Question

"As the marketing vice president of her firm, Janice is considering implementing a companywide pricing policy that all products must achieve a target profit margin of 15 percent so the firm can achieve its overall growth objectives. What type of company objective is this?"

Answer 1

Answer: Profit - orientation

Explanation: The main objective of this company is to make a profit. A profit oriented company is a type of pricing strategy that entails intentionally setting prices for goods that will guarantee that profits will be earned. This is done by taking the cost of making the product, and then adding a profit to the product before selling it. In this way the company earns growth rate over time.

In this scenario Janice has set a company wide profit margin of 15%. This means that all of her products will be sold at cost price, plus a 15% profit added on to the product. This will ensure that Janice will make money on every sale she makes, which in turn leads to the company achieving their overall growth objectives.