What was morita drawing-what did he know about costing

Reference no: EM13687267

In 1955, Akio Morita, founder of Sony, came to the U.S. to drum-up sales for a new product his company had recently developed. Morita anticipated that Sony would sell approximately 30,000 transistor radios per year to get started. A chain store executive was stunned when Morita spurned his offer to immediately buy 100,000 units. Morita politely sketched a unit costing diagram to describe why 5,000 was too small of an order however 50,000 units was at the same time too big.

1. How is timeframe important to your explanation?

2. What was Morita drawing and what did he know about costing that the chain store representative was overlooking? Be sure to explain or chart the shape of Morita's costing sketch in your answer.

Reference no: EM13687267

Questions Cloud

Development of the internet has changed the market structure : Discuss how the development of the Internet has changed the market structure in which companies operate. Remember that, for purposes of this class, we are assuming most firms can be categorized as being in perfect competition, monopolistic competitio..

Studying marketing cost and sales volume : Temperance, Inc. is studying marketing cost and sales volume, and has generated the following information by use of a scatter diagram and a least-squares regression analysis. Temperance is now preparing an estimate for monthly 20000 units on t..

Identifiable net assets : Identifiable net assets

How much money would you have to invest today : How much money would you have to invest today at 8 percent APR compounded monthly to accumulate the sum of $150,000 in 35 years? (Round your answer to two decimal places)

What was morita drawing-what did he know about costing : In 1955, Akio Morita, founder of Sony, came to the U.S. to drum-up sales for a new product his company had recently developed. Morita anticipated that Sony would sell approximately 30,000 transistor radios per year to get started. What was Morita dra..

Relationship in monetary policy-national economic activity : The Open Market Committee of the Federal Reserve met recently to decide actions regarding monetary policy. One of the twelve Federal Reserve branches has asked you to write an article for its regular newsletter for main business clients. What action ..

Explain how elasticities must be used in pricing decisions : Dakota Publishers prints coffee table photo books of the Great Plains and mountain states. The marketing manager generally prices books at $35 each and sales average 4,000 copies per month. Last month, she had a sale and priced volumes at $22.50 each..

What is globalization and what are its dimensions : What is globalization? What are its dimensions? Briefly explain how these two groups of forces drive globalization: the worldwide reduction of tariffs, market liberalization and economic integration on the one hand and advances in technology on the o..

Steps of persuasion : Include all the necessary "evidence" for the reader to reach the expected conclusion in each argument in the paper - Clearly define your position and supporting evidence.

User Account

All Pages