Soft Shell Purchases Motorcycle Helmets Which It Custom Paints and Sells

question 178

Essay

Soft Shell purchases motorcycle helmets which it custom paints and sells to motorcycle dealers and repair shops worldwide. Sales are expected to be $3,000,000 in June, $5,000,000 in July $6,000,000 in August and $3,000,000 in September. Soft Shell sets it prices to average 35% gross profit on sales revenue. The company wants to keep a minimum inventory of $500,000 plus 10% of the next month's cost of goods sold.
Required:
Prepare an inventory, purchases, and cost of goods sold budget for the months of July, and August.

Describe the role of competition and cooperation within a business ecosystem.

Understand the significance of forecasting and innovation in business strategy.

Grasp different Internet business models and their basis of competitive advantage.

Know the components of a SWOT analysis and its role in strategic management.

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Definitions:

Rational Persuasion

A method of influencing others through logical arguments and factual evidence to convince them of a viewpoint or decision.

Chinese Managers

Managers located in China or of Chinese descent, often noted for their unique management styles influenced by cultural factors.

American Managers

Managers in the United States who oversee business operations, often characterized by a focus on individualistic leadership and decision-making styles.

National Culture

Is a set of shared values, beliefs, traditions, and behaviors that are characteristic of a particular country or nation.