Hiring, Market Research, Pricing, and Cost Analysis
Hiring Process at Generation Elect
Vacancy Identification and Job Description
- Job analysis
- Job description
- Job specification
- Job advertisement
- Job applications
Selection and Hiring
- Interviews
- Selection of the best applicant
- Job offer
- Vacancy filled
Importance of Skilled Workers for Generation Elect
It’s important for Generation Elect to recruit skilled construction workers since they will be able to build the dome properly, matching the quality required. This will help the business maintain its good reputation in the area. Skilled workers will also save time, as they can build the dome quickly and solve electricity problems efficiently.
Advantages of Trade Union Membership for Construction Workers
The fact that all construction workers are members of a trade union may be an advantage to Generation Elect. It may be beneficial as it is easier for employers to negotiate with a trade union representative than with each individual worker. This can lead to:
- Clearer discussions
- A better working relationship between management and the union
- Easier agreement on changes to working conditions
- Less time wasted in arguments
- Fewer industrial disputes, since better relationships are established between management and employees
Market Research Methods
Primary Research
Advantages
- Provides detailed qualitative information
- Consumers’ opinions can be obtained
- Likes and dislikes about the product can be obtained
- Information is up-to-date
Disadvantages
- Questions may not be well thought out, therefore answers may not be accurate
- Time-consuming
- Expensive
- Interviewer bias could lead to inaccurate results
- People may not give their true feelings so as not to cause offense
Secondary Research
Advantages
- A lot of information is readily available
- Can be cheap to obtain
- May not be time-consuming
Disadvantages
- Information may be out-of-date
- Gathered for some other purpose
- Information may not be accurate
- Specialist market research agency sources of secondary information can be expensive
Pricing Strategies
Price Skimming
A pricing strategy where a high price is set for a new product or service on the market.
Other Pricing Strategies
Cost-Plus Pricing
Advantages: Easy to apply, and you are sure your costs are covered.
Disadvantages: You could be undercharging, and hence potential profit could be lost.
Competitive Pricing
Advantages: Your prices are competitive, and so sales might be high.
Disadvantages: Your competitors are not nearby, and so you could charge higher prices and make more profit.
Promotional Pricing
Advantages: This would encourage people to try the new activity.
Disadvantages: Sales revenue will be lower.
Penetration Pricing
Advantages: Encourages people to try the new activity.
Disadvantages: Prices are lower, and therefore sales revenue will be lower.
Psychological Pricing
Advantages: Prices could be set high to encourage exclusivity of the new activity.
Disadvantages: It could put people off using it. The price could be set at $…99 to make people think it is cheaper than it really is.
Cost Analysis
Fixed and Variable Costs
Fixed costs are costs that do not vary with output (e.g., rent, salaries).
Variable costs vary with output (e.g., raw materials, direct labor).
Impact of Higher Costs
- The break-even point may be at a higher level of output, creating a problem of increasing sales.
- If costs are higher, then profits may be lower, leading to unhappy shareholders or less retained profit.
- To keep profits the same, they may have to increase prices, which could reduce sales.
- Lower profits may make it harder to raise more share capital, requiring alternative, possibly more expensive, ways of raising capital.
- If costs are higher than expected, the company may become overdrawn, leading to difficulty in financing cash flow problems.
Comparison of Boating and Fishing Activities
- Expenses are higher for boating.
- The costs of running the activities are higher for boating.
- Sales revenue is similar for both activities.
- The price is lower for fishing.