Four Star Motorsports-Pricing Essay Example

Four Star Motorsports-Pricing Paper Deliverable 3- Four Star Motorsports Course: 07360, Pricing Strategy - Student: Jing Wang, Yu-Wen Chu * Using regression, estimate the demand curves for each type of tire in each type of demand season (low, medium, high). I recommend that you use Excel to do the regressions. (Note: demand for the two sizes of tire are independent from one another). Yokohama Winter Rally Tire Demand Curve | WR 26 155/65R13| WR 26 185/65R14| Normal Demand| Q=106. 4-0. 544P| Q=104. 8-0. 448P| High Demand| Q=86. 28571-0. 33143P| Q=94. 714-0. 3314P| Low Demand| Q=155. 2-0. 704P| Q=132. 8-0. 704*P| * What is the optimal â€Å"one-price† policy for Sprongl’s rally tires if he sticks with his â€Å"base prices† for the entire year? (Assume his goal is to have no residual inventory and to maximize total revenue). Tire Type| WR 26155/65R13| WR 26185/65R14| Inventory| 280| 265| | | | Price| $150. 82| 159. 8190703| | | | Period 1| 49. 02| 20. 29| Period 2| 24. 35| 33. 20| Period 3| 36. 30| 4 1. 61| Period 4| 24. 35| 33. 20| Period 5| 36. 30| 41. 61| Period 6| 24. 35| 33. 20| Period 7| 36. 30| 41. 61| Period 8| 49. 2| 20. 29| | | | Demand| $280. 00| 265. 00| | | | | | | Revenue| $42,229. 98| $42,352. 05| * If Sprongl elects to use â€Å"dynamic pricing† by changing prices for each tire in each season, what are the optimal prices if his estimated demand curves are estimated correctly? (Note: there is no global optimum solution for this in Solver but several â€Å"local optima† that are similar. I recommend that you calculate the optimum pricing for each tire separately, and then sum the total revenue from each). * What are the pros and cons of fixed and dynamic pricing in this situation? Explain your reasoning. Fixed pricing: Pros: 1. Fixed pricing establishes optimal â€Å"one-price† policy for Sprongl’s two different rally tires. There will be neither haggling nor competition from other period’s price. 2. There will be no arbitrage so that Four Star Sports can easily predict and monitor the inventory. Cons: Resulting either in money left on the table or lost sales Dynamic Pricing: Pros: http://news. wustl. edu/news/Pages/4382. aspx http://smallbusiness. chron. com/dynamic-pricing-strategy-5117. html http://faculty. insead. du/popescu/ioana/Papers/PopescuWu. pdf http://www. meiss. com/download/RM-Maglaras-Meissner. pdf 1. Dynamic pricing strategy enables Four Star Motorsports maximize the profit margin and maximize the revenue from *** to *** Cons: 2. The dynamic pricing needs comprehensive data and testing to work well, in this case, we only had very limited data to find our dynamic pricing strategy, which might not reflect the true demand curv e. 3. It also requires advances in point-of-sale technology and widespread adoption of electronic labels for inventory management. We will write a custom essay sample on Four Star Motorsports-Pricing specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Four Star Motorsports-Pricing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Four Star Motorsports-Pricing specifically for you FOR ONLY $16.38 $13.9/page Hire Writer This may increase the cost dramatically. Considering Four Star Sports is a family business, and their revenue may not be high enough to support this expense on new technology. 4. Customers might feel unfair that the same products are charged at different prices. 5. The dynamic pricing may lead to arbitrage, customers with high price elasticity may shift to the low price period to purchase the rally tires; On the other hand some smart people may purchase more than they need during the low price period then to sell at high price period. These will change the demand curve and the competition environment dramatically and influence the inventory management. 6. Dynamic pricing strategy suits frequent purchased consumer goods market better, because the customers’ purchase decisions are heavily influenced by the past observed price. In this case, customer may not purchase rally tires very often, thus the history price has less influence on their decision making.

4 Important Qualities of Women Leaders

4 Important Qualities of Women Leaders When it comes to leadership, does gender matter? Is there a difference between women leaders and men who lead? If so, what are the unique qualities of female leadership that the most effective women leaders possess, and are they unique to women? Caliper Study In 2005, a year-long study conducted by Caliper, a Princeton, New Jersey-based management consulting firm, and Aurora, a London-based organization that advances women, identified a number of characteristics that distinguish women leaders from men when it comes to qualities of leadership: Women leaders are more assertive and persuasive, have a stronger need to get things done and are more willing to take risks than male leaders... Women leaders were also found to be more empathetic and flexible, as well as stronger in interpersonal skills than their male counterparts... enabl[ing] them to read situations accurately and take information in from all sides... These women leaders are able to bring others around to their point of view... because they genuinely understand and care about where others are coming from... so that the people they are leading feel more understood, supported and valued. Four Qualities of Women Leaders The Caliper study findings are summarized into four specific statements about womens leadership qualities: Women leaders are more persuasive than their male counterparts.When feeling the sting of rejection, women leaders learn from adversity and carry on with an Ill show you attitude.Women leaders demonstrate an inclusive, team-building leadership style of problem-solving and decision making.Women leaders are more likely to ignore rules and take risks. In her book Why the Best Man for the Job is a Woman: The Unique Female Qualities of Leadership, author Esther Wachs Book examined the careers of fourteen top female executives- among them Meg Whitman, President, and CEO of eBay- to learn what makes them so successful. What she discovered echoes the Caliper study, including a willingness to reinvent the rules; an ability to sell their visions; the determination to turn challenges into opportunities; and a focus on high touch in a high-tech business world. Conclusions This evidence that the leadership style of women in power is not simply unique, but possibly at odds with what men practice, begs the question: Do these qualities have value in the marketplace? Is this type of leadership welcomed by society and by the public and private sector? Dr. Musimbi Kanyoro, the World YWCA Secretary-General, says attitudes toward leadership are changing, and what women offer is essential: Domination as a leadership style is becoming less and less popular. There is a new growing appreciation of...those traits that women use to keep families together and to organize volunteers to unite and make change in the shared life of communities. These newly admired leadership qualities of shared leadership; nurturance and doing good for others are today not only sought after but also indeed needed to make a difference in the world....A feminine way of leading includes helping the world to understand and be principled about values that really matter. Sources:   Women Leaders Study: The Qualities That Distinguish Women Leaders.  Caliperonline.com.Kanyoro, Musimbi. Challenges to Womens Leadership. Speech in honor of YWCA of Salt Lake centennial celebration. 13 July 2006.Are Women Natural Leaders, and Men†¦the Opposite? KnowledgeWharton, University of Pennsylvania 8 November 2000.