Big Assignment I Efa - Mega Nurastuti - 43219110270
Big Assignment I Efa - Mega Nurastuti - 43219110270
Big Assignment I Efa - Mega Nurastuti - 43219110270
AKUNTANSI
I have observed a case study of Dino conti ice cream, where the company's growth began to
slow down and profits decreased, it could be caused by many factors, one of which was the
existence of competitors that caused Dino conti ice cream to be shifted from consumer
choices.
but the owner of the company, Paolo Conti wants to maintain his dino conti ice cream
company by providing an additional capital of 3 million and providing the following options:
COST
OPTION BENEFIT
(ESTIMATED)
More production capacity; lower
Build a bigger factory $ 2.4 million
unit costs
Export to China and Russia $ 1.2 million New markets - great sales potential
Reduce competition; increase
Buy out its major competitor $ 2 million+
production capacity
Develop a range of exotic fruit drinks $ 2.5 million Move into a new area
Upgrade its equipment and fleet of trucks $ 1 .2 million Lower costs
Distribute to more outlets $ 500,000 Increase sales and profits
Increase sales / Improve company
Increase its advertising budget $ 500,000
image
Make the company more ·green $ 800,000 Improve company image and sales
Improve the products· packaging $ 400,000 Increase sales
Offer free ice cream to all consumers one day a Raise awareness of the company;
$ 600,000+
year good PR
This just wastes a lot of money because it is useless to develop the factory when the company
is slowing down and profits are decreasing. this method is less effective in cases like this, but
if the company has started developing a bigger factory is a very effective way, so that the
company can produce more ice cream.
It is less effective because the cost is large and it is not certain that the Chinese and Russians
like our products, this option can be used after the company has come out of the crisis to
make the company and ice cream more familiar to the world
Maybe this method can be used to attract consumer interest, because usually consumers like
new things including new flavors, but for this choice the costs needed are very large,
considering that dino conti ice cream only has additional capital 3 million, it will be difficult
to manage his finances
What the company needs today is how to make our products increase profits, this method is
costly and less effective
If the capital is a little more I will take this option, it is highly recommended to do more
promotions for companies that are experiencing a decline in sales