Answered Essay: 1.DESCRIBE and then COMPARE the effects of lowering costs and increase in sales (use the

1.DESCRIBE and then COMPARE the effects of lowering costs and increase in sales (use the same % change) on:

a)Profit

b)ROA.

Describe how would you address the 5R’s for a personal or a professional acquisition (from the buyer’s perspective

Expert Answer

Answer:-

5R’s From Buyers Perspective:-

  1. Right Cost is the essential component from buyer’s perspective. If value is greater than Right Cost than one is going to purchase even if Right Cost amount is higher than market price.
  2. Right Availability is another factor other value, if the required product or service is niche than availability becomes crucial factor other wise it is less crucial from buyer’s perspective.
  3. Right Place is getting eluded is what one would imagine but the product or services available at required location is there then buyer need not have to worry and if it is not present in said location then it is needs to be made available and additional cost is present. Here, the location is important as certain business may not deliver at remote location.
  4. Right Quality is important as it would impact value extracted from product or service, hence quality is one aspect which one need not forget while buying.
  5. Right Quantity is the balancing act for present and future need buyer has to make. If the product or service is niche and requirement is for future too than quantity ordered should be more than needed as niche product price increases over time but if requirement is only for present than quantity needed is required to be ordered. If product or service is not niche than quantity can be ordered as per need or less than need as more competitor would enter market and price point will go down over period of time.
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