Marketing & Financial Management | Desklib

Running head: MARKETING AND FINANCIAL MANAGEMENT
Marketing and Financial Management
Name of the Student:
Name of the University:
Authors Note:

1MARKETING AND FINANCIAL MANAGEMENT
Contents
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................3
Answer 3:.........................................................................................................................................8
Answer 4:.........................................................................................................................................8
Answer 5:.......................................................................................................................................10
References:....................................................................................................................................11

2MARKETING AND FINANCIAL MANAGEMENT
Answer 1:
As per the facts provided in the case study it has been said that the expected inflation rate is 3%
thus, by adjusting the prices of different boats at present with the expected inflation rate of 3%
the prices of different sailing boats the expected selling prices of these boats in the Norwegian
market have been determined.
The Billing 16 The Billing 33 The Billing 35 The Billing 29
Present year price 29,700.00 356,000.00 207,900.00
Expected price in coming year
(29700 x 103%) 30,591.00
(356000 x 103%) 366,680.00
(207900 x 103%) 214,137.00
(306160 x 103%) 315,344.80
It is important to note that no adjustments to the current prices of all four boats have been made
except the inflation rate adjustment as the company has been quite profitable with the current
prices of its boats. Hence, it has been assumed that no adjustments to the existing prices of
sailing boats are necessary to earn significant profit from Norwegian market (Drucker &
Maciariello, 2008).

3MARKETING AND FINANCIAL MANAGEMENT
Answer 2:
The CIF Prices in different foreign markets have been calculated by taking into consideration the
freight and insurance and the respective foreign exchange rates.
Billing 29 CIF prices
Country Price Exchange
rate
Foreign
currency
value
Currency
inflation
CIF CIF
prices
Denmark 325,000
.00
0
.73
445,205
.00
13,356
.15
21,233
.00
479,794.1
5
Country Price Exchange
rate
Foreign
currency
value
Currency
inflation
CIF CIF
prices
Sweden 325,000
.00
0
.73
445,205
.00
4,452
.05
17,123
.00
466,780.0
5
Country Price Exchange
rate
Foreign
currency
value
Currency
inflation
CIF CIF
prices