In the fall of 1993, a struggling realtor in Oregon named Jay Sorensen patented a cup sleeve. He’d been driving his daughter to school, coffee in hand, and burned himself. He figured there had to be a better way. Battle with Starbucks He got into a battle with Starbucks, which later came up with a… Read more »
Posts Tagged: Variable Costs
How Low Can the Costs Go?
India has developed the world’s cheapest laptop – a touchscreen device which resembles Apple’s wildly popular iPad but will cost just £23. The prototype was unveiled this week by Kapil Sibal, the country’s human resource development minister, who said 110 million Indian schoolchildren would be the first recipients. Questions: 1. Find the current exchange rates and calculate… Read more »
New Revenue Recognition Standards on the Way for Contractors
Contractors should be educating themselves on the impact of the new proposed revenue recognition standards and the recently published (June 24, 2010) exposure draft pertaining to revenue from contracts with customers. Public comments are due October 22, 2010, and it is expected the standards will be finalized in 2011. Questions: 1. What are some of… Read more »
What Does It Cost To Make An Apple IPhone4?
According to market research firm, Apple’s iPhone 4 wireless handset components cost about $187.51. The iPhone 4 sells for $199 and $299. The most expensive component is the LG display that costs $28.50. According to the consultant, the iPhone has typically hovered around the $170-to-$180 cost range because Apple seems to be trying to hit… Read more »
Corporate Sustainability Can Mean Financial Reward, Despite Extra Costs
Tracking efforts in companies like Wal-Mart, Hewlett-Packard and Clorox, authors Ram Nidumulo, C.K. Prahalad, and M.R. Rangaswami, identified a five-stage process that will benefit companies as they navigate through the adoption of green business models. In the article, the authors contend that early adopters of this process will develop competencies that will be difficult for… Read more »
How to “Regroup” During a Recession
Chris Mittelstaedt, owner of The FruitGuys, has turned his local business into a national operation by changing strategy during the recession through investment in technology and the restructuring of his operations. Required: 1. Based on the video, what were some of the things that Chris did to cut costs? What disaster almost bankrupted his company?… Read more »
Recessionary Cost-Cutting Revisited
In an effort to keep their heads above water in recessionary times, many companies ignored their traditional strategic plans. They grabbed at any transactions that were above variable costs in efforts to cover fixed costs. Moving away from value-based pricing, they relied on cost-plus pricing. Unfortunately, as this article mentions, cost-cutting can only go so… Read more »