Thomas Money Service Business Proposal Essay

1420 words - 6 pages

Thomas Money Service Inc. established in 1940 with the intent of providing small loans for household needs. The success of the company has led them to expand their services which include business loans, business acquisition financing, and commercial real estate loans. In 1946 Thomas merged with a company that specialized in equipment financing called Future Growth Inc. This merger, although was a risky move was a proven success for The company as they became a competitive company in forestry and construction industry with an advantage in the market. For over 67 years, the company has seen continual growth and financial success. Because of the current economic conditions this past year ...view middle of the document...

Because of the decrease in sales, the company must first look at the marginal revenue and the marginal cost profit maximizing guide to determine if it is profitable to continue producing their building and forestry equipment. Based on the data, after completing the analysis it proves that the output at each marginal revenue exceed the marginal cost thus proving that no more would be added to cost than to revenue. If profits are to be maximized, prices must be in excess of the average total cost where (P=MC output) as prices are kept at the equilibrium point to maximize revenue.
Production differentiation is a must to the consumers, as this awareness will influence their demand for the product. This is accomplished through means of advertising. A strong marketing team must show the consumers what FGI can offer not just in pricing but also in terms of the benefits of buying FGI equipment as opposed to the other brands. Another way of increasing revenue is for Thomas Money Inc. to include its employees in the plan. This can be accomplished through quality customer service and since hospitals and nursing homes are in demand for new buildings there is potential for new revenue.
Another recommendation for Thomas Money Inc. is in finding ways to improve the production levels. Since the company produces its own brand of forestry and building equipment they have an advantage to create or increase barriers to entry by their rivals by branding, patenting, or licensing its products. Investing in other subsidiaries within the medical industry with a focus on new construction of nursing homes and hospitals will also increase revenue. Based on the information provided prices are higher than the marginal revenue at every level of output thus putting the company in a position to produce the amount of demand for the product. Reducing prices and a strong advertising campaign are ways the company can boost its production levels.

Maximizing Profits
Thomas Money Inc. has the potential to maximize profits especially since the information stated that marginal revenue exceeds marginal costs. Increasing revenues and limiting variable costs are the primary motives for the company therefore FGI will need to shift from its consumer targeting from new equipment to used equipment. By focusing on the used equipment and liquidating the repossessed units will generate an increase to marginal revenue since the variable costs for those units do not exist.
The company does not have to stop producing new equipment, but the level of new production need to follow the economic condition and markets to retain normal profit. In calculating the data provided additional revenue can be achieved by integrating resource and production efficiency. In using a series of short-run production analysis and application techniques FGI can maximize profits using the total revenue and total cost approach. With total revenue of $2,600 and total cost of $1,050, it...

Other assignments on Thomas Money Service Business Proposal

Woodmere Products Essay

718 words - 3 pages 1.What are the major business propositions for Woodmere and HomeHelp to consider in evaluating this proposal? The major proposition for both of them to consider is would they both benefit from this challenge. -For Woodmere it would be a unique opportunity for them to grow their business relationship with a company that is growing and evolving to gain a bigger % of the market with an exclusive distribution agreement. They only have a few

Strategic Management Essay

2195 words - 9 pages business as a big producer of beer from a south Indian based British Breweries. Thomas Leishman was founded the United Breweries Limited (UBL) on15th March 1915 in Madras and he was also its first Managing Director. United Breweries Limited (UBL) manufactured bulk amount of beer and also they sold beer for both the troops of the world wars. Vittal Mallya is the one of the important person for the growth of the UBL in early days. He shaped the

Red In Uttrakhand

1001 words - 5 pages . Which sectors are eligible for support under the RED programme ? Seven sectors viz. ■ Medicinal and Aromatic plants (MAP) ■ Spices ■ Vegetables ■ Pulses ■ Dairy ■ Traditional/Non-traditional fibers ■ Agro Processing 3. What will be the form of assistance under the RED programme? Grant assistance in the form of ✓ seed capital for start-up ventures, or ✓ “Margin money” for existing business

Quickbooks

1655 words - 7 pages , 2012). The growth of the accounting system allows the growth of the business because the accounting system because more well-organized. With the accounting needs growth corresponding with the growth of the business, it is substantially important to analyze the great benefits of an efficient accounting system for the short and long term of a company. The firm indulgence in seeking the consultancy service for the Live project - QuickBooks in

Financial Transactions

606 words - 3 pages Transaction Exposure When conducting business aboard, cash inflows are affected when a variety of currencies are involved. In the case of Nike’s proposal to expand in India, there are ways to migrate exchange rate risks by exposing the possible risks before they affect the company’s profit margin. One method is the transaction exposure. Transaction exposure is the degree to which the value of future cash transactions that are affected by

Hotel Mobile Channel

6958 words - 28 pages intrapreneurial ventures followed the guidelines set BUSINESS PLANS: FOR ENTREPRENEURS ONLY ? out in the accompanying article. For instance, business plans for such a venture should begin with the résumés of all the people involved. What has the team done in the past that would suggest it would be successful in the future, and so on? In addition, the new venture’s product or service should be fully analyzed in terms of its opportunity and context

Procurement

3835 words - 16 pages organization seeking the service or product. The seller is the provider of the service or contract and is referred to as the vendor, the supplier, or the contractor. Project Management should be done by both the buyer and the seller. • Understand the definitions and terms. (buyer, seller, express and implied warranties, "fitness for a particular use", invitation to bid, request for proposal, etc.) • Understand the viewpoint of the reading material. Is

Accounting

1605 words - 7 pages Good accounting gone bad Principal of Accounting 1 1. Anatomy of a financial sheet a. Assets b. Revenue c. Expenses 2. Financial statement errors a. Enron b. WorldCom c. North Babylon Union Free School District 3. Sarbanes Oxley Act 4. Corporate Accountability Accounting has been defined as "the language of business" because it is the basic tool for recording, reporting, and evaluating economic events and

Bis 220 Final Paper

619 words - 3 pages commerce as wireless services to move Party Plates into the future. The pros and cons of each service are listed within this proposal. Mobile computing refers to real-time wireless connection between a mobile device and other computing environments, such as the Internet. These days it is spreading everywhere, at work, at home, in education, health care, entertainment, and in so many other areas. The pros of mobile computing is its mobility to

Proposal - Mercedes Benz's Formidable Difficulties In Myanmar Luxury Car Market

650 words - 3 pages 80% of the market share respectively. In recent years, IBTC has diversified into other businesses including properties, logistics and agriculture. 1.3 The Objective of Independent Study * To describe the brand exposure of the luxury car industry for a bright future of Myanmar high- end people and to spend the plenty of money on a prestige brand Mercedes Benz. * To get the recognition of the customers for the service quality

Bus 508

1293 words - 6 pages Mrs. Acres Homemade Pies Business 508 Professor Jack McCaffery Summer 2010 Rosie Wright BUS508   Assignment #1 1. Choose your company or service for your business proposal. It is not to be a franchise (McDonald’s). I would like to complete my business proposal on the company I work for; the name of the company is “Campus Crest Communities”. Campus Crest builds student housing across the United States. Their corporate office is

Similar Documents

Thomas Money Service Inc. Revised Essay

1582 words - 7 pages Thomas Money Service Inc. Revised George Rodriguez ECO/561 February 25, 2013 Fred Tadros, Ph.D. Introduction Thomas Money Service Inc. is a company that has been in business since 1940. The business started as a consumer finance company providing small loans for household needs. With time, Thomas Money Service Inc. expanded its business and grew into a company that was providing its services by issuing business loans, providing business

Erica Carson Case 1 2 Essay

541 words - 3 pages proposal; * $800k savings * manage risk (reputation) * new contract terms, maybe 1 year, (due to emergence of internet banking) * additional revenue, open new markets (share new business margin of scenic checks) * If not accept Killoran proposal; * No savings, no increase revenue * No customer risk in quality, service, reputation * Clarify business policy * If rebid current suppliers

Tqm At Ups Essay

5143 words - 21 pages carry many people. The relationship with UPS was stormy" (Soupata, 2001, p. 107) claimed Thomas J. Ross, executive director of Pace Suburban Bus System. UPS took quick action to make normal and to solidify the partnership by merging Pace's overall mission and business needs with the expansion proposal. UPS advanced the program forward by developing the preliminary sketch of a proposed bus route. Dan Bujas, former transportation coordinator for UPS's

Ddwedqw Essay

577 words - 3 pages 4) rep for high quality and customer service overcomes the issues that SE may have with quality before 5) higher sales 6) market distribution 7) less risk supermarket approached SE, so must see gap in market - the UK smartphone market is predicted to rise from £5.92bn to £7.36bn by 2014 against 1) high number of current defects 2) 10% defect rate compared to 5% 3) can increase easily as new proposal is more