Investment Decisions (Research Paper Sample)

Long-Term Investment Decisions Name Professor name Course title Long-Term Investment Decisions The price of the product directly affects on the quantity demanded of a particular product. So, to keep the quantity demanded at a constant level price should be changed very carefully otherwise it will affect the quantity demanded. Low-calorie microwaveable food is a new type of food introduced in the market. The main attraction of the food is that it helps you in losing weight and also provides you the required amount of nutrition. A company who is selling such food should have to be very careful in setting the price because it will directly impact on the sales of the product. In the whole world no one likes to be fat which means that the demand for calories is inelastic (Gehlhar, M., &Regmi, A). So, when the prices of goods increase their demand will fall down. But the income elasticity shows that everyone wants to eat good food (calorie). For this the Company should have to make a plan to make its product competitive in the market. They can achieve their goal with proper advertising and marketing. Marketing will help them in conveying their message to the consumers. In this way they will know that how healthy the food is no matter how much expensive it is because if you have good health then you have everything. A low-calorie microwavable company can only make its products inelastic in respect of price by making a good marketing plan because when the consumer will know the importance of food they will not care about the price. Eating healthy food will become their habit and in this way the Company can increase the prices of its products without affecting the quantity demanded. Government plays an important role to maintain the quality standards for the food because only hygienic and healthy food can make people healthy. For this government has made many polices to maintain the quality standards of the food. Government has separate polices, rules and regulations for manufacturing food, storing food, the equipments which are used for making food and the people who handle all these procedures. For the manufacturing of food items, government strictly wants to maintain the quality standards which mean that all the items which are used in the cooking of food should be fresh, hygienic and healthy. Secondly, the government also pays great attention to the equipments which are used in the making of food. For example food service equipment must meet NSF International standards, hand wash sink with soap, fingernail brush, single use towel, refrigerators which can maintain the food at 41 F or below, freezers must maintain food in frozen state, all single-use things like plastic plates and glasses should be used only once. All these policies are regarding the production of the food items by a company(O'Brien, L., & Lemieux, R. 1993). There are also some policies regarding the employees of the company. In the recent years, government is very strict regarding the wages of the employees. Government has set minimum wage rate of the employees which is compulsory for the company to pay and if any company fails to do so or pay the employee below the minimum wage rate it can sued by the employee. There are also some policies regarding the safety of the employees which mainly includes insurance policy, proper suiting for the work and workplace safety policy. All these policies are beneficial as well as harmful for the microwavable company. These policies will help the company to maintain the quality standards and all other companies who are working in the same industry will have to follow the policies of the government. Such policies are also harmful for the company because by following them the cost of production will be increased and this will definitely increase the price of the product(Senauer, B.,1990). High prices mean low sales but the company can only deal with such a situation by making the consumer satisfied. The company has to increase the demand of the product by effective marketing. Once the customer is satisfied, they will purchase the product at any price. Following the government polices also increase the trust of the general public on the company and in this way the sales can be increased to great extent. Involvement of government is very important in the economic issues of the country. Government made certain policies and regulations for the fairness of economic matter. In almost all business types, there are ways to hide or override the economic matters but with proper check and balance by the government such things can be avoided. It is the responsibility of the government to impose the policies on the market so that the economy of the country can become strong. Policies regarding economic matters vary from business to business and for low-calorie microwavable food. The food company will benefit from the rules and regulation imposed by the government and these rules and regulation will help the company to secure their future. The government intervention in these matters will also help them to legalize their product and techniques. The patent rules also apply to such company and in this way; no other company will be able to produce such products for some years(Weston, J. F., & Chiu, S.,1994). The patent years are also determined and after that, the company can sell the patent to other companies and everyone can manufacture the product. In the 19th century the farmers and other small businessman asked the government to negotiate the terms of business on their behalf and this helped them to reach a mutually beneficent stage. The government of US was very helpful in this matter. The government intervention is not always favorable for the companies. The companies with a small budget should not legalize the product because it will be very costly for them. The companies that are starting the business at a low scale should use other means to launch the product. The nature of the product also plays an important role in the decision making for the government intervention(Connor, J. M., 1994). Sometimes when the technology is breakthrough and the company does not have the necessary money to legalize the product then they can also take help of the government. The government designs a good package for them in return of the patent rights to the product. By this way, the company will be liable to hand over their research to the government in the stated years. The stated years can range between 5 and 10. With the government favoring different companies, a monopoly in every sector of the business will be made. New companies will not come in the market and the economy of the country will be disturbed. Such policies not only help in regulating the economy but also help in keeping tabs on the progress of the companies, preventing illegal practices from being carried out. The companies can face different types of problems when expanding the business. The business of the company has to be taken at a new high level and this will require a lot of man power and advanced facilities. The problems should be addressed firs by the company, if they want to increase their business. Major problems faced by the company when expanding are: Manpower: When you are increasing the plant or the business, you are going to need a great man power and the company can overcome these problems by the help of many things. The company is unsure about its future as whether they will run successfully as a larger enterprise or not. So, the company can hire the employees at a contract basis(Fouraker, L. E., &Stopford, J. M. ,1968). This will help them to analyze the situation of the market and they will not have any obligation to the employees once the contract is over. Technology: Technology serves as a major game changer for a company. It not only helps it to accelerate its production process but at the same time provide with the same quality. When expanding to a huge extent, you are going to need ...