BUS599 - Integrative Project, Mod 3 SLP Essay Example | Topics and Well Written Essays - 1250 words

BUS599 - Integrative Project, Mod 3 SLP - Essay Example The X7 tablets have been designed for those consumers who are concerned about both the performance as well as the price of these tablets. The company performs a CVP analysis with the aim of making valuable decisions in order to determine its sales volume of the aforementioned products along with profit margin is an effective manner (CALIFORNIA STATE UNIVERSITY, 2013) This discussion will emphasize upon the strategies that need to be formulated as well as implemented in relation to prices and research and development (R&D) for enhancing the performance of the company. Moreover, the formulation of the strategies that implemented by Clipboard on the basis of Cost-Volume-Profit (CVP) analysis will also be discussed. Time Warp 2 and CVP Analysis In order to determine the revised strategy comprising the prices, R&D allocation and any product discontinuations for different ranges of tablets of the company, the strategy of ‘Cost-volume-profit’ (CVP) analysis can be taken into co ncern. In this similar concern, the strategy of CVP analysis is regarded as a tool that is chiefly used for planning as well as making valuable decisions. Moreover, it is considered as a powerful instrument for devising future plans as well as developing strategies for increasing the sale of the products of the company. One of the major advantages of this tool is that it will enable the company to make appropriate decisions as well as plans for developing the three products in the business market at the beginning of the initial year i.e. 2012 (The McGraw-Hill Companies, 2011). The strategy of CVP analysis has been generally used for calculating break-even point as well as determining the prices for attaining substantial profits by increasing the sale of the products (Cambridge Business Publishers, 2005). Thus, with the assistance of CVP analysis, the company is required to formulate strategies as well as plans in order to improve the profitability as well as productivity in comparis on with Joe Schmoe. The profit of Joe Schmoe has been identified to be amounted to $ 1,431,666,391 for the four years i.e. 2012 to 2016. Conversely, the main focus of Clipboard is to formulate effective strategy with the objective of obtaining profits in excess of Joe. Product X5 The tablets X5 have been in the market for five years and it is considered to be in a stage of maturity. The X5 products have been quite price sensitive that assists the company in meeting the demands of the consumers who are price conscious. In this respect, if the prices of X5 products are reduced, then the sales of these products will enhance in an effective manner. In this regard, the prices of X5 products need to be reduced in order to increase sales. Moreover, the value of price as well as R&D along with target profit are required to be taken into concern in CVP calculator with the objective of determining sales volume for accomplishing desired target profits. In this similar context, it can be affirm ed that the CVP analysis depicts that the product X5 will be offered in the market for only two years and then it will be discontinued for the reason of acquiring substantial profits. This is owing to the reason that the company may experience loss in continuing the selling X5 product in the market. The CVP analysis of the company for X5 product is performed below. Product X6 The product X6 has been in the marke