Drama, Film, and Mass Communication homework help
Drama, Film, and Mass Communication homework help. This is a paper that is focusing on the Cornering the Tennis Ball Market new manufacturing process scenario. The paper also provides additional information to use in the writing of the assignment paper. Below is the assessment description to follow:,Cornering the Tennis Ball Market new manufacturing process scenario,Cornering the Tennis Ball Market, It is late 2020 and a friend of yours has invented a new manufacturing process for producing tennis balls. Your friend has offered to make you a partner in the business but has asked you to perform an in-depth market analysis for him in return. She has already done some preliminary data gathering and market analysis, key elements of which are below.,§ The primary advantage of the new tennis ball is that it is less expensive to produce than the current top-of-the-line ball manufactured by Slazenger. It is estimate that the full variable cost for the new ball will be £0.52 per ball, comparing to £0.95 for Slazenger balls. Variable costs includes all costs of production, marketing, and distribution, which vary with output. ,Variable costs, exclude the cost of plant and equipment, overhead, etc., § Because the manufacturing process for the new ball is unlike known production methods, the only realistic alternative is to build a specially designed plant to produce balls. Your friend has determined that she needs £4.7 million in initial capital. She figures that if she can make a good case, she can get a 20-year loan at 6% APR from the bank and start making tennis balls a year from now (i.e. 2021),Cornering the Tennis Ball Market new manufacturing process scenario,§ Running costs for the manufacturing plant are to be £255,000 during the first year of operations., § According to the industry trade association, it is expected that 10.9 million balls will be sold by the end of 2021. This number is to grow 9.8% per year for the next 10 years and then level off (i.e. no longer increase)., § The only reasonable way for your friend to make the business work is to sell balls to retail outlets. Retailers then typically add a 100% mark-up to the price.,§ In order to assess demand for the new balls, your friend got 200 tennis players to use the new ball over a three-month period and then asked them which ball they would buy, either the new ball or a Slazenger ball for various theoretical prices. Based on this, the following formula is the derive for calculating percent market share of the new ball:,MS = (44.971 x (PSB / PNB)) ‒ 24.867,§ Where MS is market share, PSB is the retail price for Slazenger balls and PNB is the retail price for the new ball. To ensure market share is the range 0-100, the price ratio for Slazenger balls versus new balls (PSB / PNB) should be no less than 0.6 and no more than 2.8, implying a minimum retail price to the consumer of £0.90 assuming that Slazenger keeps the retail price of their balls at £2.50., § Cash flows, made up of (i) project revenue from ball sales to retailers, (ii) variable costs of manufacturing balls, (iii) plant running costs, and (iv) bank loan repayments, are to occur at the end of each year. ., ,Attachments,Click Here To Download,
Drama, Film, and Mass Communication homework help
