...Business Proposal ECO/561 July 18, 2013 Business Proposal A business proposal gives a perspective buyer an intended and scale offering from the seller. In addition, a business proposal has to establish a reasonable interest in growth not only for the company or business, but also with the transferring interest in the clientele and consumers. This will provide the company a detailed analysis of economic and financial benefits and costs, which are used to maintain cash flows. According to McConnell, Brue, and Flynn (2009), “costs exist because resources are scarce, are productive, and have alternative uses.” Therefore, this gives companies and businesses the opportunity to improve or limit the existing services and goods. As a result, this business proposal is providing the information on Thomas Money Service Inc. and Future Growth Inc. (FGI) (University of Phoenix, 2013). Thomas Money Service Inc. is a finance company established in 1940, which provides business loans, commercial real estate loans, and business acquisition financing loans (University of Phoenix, 2013). In 1946, FGI branched off from Thomas Money Service Inc. to inquire into equipment financing (University of Phoenix, 2013). Therefore, Thomas Money Service Inc. developed an economic system, which gives the factors of production and methods used to motivate, coordinate, and direct economic activity (McConnell, Brue, & Flynn, 2009). As a result, Thomas Money Service Inc. has survived a strong company...
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...Thomas Gentry Thomas Money Service Inc. and FGI Finance Business Proposal Economics/561 Instructor William Kutza May 27, 2013 Business Proposal for Thomas Money Service Inc. The proposal recommendations to analyze the situation at Thomas Money Services Inc. and FGI Finance attributes and introduction a plan to improve existing goods and services. The recommendation suggests applications for increasing revenue, maximizing profits, achieving ideal production levels, determining fixed and variable costs, and identifying methods to reduce the costs. The business proposal will establish that it is in the best interest for both clients and consumers. The current economy has been declining which has driven Thomas Money Service Inc. to find other methods to stabilize their profits, reduce loss, and help to gain or maintain market share. Thomas Money Service Inc. has been hit by the slow economy and the decease in the homebuilding market. The business proposal model will help Thomas Money Services Inc. to put in place applications to increase revenue, profit maximization quantities and to establish a mix of pricing and non-price strategies with low marginal cost and revenue theories. These applications will offset the negative impact of the decease in the homebuilding market. The business proposal presents methods to overcoming barriers to entry in to the market, how to increase product differentiation, how to input applications that will show potential cost savings...
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...Thomas Money Service Inc. established in 1940 with the intent of providing small loans for household needs. The success of the company has led them to expand their services which include business loans, business acquisition financing, and commercial real estate loans. In 1946 Thomas merged with a company that specialized in equipment financing called Future Growth Inc. This merger, although was a risky move was a proven success for The company as they became a competitive company in forestry and construction industry with an advantage in the market. For over 67 years, the company has seen continual growth and financial success. Because of the current economic conditions this past year the company is experiencing significant losses in their stock values and as a result the company has to layoff some employees. Massive flooding, forest fires, animal activist protesters in addition to the economic crisis are all reasons why the company is experiencing a 30% loss in sales from the previous year. Based on the loss in sales and other rivals in the equipment manufacturing industry that can offer substitutions Thomas Money Service Inc. has requested an analysis of the situation to determine the way ahead on how he can turn the company around and re-establish his status in the industry. The intent of this proposal is to provide a recommendation on how the company can increase revenue, achieve ultimate production levels, determine how fixed and variable costs can be adjusted...
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...Week 6: Final Business Proposal John A. Acosta ECO/ 561 April 23, 2014 Dan Olsen Week 6: Final Business Proposal Introduction Thomas Money Service Inc. has been in business since 1940 and has grown in the market as a finance industry. The company started off with financing small loans for household needs and increased throughout the years to financing business equipment in 1946 with a subsidiary name Future Growth Inc. (FGI), where it gained a huge market share with rapid speed. This business proposal will benefit the company because it is in a time frame where there is a high demand for equipment. Their move in 1946 to branch out into equipment financing moved them forward into the right direction. They saw that after World War II, everyone was coming home from the war. As people were coming home, new businesses were booming in construction and forestry and equipment were needed in these businesses. In 1951 made a daring move to purchase a manufacturing company, giving them an advantage in the market of selling their equipment and financing it and eventually just selling their own equipment instead of other brands. For over 60 years Thomas Money Service Inc. has increased profits year after year Increase Revenue / Profit –Maximizing Quantity In order for Thomas Money Service Inc. to reach their optimum point, they need to know where their marginal cost and marginal revenue meet. Once they know where that point is, it can lead to maximum profit. “In order to determine...
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...Business Proposal for Thomas Money Service Inc. Thomas Money Service Inc. has been in business since 1940 and provides a wide array of financial services for both individual consumers and large businesses. Thomas Money Service Inc. branched out in 1946 to include also a financing subsidiary called Future Growth Inc. (FGI) that specializes in equipment financing. The current global downturn, Thomas Money Service Inc. and FGI must restructure its operations and broaden its financial services for profit-maximization. This paper will identify how Thomas Money Service Inc. and its subsidiary FGI can improve its finance services for consumers and how its elasticity of demand and market structure can be analyzed to increase consumer spending. This paper will include ideas for increasing revenue, determination of the profit-maximizing quantity, how to use its marginal cost and revenue to maximize profit, non-price and pricing strategies, creation of barriers to entry, and product differentiation. How to Increase Revenue Thomas Money Service Inc. and FGI discontinued equipment financing of other brands of equipment when they began manufacture of their own equipment brand, Thomas Money Service can start cross-selling equipment financing to expand to other consumers and to give their current consumers more purchasing and finance options. This strategy will allow FGI to outpace competition by the development of new business opportunities, sales growth, increased revenue...
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...Thomas Money Service Inc. established in 2012 with the intent of providing small loans for household needs. The success of the company has led them to expand their services which include business loans, business acquisition financing, and commercial real estate loans. In 1946 Thomas merged with a company that specialized in equipment financing called Future Growth Inc. This merger, although was a risky move was a proven success for The company as they became a competitive company in forestry and construction industry with an advantage in the market. For over 67 years, the company has seen continual growth and financial success. Because of the current economic conditions this past year the company is experiencing significant losses in their stock values and as a result the company has to layoff some employees. Massive flooding, forest fires, animal activist protesters in addition to the economic crisis are all reasons why the company is experiencing a 30% loss in sales from the previous year. Based on the loss in sales and other rivals in the equipment manufacturing industry that can offer substitutions Thomas Money Service Inc. has requested an analysis of the situation to determine the way ahead on how he can turn the company around and re-establish his status in the industry. The intent of this proposal is to provide a recommendation on how the company can increase revenue, achieve ultimate production levels, determine how fixed and variable costs can be adjusted...
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...Business Proposal Cera M. Spallone ECO/561 October 8, 2012 Mark Erenburg Business Proposal Thomas Money Service Inc. (TMS) is a consumer finance company that started its services in small loans for households since 1940. Thomas Money Service, Inc. would grow its market provisions later by offering businesses loans, acquisitions, and commercial real estate loans. In 1946, to enhance TMS, and the success, a subsidiary named Future Growth Inc. (FGI) was formed. FGI was a branch out decision into equipment financing. Unexpectedly, FGI procured an enormous demand for equipment; this steady control has lasted for 67 years. FGI purchased an equipment manufacturing company to keep up with the demand (University of Phoenix, 2011). Increase Revenue The recession has caused a decline in the forestry states where FGI has majority profits originating from. Oregon, Washington, and several other forestry states have combatted fires, flooding, and hazards that derail work. To pursue methods, which will boost profit, help preserve market share, Thomas Money Service, Inc. parent company to FGI has opted to look into another industry outside of homebuilding. Executing a well strategize plan to move into an industry with a high-demand for buildings would increase the revenue. In this market structure there are few firms in which sell either a standardized or differential product, into which entry is difficult, and the firm has limited control over product price because of mutual...
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...Thomas Money Service Inc. Business Proposal Jeanette Galindo ECO/561 July 7, 2014 Dr. Robert Batiste Abstract The proposal that the student researched is in reference to the Thomas Money Services Inc. And its associated competitor’s, the information that has been gather will cover the following: * Market Structure * Elasticity of the product * pricing relate to elasticity of your product * changes in marginal cost and marginal revenue * suggestions on non-pricing strategies * Types of non-pricing strategies that will you used to increase barriers to entry. * changes with in the business operations alter the mix of fixed and variable costs in line with your strategy. Thomas Money Service Inc. Business Proposal Market structure The Thomas Money Service started out as a Consumer finance company but after being open for over six years they decided to Branch out to equipment financing company this company is part of a Pure Competition market structure they. Elasticity of the product The falling economy caused a not only the economy to suffer but also several forestry states which for the first time in the history of the company the seen a 30 % decrease in profits. marginal cost and marginal revenue The company repossessed over 500 pieces of equipment during the past year and found that the selling price should be $1,732 (use the table to show figures) nonpricing strategies...
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...Individual Business Proposal Angela M. Anderson ECO/561 April 23, 2012 Antwan Williams Individual Business Proposal Since the 1940’s Thomas Money Services, Inc (TMS), has been providing small loans to consumers. During that time TMS augmented its business to include the servicing of business loans, business acquisition financing, and commercial real estate loans. In 1946 TMS decided to finance forestry and construction equipment. The decision proved to be very profitable and resulted in TMS’s establishment of Future Growth Inc. (FGI). Consequently FGI also experienced an immense demand for equipment allowing FGI the capability to purchase its own equipment manufacturing company. This allowed FGI to sell, build, and finance its own equipment. For 67 years FGI’s business venture went well (UOP, 2010). The Northwest United States forestry states have been plagued with flooding, fires, and protests from animal activists. Accompanied by a failing economy, FGI sales have dropped by 30% from the previous year. Competition is heavy in the equipment manufacturing industry offering substitutions for equipment, so FGI is not in a niche market and must evaluate options available to increase market sustainability. The purpose of this proposal is to provide business recommendations to Thomas Money Service Inc (TMS) addressing how TMS can increase revenue, its ideal production levels, maximizing profit through fixed and variable costs in addition to reducing costs. Increasing...
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...Existing Business Proposal ECO/561 June 21, 2012 Dr. Jill Trask Business Proposal It is very significant to comprise a business plan in the shifting world business to stay ahead. The changes in the economy will create or shatter the business. In this paper Adnan will discuss the existing goods or services business proposal of Thomas Money Services Inc. The reason to have a business plan for the organization is to restore or generate more profits for the business. Elasticity of Demand and Market Structure Thomas Money Service Inc. (TMS) has been in business since 1940. TMS started out as an end user funding company giving way loans for domestic wants. The company prolonged over the next five years by granting business loans, business acquirement financing, and business real estate loans. In 1946 executive made a choice to expand into gear financing. This proved very lucrative for the company. With the end of the World War II, society experienced increased demand for construction and forestry equipment. In 1951, the equipment financing subsidiary, Future Growth Inc. (FGI) purchased and equipment manufacturing company, which vertically integrated the subsidiaries operations. TMS Inc has a monopolistic competition market; elasticity of demand is how much demand varies for manufactured goods in connection to a transformation in price. This transformation is measured as a percentage. For TMS Inc the elasticity is that it can offer the monetary support...
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...Business Proposal Objectives: You will apply economic principles presented in Weeks One through Three in this week's assignment. Your assignment will be reviewed by your peers and by your facilitator in week five and should be revised as necessary based on feedback as the first part of the final assignment in week six. Select a new, realistic good or service for an existing industry. Write the economic analysis section of a business proposal. This will include statements about the market structure and the elasticity of demand for the good or service, based on text book principles. You need to create hypothetical data, based on similar real world products to estimate fixed and variable costs. Required Elements: * Identify market structure * Identify elasticity of the product * Include rationale for the following questions: * How will pricing relate to elasticity of your product? * How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue? * Besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will you use to increase barriers to entry? * How could changes in your business operations alter the mix of fixed and variable costs in line with your strategy? * No more than 1400 words * Your proposal is consistent with APA guidelines Business Proposal - Thomas Money Service, Inc. Scenario The following pages...
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...Thomas Money Revenue, Cost Concepts, and Market Structure Proposal ECO/561 October 8, 2011 Professor Alfred Igbodipe Thomas Money Service Inc. (TMS) has been in business since 1940. TMS started out as a consumer finance company granting small loans for household needs. The company expanded over the next five years by issuing business loans, business acquisition financing, and commercial real estate loans. In 1946 management made a decision to expand into equipment financing. This proved very lucrative for the company. With the end of World War II, society experienced increased demand for construction and forestry equipment. In 1951, the equipment financing subsidiary, Future Growth Inc. (FGI) purchased an equipment manufacturing company, which vertically integrated the subsidiaries operations. Over the next 67 years the company increased revenues and profits. Unfortunately, with the recent downturn in the American economy coupled with several natural disasters, FGI has for the first time experienced a decline in profits and was forced to lay off one-third of its workforce. Although residential home sales have dropped the health care industry is still experiencing healthy demand. The purpose of this paper is to provide recommendations to TMS for increasing revenue, achieving ideal production levels, determining how fixed and variable costs should be adjusted to maximize products and finally to identify methods to reduce costs. Since the economic decline FGI...
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...Existing Good or Service Business Proposal Thomas Money Service Inc. University of Phoenix ECO 561 September 5, 2011 Existing Good or Service Business Proposal The Thomas Money Service, Inc. is a consumer finance company that has been granting loans and financing since 1940. Within the first five years the company expanded its business when it began “issuing business loans, business acquisition financing, and commercial real estate loans” (University of Phoenix, 2011, p. 1). By 1946 the company expanded to include equipment financing by creating a subsidiary named Future Growth Inc. (FGI). Due to increased demand in forestry and construction equipment in 1951 FGI purchased a manufacturing company so that the company was able to offer financing as well as their own brand of construction equipment. Over the past 67 years, FGI has held a monopoly on financing and manufacturing construction equipment and has seen only increased profits year after year. FGI has also never had to lay off any of its employees. “This track record has allowed their stock to grow from $5.00 to $85.60 with stock splits from 1975 to 1998. FGI has never issued bonds, and the present stock value is $35” (University of Phoenix, 2011, p. 1). Unfortunately, with the current economic downturns, natural disasters, and a decline in new-home sales, profits for FGI began to decline by 30% from the previous year. Due to the decline in production, the...
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...consists of a complete solution for products and the procedures that can be used with some technology. Table of Contents Abstract……………………………………………………………………………………….2 Brief Company Background…………………………………………………………..2 Discussion of business problem…………………………………………………….4 High level solution…………………………………………………………………………5 Benefits of solving the problem………………………………………………………5 Business/technical approach…………………………………………………………6 Business process changes………………………………………………………………7 Technology or business practices used to augment the solution………..7 Conclusions…………………………………………………………………………………….8 High level implementation plan……………………………………………………….9 Specific bulleted list of recommendation………………………………………….9 References……………………………………………………………………………………..10 Abstract With technology becoming a priority for running a successful business today there are ways that technology can be a solution to a company or organizations problem. Technology can provide a great way to stop unnecessary losses for a company. Continuous waste can be pin pointed and rectified with the right technology. For instance America wasted 33.79 million tons of food in 2010. Which was enough to fill the Empire state Building 91 times. Ten years ago that waste number was 16 percent lower (Thomas, 2013) Restaurants can contribute to a majority of the waste due to misinformation or training errors. Brief Company background Chick-fil-a is an American fast food restaurant chain that was founded in Hapeville, Georgia in...
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...Sky Air Inc.: Business Ethics Case Brock A. Reeves University of St. Thomas Summary of the Case Study Sky Air Inc. was an airline with its head office in Idaho Falls. It came into being in 1986. Its founder, Samuel Kaplan, was once an air force mechanical engineer. Apart from his engineering background, Mr. Kaplan was also a talented golf player. Having been born and brought up in Idaho Falls, Kaplan found out that there was a gap in the airline industry there. He believed that the region needed an extra carrier bearing in mind that the only airline, Vixenne Air, was performing poorly. Other problems related to the services offered by Vixenne Air included ineffective services to the customers and violations of the air safety precaution. Kaplan realized that he was capable of running an efficient airline due to his wealth of experience in the air force coupled with his mechanical skills. Since the inception of the company back in 1986, Sky Air Inc. had grown gradually. In this case study, Mr. Kaplan wished to sell some shares of Sky Air Inc. to generate money to take care of his forthcoming triplets as his wife was expecting. The potential partner would only have a 30% stake in equity without any representation in the management board. The buyer, Thyestean Ventures, offered $6 million which Mr. Kaplan concluded was too low for a company such as Sky Air Inc. Main Problem The main problem presented in the case study was the low buying price suggested by the potential buyer...
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