessactivitiesandhasbeenthethemeofmanywittyremarks.Tous,moneyisnothingbutthecurrencyofacountry.Toeconomists,moneyisasubjectforstudyand,forsomethingtobemoney;
itmustatleasthavethefollowingcharacteristics:
portability,divisibility,stability,durabilityandacceptability.
Firstofall,moneymustbelightinweightandeasytocarry.
Second,itmustbeeasilydivisibleintosmallerpartswithafixedvalueforeachunit.
Third,moneymustbestableinvalue,andthisisbestunderstoodintimesofinflation.
Fourth,moneymustbeabletostandthewearandtearofrepeatedtransactionsduringitslifeincirculation.
Last,formoneyofacountrytofunctionatall,itmustbemadelegaltenderforthatcountrybyitsgovernmentandbeacceptabletothepublic.Asplasticmoneyhasallthecharacteristicsofmoney,thoughit’snotmadeofpaper,itstillcanbecallerreallymoney.
2.Easytocarryandconvenient.
Creditcardhas"
VISA"
or"
MasterCard"
logo,inaforeigncountrycanbedirectlybrushcalorieofconsumption,andacashorcashwillfirstexchange;
Inaddition,bycreditcardbookingtheticketandhotel,telephoneorInternetshoppingandrentacarandsoonisalsoveryconvenient,andmightnothavethecashbenefits--becausecreditcardinadditiontodirectthebrushhasa"
preliminarylicense"
function;
Andthereisnonochangeinembarrassment.
Safe,Cleanandhealthy.
Asweallknowthatcashflowisbiggerandbigger,coinofbacteriaisonecanimagine,butinadditiontotheircreditcardisafewcashiertouched-evenifthecreditcarddirty,stillcancleandisinfection.
Facilitatefinancial
Creditcardbillinthefuturewewillreceiveapaperorelectronicmailformsofconsumptiondetailedbill,fromthebill,wecancleartheirowni