Pricing policies of an organization long term or short term
Are the pricing policies of an organization long term or short term based? Briefly explain.
Expert
Depending on the volume of gains which a company has targeted, its pricing strategy might be short or long term based. When a company has invested a lot on research and development of the product and its endorsement, short term pricing strategy might be obeyed initially in order to recuperate the cost of investment quickly, after that it might change its pricing strategy to the long term one to maintain its business operations. For illustration a product might be sold at premium price at first and slowly its price might be lowered once it has captured adequate market demand.
Raju and Kamala set up a consultancy firm under the name of Expert Consultancy in June 2000. The partnership agreement clearly stated that the partnership shall remain for a ten year period. In December 2010, Kamala took a personal loan amounting to RM100,000 from Bank Business
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