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Gb540 Unit 5 Assignment 2

Unit 5 ASSIGNMENT2SamsungIn 2015, Samsung reported an operating profit of 26.41 trillion dollars. Facing globaleconomic problems, including a sharp fall in oil prices, the company’s fourth quarter earnings fell,as the components side of the business was impacted by weakened prices for DRAM chips andLCD panels due to the overall softer demand in the IT market. Samsung is among the world’sleading innovative companies and that is just one of their strengths. Since the company is aleader in innovation, it has a sustainable business advantage and they have made this anobsessive mission to maintain that leading position. The aim is to alwaysstay ahead of thetechnological and innovation curve.They aim to dominate competitors by being the first to offerthe latest products to the market. There are several economic indicators that Samsung has to consider. The first is theNation's international trade deficit in goods and services. It increased to $43.4 billion inDecember as exports decreased and imports increased. The balance of payments is theinternational balance sheet of a nation that records all international transactions in goods,services, and assets over a year. That is why the balance of payments is usually under theInternational Transactions Accounts in national statistical data. The balance of payments issimilar to balance sheets of companies that report transactions such as goods bought and sold, orassets borrowed and acquired. Samsung has studied all of the components of the balance ofpayments, they have found that it serves as the most important statistics in the open economysince it summarizes exactly how the domestic economy interacts with the rest of the world.

Page 2McDonald’s Marketng PlanMcDonald’s Marketing Plan4.0 Financials4.1 Break-even AnalysisDuring the first year of the grilled McFish item, McDonald’s expects to sell an estimate of 19,440,000 of the new menu item. This figure is based on an average sale of $6.95 per sandwich/wrap and based on an 18% volume in sales as the current fish sandwich sells 300 million yearly. The variable expense of the new grilled menu item is $3.15 which means that McDonald’s would have a net revenue of $3.80 per sandwich. The total net revenue for the first year would be an estimate of $73, 872,000. This figure is based on McDonalds capturing their current market demographics as well as adding new target segments such as this healthier food item will lead the fast food industry by expanding to the more health conscious market segments.Fixed costs for the first year will be high as it is in most fast food restaurants. However, even with the fixed costs of $40,000,000; McDonald’s will still have a profit in the first year of $33,872,000.First Year SalesTo±alPer Uni±Sales (19,440,000 i±ems)$135,108,000$6.95Less Variable Expenses$61, 236,000$3.15Prof± Margin$73,872,000$3.80Less Fixed Expenses$40,000,000Ne± Operatng Income$33,872,000 Based on the first year sales, McDonalds would have already broken-even and have experienced a profit for the year. It will take McDonalds 7 months from the launch date before they finally break even. During month 6, the loss would be $-3,064,000, but during month 7 the company will not only break even, but will also see a net income of $3,092,000 based on the charts below:Month 6 SalesMonth 7 SalesLess Variable Expenses$35,721,000$3.15 To±alPer Uni±Sales (9,720,000 i±ems)$67,554,000 $6.95 Less Variable Expenses$30,618,000 $3.15 Prof± Margin$36,936,000 $3.80 Less Fixed Expenses$40,000,000 Ne± Operatng Loss($3,064,000)