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Essay / Case Study: Fruit Soft Drink - 709
Through the use of decision-making tools that calculate information such as linear programming decision trees and other analytical tools, the optimal decision can be taken (Samuelson and Marks, 2012). Once this is done, the best choice should appear. The final step in pricing decision making is to perform a sensitivity analysis. This is where we can consider possible variations in the anticipated conditions surrounding the optimal decision. How does an economic downturn affect the profitability of the new fruit-flavored drink? What happens if a competitor offers a better quality product at a lower cost? These types of questions will be asked by the top management and by carefully studying different uncontrollable factors, one will be able to answer them in a way to make the best decision.