• Submit a MS Word or document file that includes your answers to each
• Keep answers concise but be sure to provide enough detail to convey
1. Give either a market example or your personal experience for each
of the following:
a. Loyalty Program b. Barrier to Entry
Please be sure to mention the competitive force and if it is high or low
from the perspective of your example. Please provide unique examples;
avoid those used in the text and class.
2. Give either a market example or your personal experience with a
core competency for a business.
3. In the context of a break-even analysis, show your work for the
I am convinced that a pocket-sized durable selfie drone will be hugely
popular on kickstarter. I estimate that initial fixed cost for the 3D
printer, automated parts assembly unit, and process control system will
cost $55,000 to implement. My cost estimate of motors, blades, internal
circuitry, batteries, and overhead for each pocket-sized durable selfie
drone is $157; boxing and shipping to each customer will be another
$27. Given market conditions, I believe that each pocket-sized durable
selfie drone can sell for $279!
a. How many should I sell at minimum?
c. What can I do to improve my campaign?
4. We discussed the hierarchical structure of organizations. Give a
relatable example or your personal experience of how information or
technology can “flatten” an organization.
• Submit an MS Excel or spreadsheet file that includes the
calculations and graphs requested.
• In the spreadsheet itself, clearly provide any explanation that you
feel is necessary.
• Please adhere to the spreadsheet design guidelines provided in the
America is awash in natural gas, but in parts of the country there’s
hardly a drop to burn. 1
Janus Utilities Incorporated (JU Inc.) supplies natural gas to
commercial customers. One geographic service area (Area 12) is located
close to a prolific gas field. Another geographic service area (Area
23) is isolated from this source. Historically, JU Inc. has set two
different prices for each service area:
• MMBtu = one million British Thermal Units
• Previously, JU Inc.’s price for Area 12 was $5.28 per
MMBtu; its cost was $3.79 per MMBtu.
• Previously, JU Inc.’s price for Area 23 was $6.09 per
MMBtu; its cost was $4.59 per MMBtu.
• JU Inc. bills each month.
In Area 12, the cost per MMBtu now dropped substantially down to $2.64
and is forecasted to remain at this cost due to prolific supply. In
Area 23, the cost per MMBtu is forecasted to remain the same.
JU Inc. is proposing to set the same price for both geographic areas
(ie. 12 & 23) to promote consistent demand across regions. JU
Inc.’s proposal includes setting a baseline consumption for its
commercial customers of 300 MMBtu per square foot per month. Usage that
does not exceed the baseline calculation will be charged $4.75 per
MMBtu for the month; any usage exceeding the baseline
calculation will be charged $4.25 per MMBtu for the month.
You must prepare an analysis of how each customer’s monthly charges will
change under the pricing proposal. Ideally, profitability will remain
Create a spreadsheet that shows the monthly charges under the previous
monthly price and cost, the proposed monthly price and updated cost, the
dollar amount of change with the proposed pricing, and the percent of
change with the proposed pricing. Use the data in the spreadsheet.
Be sure to follow the spreadsheet guidance provided in the last two
One hint: the baseline calculation = (Square Foot Commercial Space) *
(Baseline per sq. ft. per month)
Please complete the table using an “if” formula where possible with
reference to values (ie. not embedding static numbers). Create a graph
as well to compare the percent change for each customer. It will provide
JU Inc. a good visual of how much the proposal will impact each
customer. Use customers as the X axis (horizontal) and percentages as
the Y axis (vertical).
Lastly, Interpret the results. Does this make sense for JU Inc.? Why
or why not?
Layout for your Reference (graph uses example data; it does not provide