Production and Cost Functions of Low-Calorie Microwaveable Foods The challenge to the low-calorie, microwaveable food manufacturing companies is to determine how to choose the constellation of inputs that minimize the cost of producing the food products. This cost-minimization challenge has different facets depending on whether the period is for short-run or long-run production (Besanko & Braeutigam, 2010)
7% of the market share of the single-serve frozen dinner market, with Healthy Choices (Con Agra) holding a 10.8% share (Newman, 2012)
Shulman (2011) found that grouping a product with higher priced products causes consumers to think of it as being more expensive and grouping a product with lower priced items suggests a cheaper product to consumers. Pricing may be critically linked to product assortment and promotion, such that price judgments and inclinations to buy products are effected by situational factors (Shulman, 2011)
2 points for Healthy Choice (Newman, 2012). Factors Influencing Changes in Market Structure for the Food Industry The food industry, along with any number of other industries considered today, has experienced substantive pressure for takeover activity (Weston and Chui, 1996)
In many cases, outsourcing also allows firms who focus on some narrow niche to concentrate on their areas of expertise and let others handle other business functions they are not as comfortable with (Lesonsky, 2012). One disadvantage to outsourcing internationally in developing markets is that these countries often lack the judicial system to protect property rights (Goldberg, 2009)
has grown to one of the world largest companies and still relies on outsourcing of production to manufacture its consumer goods (Lo, 2011). In many cases, outsourcing also allows firms who focus on some narrow niche to concentrate on their areas of expertise and let others handle other business functions they are not as comfortable with (Lesonsky, 2012)
Apple Inc. has grown to one of the world largest companies and still relies on outsourcing of production to manufacture its consumer goods (Lo, 2011)
In addition, the competitive company has authority of the market that is equivalent to a monopoly. This is in the sense that the high profit levels are the net loss of consumers and surplus of the producer (Arnold, 2008)
One other element is that it is significant to make certain that the business has several suppliers, just in case one becomes bankrupt or ceases to be in operation. Lastly, one significant element is that the company ought to have sufficient capital (Keat et al
The main aspect is to go on being in the minds and considerations of the consumers, ensuring the products keep being innovative with quality foods and making certain that the price set is one that is competitive. This action will not only sustain the prevailing loyal consumers, but at the same time, also appeal to new consumers (Mudida, 2003)
In addition, it indicates that even during the course of tough times, the company has the capacity to spend on marketing and advertising. In turn, this will let the consumers have the perception that the company is not restraining on expenses (McGuigan, 2014)
In order to remain profitable, the company has to set a price that is higher than its average total cost at the maximum level of output. The price set by the company ought to able to incorporate the average cost in the short-term as well as be able to cover the average total cost in the long-term (Uslay, 2012)