Chapter Name: Analyse internal and external factors that impact upon pricing decisions
Description:This chapter covers the analysis of both internal business factors and external market conditions affecting pricing.
Purpuse:To identify and evaluate factors that influence pricing decisions.
Rational:A comprehensive analysis ensures pricing decisions are well-informed and adaptable.
Chapters Topics
The internal factors impacting upon pricing decisions are identified and discussed in relation to the profitability of own venture.
Identify and discuss how internal elements (e.g. costs, production capacity) affect pricing and profit margins.
The external factors impacting upon pricing decisions are identified and discussed in relation to the profitability of own venture.
Discuss market demand, competition, economic conditions, and how they influence pricing in a business context.
The business activity levels are recognised and specified in terms of their limitations.
Understand how capacity, demand, and operational constraints affect pricing flexibility and decisions.
Variations in pricing decisions are to be calculated in terms of the impact on the break-even point.
Perform pricing calculations to see how changes affect the point at which revenue equals costs (break-even).