Give a realistic and unique example of how equilibrium prices (p*) and equilibrium quantity (q*) are re-established after the puncturing of equilibrium (i.e., the demand and/or supply curve shift). Explain what would cause one or both of the curves to shift, if this would create a surplus or shortage, and the ensuing pressure to change this would have on prices and quantity purchased/sold as a result. Make sure to accurately discuss changes in quantity supplied or demanded vs. changes in supply or demand.  

Answer two thematic questions of the module: Are Markets Effective Tools and What Are Their Impacts? Use the economic concepts discussed in both Chapters 3 and 5 of the openstax microeconomic.

Eyelash Extension Company’s liabilities as reported on the June 30, 2017, balance sheet are shown below, along with its statement of changes in equity.

Eyelash Extension Company’s liabilities as reported on the June 30, 2017, balance sheet are shown below, along with its statement of changes in equity.

Jan is selling the business. A potential buyer has hired an accountant to review the accounting records and the following was discovered:

a. Eyelash Extension Company began selling a new product line this past year that offered a warranty to customers. It is expected that $49,700 of warranty work will result next year based on first-year sales. No entry was prepared on June 30 to show this.
b. Annual property taxes of $24,900 are due July 31, 2017; the income statement shows only one month of property expense resulting from an entry correctly recorded on July 31, 2016.
c. Interest on the notes payable is paid quarterly. No entry has been recorded since the last quarterly payment of $13,200 on May 1, 2017.
d. $17,900 of new office furniture was purchased on account and received on June 28. This transaction has not been recorded.
e. Unearned revenue of $22,700 has been included on the income statement.

Required:
Using the information provided, prepare a corrected statement of changes in equity and liabilities section of the balance sheet. (Round your intermediate calculations and final answers to the nearest whole dollar.)

Wellsley Containers currently uses a recycled plastic to make bottles for the food industry.

Current bottle production? information:

The cost and time standards per batch of 10,000 bottles are as ?follows:

1)Which of the following is (are) required for evolution?

A) highly stable genome

B) competition

C) heritable traits

2) The National Toxicology Program reported in 2016 that cell phone radiation increased brain tumor growth in male rats. Radiation can cause damage and mutations to DNA.

Suppose you wished to study this further. You mate these rats and find that the offspring have normal incidence of tumors. You would conclude that the tumors were most likely due to______ .

A) changes to the stomatic cells

B) changes to the gonadal cells

C) changes to the cells

If on the other hand, the offspring also had increased tumor growth, then you would conclude that the_______ .

A) changes occur in the stem cells

B)changes occur in the germ cells

C) tumor tissue was transferred to the offspring

Cell phones emit________ radiation when talking than on standby.

A) more

B) less

That would suggest that using a hands-free headset may be beneficial in preventing brain tumors. Ironically, if the phone is kept in the pocket during a call using a headset, then the genetic changes would be_________ .

A) less severe

B) prevented

C) more likely to pass to the next generation

3) Which of the following point mutations would have little or no effect on cellular function?

A) mutation from AUA to AUG

B) mutation in exon

C) mutation from CUC to AUU

D) mutation from UUA to UUG

E)mutation in regulatory region

4) Why does gene duplication promote evolution?

A)duplicated genes are under less selective pressure

B)duplicated genes are less likely to mutate

C)duplicated genes do not promote evolution

5) Urokinase and chymotrypsin (a digestive enzyme) have one domain in common with each other. This suggests that:

A) they are part of a gene family

B) they evolved through exon shuffling

6) Match the term with the best definition:

Terms:                                                             Definitions:

Exon shuffling                                                 A)allows bacteria to become antibiotic resistant

Point mutation                                                 B)often has a neutral effect

Horizontal transfer                                           C)involves errors in replication of chromosome ends

                                                                        D) can only occur in eukaryotes

7) What can you conclude about genetic differences and similarities between humans, chimpanzees, and E. coli?

Most conserved genes: a) human accelerated genes b) polymerase c) ribosomal RNAs

Fairly conserved genes: a) human accelerated genes b) polymerase c) ribosomal RNAs

Least conserved genes: a) human accelerated genes b) polymerase c) ribosomal RNAs

1. Imagine that the Canadian economy in 2016 could be described by the following demand determined model:

Consumption: C = a + bYd + θW

Investment: I = I0

Government Purchases: G = G0

Exports: X = X0

Imports: IM = mY

Tax Revenue: T = τ + tY
Where: a is autonomous consumption, b is the marginal propensity to consume out of disposable income, W is wealth, θ is the marginal propensity to consume out of wealth, m is the marginal propensity to import, τ are lump-sum taxes, and t is the tax rate.

(a) Algebraically solve for the equilibrium level of national income, the simple multiplier & draw a diagram of the equilibrium. Make sure to show all your steps, and label all important points on your graph. Total of 7 Marks (5 marks for algebra, 2 marks for graph)

(b) The real value of Canadian households’ principal residence increased three-fold from 1999-2016 and represented about 36% of household assets. Discuss (using the aid of a diagram) what would happen if housing prices fell in this economy. Total of 7 Marks (4 marks for explanation, 3 marks for graph)

For parts (c) and (d), imagine the Canadian economy is characterized by the following parameter values:
Consumption: C = 200 + .75Yd + 0.05W

Investment: I = 350

Government Purchases: G = 75

Exports: X = 125

Imports: IM = 0.2Y

Tax Revenue: T = 100 + 0.1Y

Wealth: W = 1000

The government wants to decrease equilibrium national income by $10 billion using taxation. This model allows two possible tax policies: i. Changes to lump-sum taxes (τ) ii. Changes to the tax-rate (t)

(c) If the government wanted to decrease national equilibrium by $10billion solely through changes to lump-sum taxes(τ), how should they alter their lump-sum taxes? Assume no other changes would take place. Complete answers should include both your calculations and a diagram illustrating what is happening. Total of 7 Marks (2 marks for graph, 5 marks for algebra/explanation)

(d) If the government wanted to decrease national equilibrium by $10billion solely through changes to the proportional tax rate(t), how should they alter their tax rate? Assume no other changes would take place. Complete answers should include both your calculations and a diagram illustrating what is happening. Total of 7 Marks (2 marks for graph, 5 marks for algebra/explanation)

From the following artical, prepare the answer for question no. 1

Bookkeeping educational qualifications have undergone an overhaul, following a review of existing Certificate IV qualifications.

The Department of Education and Training has announced a new Certificate IV in Accounting and Bookkeeping, superseding the Certificate IV in Bookkeeping and Certificate IV in Accounting.

The changes follow an extensive review by PwC Skills for Australia on behalf of the Financial Services Industry Reference Committee, endorsed by the Australian Industry and Skills Committee.

The bookkeeping industry has also been vocal on the state of education standards in recent times.

The new Certificate IV in Accounting and Bookkeeping removes duplication in the previous qualifications and now has eight core units and five elective units.

According to the review, several units of competency in the previous qualifications were identified as out of date, with skills gaps in understanding GST and processing payroll for bookkeeping.

In addition to the new Certificate IV, a new Diploma of Payroll Services has also been introduced, after the review found that existing payroll training was not sufficient for industry requirements.

“Despite payroll’s importance, only limited nationally recognised training is currently available. In addition, no nationally recognised payroll qualifications exist to provide learners with the suite of skills required for a payroll administrator or payroll manager,” the review stated.

Registered training organisations (RTOs) will be given 12 months to develop new resources to align training outcomes in line with the new requirements.

Institute of Certified Bookkeepers chief development officer, Rick Van Dyk, said the changes were welcomed and reflected the modernisation of the profession.

“The Certificate IV in place at the moment simply needed to be modernised and some of the learning outcomes of the current Cert IV needed to be reviewed so it would be more applicable to today’s requirements for a professional bookkeeper,” said Mr Van Dyk.

Having been involved in the consultation process, the ICB believes the new competency units, such as 'FNSACC416 Set up and operate a computerised accounting system' and 'BSBSMB412 Introduce cloud computing into business operations', will provide more contemporary training for bookkeepers.

"There is a unit of competency called ‘set up and operate a computerised accounting system’ – that was a core unit in the Cert IV of Accounting but was not a core for Cert IV in Bookkeeping, but that is very much a core function for bookkeeping,” said Mr Van Dyk.

“Also, in the previous Cert IV there was typically a couple of units where they would get their hands dirty in the software and that would be the payroll unit and the cash and accrual unit.

“Ninety per cent of the training organisations would use MYOB desktop software so the student goes through the whole Cert IV learning process using desktop software and not being educated on what are the options for the cloud,” he added.

“One of the skill sets a bookkeeper really needs is if they are dealing with a client who is using a desktop system, they have to do a business case on why that client is beneficial to switch to the cloud and in that unit it actually has what are the benefits to the business, what are the various options and costing.

“That unit is great because it develops their skill on creating awareness on what cloud solutions are out there, and talking to the business owner and developing a business case, and how to implement that.”

‘The only way is up’

The new chief executive of the Association of Accounting Technicians (AAT), Rochelle Park, was particularly pleased with the new Diploma of Payroll Services.

“If bookkeepers are wanting to expand, this certainly provides them with the confidence that they are recognised for their skills and knowledge,” Ms Park said.

“I think it’s also an indication of the continued maturity of our profession,” she added.

Ms Park noted the Fair Work Ombudsman has made it “very, very clear” that it won’t tolerate non-compliance with payroll obligations, and that inadequate education or ignorance is not a defence.

“Bookkeepers navigating the world of payroll services have never had this level of education available to them in a formalised format. It will very much help towards navigating a complex regulatory environment,” Ms Park said.

Question 1 - 9 marks (1,500 words)

The CEO has forwarded to you an interesting article and requires you to provide her with a deeper theoretical understanding of the issues discussed so that she can fully engage in the lively discourse at an upcoming conference.

You are required to find a newspaper article or web page report of an item of accounting news, i.e. it refers to a current event, consideration, comment or decision that has been published after the 1st of January 2018. Your article could also come from one of the professional journals. The article should not come from an academic journal. Academic journals generally do not contain news articles or articles of less than one page and are usually only published 2 or 4 times a year. If you are having a problem ensuring that your article is from an appropriate source contact your subject coordinator.

You then need to explain the article that you have found in your own words and clearly relate the concepts, ideas and facts within the article to one or more of the theories or topics that you have studied this session. Support your analysis of the assumptions and implications of the topic or theory as appropriate with reference to sources in APA 6 style. For example, this article from the Sydney Morning Herald in April 2016 could be linked to the topics of accounting regulation and measurement (and perhaps others). You must provide a copy of the article or web page, with details of the source, date and page number with your answer.

Beckett Organics

John Beckett enjoys vegetables, so much so that he has given up his full-time job as a lawyer to concentrate on growing and marketing organic vegetables. He started growing vegetables 20 years ago in his back garden and eventually became fully self-sufficient in supplying vegetables for the family. Partly bored with his legal job and tempted by an attractive severance package, John decided he would try to establish his own vegetable supply business. Eighteen months ago he looked around for two fields to lease in which he could grow organic vegetables.

Organic products including vegetables, is a growth market in the UK. Growers must adhere to strict guidelines in order to gain organic certification. Increasing awareness of the problems associated with many pesticides and fertilizers, coupled with an increased interest in healthy eating habits and ‘wholesome’ food, has meant that many consumers are now either purchasing or interested in purchasing organic vegetables. This is true not only of household customers, but in addition, many restaurants are using the lure of organic produce to give them a distinctive edge in the market place.

All this has meant that many of the larger supermarkets in the UK have begun to stock more and more organic produce from what was a relatively specialized market in the 1990s; the market has grown to where overall organic produce accounts for some 12% of the total UK grocery market and in worldwide terms as of January 2010 it accounts for approximately 3% of all food sales. The market for organic vegetables has grown more rapidly than other organic products and it is estimated that by 2014 some 25% of all vegetables marketed in the UK will be organic. This growth has been sustained at a rate of around 20% per year in developed countries. However, organic yields are between 10% and 20% lower than conventional agriculture, with crops like potatoes some 40% lower. Unsurprisingly, this makes organic produce on average around 40% more expensive than non-organic produce.

A.C.Nielsen Co. cite the case of the United States where organic sales eased in the second half of 2009 as middle- and upper-income families have felt the strain of layoffs and declining investment portfolios. Sales in December 2009 were up 5.6 percent, year on year, against a 25.6 percent rise a year earlier.

Organic vegetables offer several advantages over their non-organic counterparts:

• They are generally tastier, and because they are not treated in the same way, are usually fresher than nonorganic products.
• They are good for a healthy lifestyle as they contain no pesticides and chemicals.
• The fact that no pesticides or herbicides are used in their production means that they are much ‘greener’. For example, they help to reduce the problems associated with nitrates in the soil and water supplies.
• On the downside, organic vegetables are generally less uniform, and as far as some consumers are concerned, are less attractive in appearance. This lack of uniformity has also been a problem in the past with supermarket buyers who have traditionally looked for uniformity in fresh products to aid merchandising and marketing in retail outlets.

• Generally, organic vegetables are more expensive than their non-organic counterparts. Currently, on average they are somewhere in the region of 40% more expensive.

In the UK, anyone wishing to claim that their produce is organic, and market it in this way, needs to obtain the approval of the Soil Association, which checks the organic credentials of a supplier. For example in this case, they check the conditions under which the produce is grown and how the seeds used.

Two interesting developments are taking place in the organic produce market. One is the growth of home supplies. This is where the producer supplies direct to the householder. There are a variety of ways of doing this. Some smaller growers use mail-shots and leafleting to build up a client base. They then deliver locally to customers who order from a list. Very often the supplier will simply make up a box of a pre-determined value or weight containing a selection of vegetables which are in season and ready for picking. Other suppliers are using a similar system, but take their orders via the Internet. This is particularly suitable for this type of product as customers can check on a regular basis what is available and order from home. The produce is then delivered at a pre-arranged time.

The second development in the organic produce market is the growth of farmers’ markets. These markets are usually run by local authorities, often on Saturdays or Sundays. Local and other producers attend these markets, paying a small fee for a stall and then sell their produce direct to the consumer. These farmers’ markets partly came about as a result of the frustration felt by many farmers and growers at the way they were being treated by retailers and at the margins they were receiving. In addition, such markets have been successful because consumers feel they are getting fresh produce at lower prices than they might be able to obtain through supermarkets.

Despite the growth in the market for organic vegetables, after 18 months in his business, John is worried. Quite simply, his business has not been as successful as he envisaged it would be, and as a result he is not earning enough to make a living. The real worry is that he is not sure why this is the case. His produce, he believes, is as good as anything in the business. He is a very good grower and the land he has leased is perfect for the range of produce he wishes to grow. Starting with organic potatoes he now produces a range of organic vegetables including beans, sprouts, carrots, lettuce and his latest venture organic tomatoes and corn grown in poly-tunnels. Although customers he currently supplies are very loyal to John, indeed many are friends and acquaintances he has known over the years when he grew vegetables in his back garden, there are simply not enough of them.

As a result, his turnover which increased rapidly over the first year of the business has for the last six months has stagnated. He mainly supplies locally and has tried to increase his customer base by taking leaflets out and posting them through letterboxes in the area. He has done this by dividing up the housing areas in a ten mile radius around his growing area and dropping leaflets throughout the area to as many houses as he can cover on a systematic basis. Only some 2% of customers have responded with an order, usually contacting by telephone. These customers seem to come from the middle class areas. He has considered taking a stall at one of the farmers’ markets, the nearest of which is some 40 miles away and operates one day per month, but he realises this would not be enough to reach the turnover levels he requires. He has in the past supplied one or two local restaurants and hotels, but usually only when they have contacted him because they have had a problem with their existing supplier.

He has never followed these up. His growing area is currently too small to supply a major retailer, although he has been approached on an informal basis by the buyer of a voluntary chain of local grocers representing some 40 retail outlets in the county.

John is wondering where he goes from here. He cannot understand why his superior products are not selling well. A friend has suggested that John needs a more strategic approach to marketing. John is not convinced. He feels his business is too small to warrant any kind of marketing, never mind strategic marketing, and he has always felt that a good product should sell itself. He is, however, anxious to grow the business and become a leading organic vegetable supplier.

Questions 4:

What in your opinion should be the marketing strategy that an organization of this type should indulge in? Bring out the advantages and disadvantages of the strategy

.

Case Study II

Beckett Organics

John Beckett enjoys vegetables, so much so that he has given up his full-time job as a lawyer to concentrate on growing and marketing organic vegetables. He started growing vegetables 20 years ago in his back garden and eventually became fully self-sufficient in supplying vegetables for the family. Partly bored with his legal job and tempted by an attractive severance package, John decided he would try to establish his own vegetable supply business. Eighteen months ago he looked around for two fields to lease in which he could grow organic vegetables.

Organic products including vegetables, is a growth market in the UK. Growers must adhere to strict guidelines in order to gain organic certification. Increasing awareness of the problems associated with many pesticides and fertilizers, coupled with an increased interest in healthy eating habits and ‘wholesome’ food, has meant that many consumers are now either purchasing or interested in purchasing organic vegetables. This is true not only of household customers, but in addition, many restaurants are using the lure of organic produce to give them a distinctive edge in the market place.

All this has meant that many of the larger supermarkets in the UK have begun to stock more and more organic produce from what was a relatively specialized market in the 1990s; the market has grown to where overall organic produce accounts for some 12% of the total UK grocery market and in worldwide terms as of January 2010 it accounts for approximately 3% of all food sales. The market for organic vegetables has grown more rapidly than other organic products and it is estimated that by 2014 some 25% of all vegetables marketed in the UK will be organic. This growth has been sustained at a rate of around 20% per year in developed countries. However, organic yields are between 10% and 20% lower than conventional agriculture, with crops like potatoes some 40% lower. Unsurprisingly, this makes organic produce on average around 40% more expensive than non-organic produce.

A.C.Nielsen Co. cite the case of the United States where organic sales eased in the second half of 2009 as middle- and upper-income families have felt the strain of layoffs and declining investment portfolios. Sales in December 2009 were up 5.6 percent, year on year, against a 25.6 percent rise a year earlier.

Organic vegetables offer several advantages over their non-organic counterparts:

• They are generally tastier, and because they are not treated in the same way, are usually fresher than nonorganic products.
• They are good for a healthy lifestyle as they contain no pesticides and chemicals.
• The fact that no pesticides or herbicides are used in their production means that they are much ‘greener’. For example, they help to reduce the problems associated with nitrates in the soil and water supplies.
• On the downside, organic vegetables are generally less uniform, and as far as some consumers are concerned, are less attractive in appearance. This lack of uniformity has also been a problem in the past with supermarket buyers who have traditionally looked for uniformity in fresh products to aid merchandising and marketing in retail outlets.

• Generally, organic vegetables are more expensive than their non-organic counterparts. Currently, on average they are somewhere in the region of 40% more expensive.

In the UK, anyone wishing to claim that their produce is organic, and market it in this way, needs to obtain the approval of the Soil Association, which checks the organic credentials of a supplier. For example in this case, they check the conditions under which the produce is grown and how the seeds used.

Two interesting developments are taking place in the organic produce market. One is the growth of home supplies. This is where the producer supplies direct to the householder. There are a variety of ways of doing this. Some smaller growers use mail-shots and leafleting to build up a client base. They then deliver locally to customers who order from a list. Very often the supplier will simply make up a box of a pre-determined value or weight containing a selection of vegetables which are in season and ready for picking. Other suppliers are using a similar system, but take their orders via the Internet. This is particularly suitable for this type of product as customers can check on a regular basis what is available and order from home. The produce is then delivered at a pre-arranged time.

The second development in the organic produce market is the growth of farmers’ markets. These markets are usually run by local authorities, often on Saturdays or Sundays. Local and other producers attend these markets, paying a small fee for a stall and then sell their produce direct to the consumer. These farmers’ markets partly came about as a result of the frustration felt by many farmers and growers at the way they were being treated by retailers and at the margins they were receiving. In addition, such markets have been successful because consumers feel they are getting fresh produce at lower prices than they might be able to obtain through supermarkets.

Despite the growth in the market for organic vegetables, after 18 months in his business, John is worried. Quite simply, his business has not been as successful as he envisaged it would be, and as a result he is not earning enough to make a living. The real worry is that he is not sure why this is the case. His produce, he believes, is as good as anything in the business. He is a very good grower and the land he has leased is perfect for the range of produce he wishes to grow. Starting with organic potatoes he now produces a range of organic vegetables including beans, sprouts, carrots, lettuce and his latest venture organic tomatoes and corn grown in poly-tunnels. Although customers he currently supplies are very loyal to John, indeed many are friends and acquaintances he has known over the years when he grew vegetables in his back garden, there are simply not enough of them.

As a result, his turnover which increased rapidly over the first year of the business has for the last six months has stagnated. He mainly supplies locally and has tried to increase his customer base by taking leaflets out and posting them through letterboxes in the area. He has done this by dividing up the housing areas in a ten mile radius around his growing area and dropping leaflets throughout the area to as many houses as he can cover on a systematic basis. Only some 2% of customers have responded with an order, usually contacting by telephone. These customers seem to come from the middle class areas. He has considered taking a stall at one of the farmers’ markets, the nearest of which is some 40 miles away and operates one day per month, but he realises this would not be enough to reach the turnover levels he requires. He has in the past supplied one or two local restaurants and hotels, but usually only when they have contacted him because they have had a problem with their existing supplier.

He has never followed these up. His growing area is currently too small to supply a major retailer, although he has been approached on an informal basis by the buyer of a voluntary chain of local grocers representing some 40 retail outlets in the county.

John is wondering where he goes from here. He cannot understand why his superior products are not selling well. A friend has suggested that John needs a more strategic approach to marketing. John is not convinced. He feels his business is too small to warrant any kind of marketing, never mind strategic marketing, and he has always felt that a good product should sell itself. He is, however, anxious to grow the business and become a leading organic vegetable supplier.

Questions 1:

What advice would you give to John about developing his business through more effective strategic marketing?

Kindly check Case Below and if possible to answer the question at the end of the case.

Beckett Organics
John Beckett enjoys vegetables, so much so that he has given up his full-time job as a lawyer to concentrate on growing and marketing organic vegetables. He started growing vegetables 20 years ago in his back garden and eventually became fully self-sufficient in supplying vegetables for the family. Partly bored with his legal job and tempted by an attractive severance package, John decided he would try to establish his own vegetable supply business. Eighteen months ago he looked around for two fields to lease in which he could grow organic vegetables.
Organic products including vegetables, is a growth market in the UK. Growers must adhere to strict guidelines in order to gain organic certification. Increasing awareness of the problems associated with many pesticides and fertilizers, coupled with an increased interest in healthy eating habits and ‘wholesome’ food, has meant that many consumers are now either purchasing or interested in purchasing organic vegetables. This is true not only of household customers, but in addition, many restaurants are using the lure of organic produce to give them a distinctive edge in the market place. All this has meant that many of the larger supermarkets in the UK have begun to stock more and more organic produce from what was a relatively specialized market in the 1990s; the market has grown to where overall organic produce accounts for some 12% of the total UK grocery market and in worldwide terms as of January 2010 it accounts for approximately 3% of all food sales. The market for organic vegetables has grown more rapidly than other organic products and it is estimated that by 2018 some 40% of all vegetables marketed in the UK will be organic. This growth has been sustained at a rate of around 20% per year in developed countries. However, organic yields are between 10% and 20% lower than conventional agriculture, with crops like potatoes some 40% lower. Unsurprisingly, this makes organic produce on average around 40% more expensive than non-organic produce.
Organic vegetables offer several advantages over their non-organic counterparts:
• They are generally tastier, and because they are not treated in the same way, are usually fresher than non- organic products.
• They are good for a healthy lifestyle as they contain no pesticides and chemicals.
• The fact that no pesticides or herbicides are used in their production means that they are much ‘greener’. For example, they help to reduce the problems associated with nitrates in the soil and water supplies.
• On the downside, organic vegetables are generally less uniform, and as far as some consumers are concerned, are less attractive in appearance. This lack of uniformity has also been a problem in the past with supermarket buyers who have traditionally looked for uniformity in fresh products to aid merchandising and marketing in retail outlets.
• Generally, organic vegetables are more expensive than their non-organic counterparts Currently, on average they are somewhere in the region of 40% more expensive.
In the UK, anyone wishing to claim that their produce is organic, and market it in this way, needs to obtain the approval of the Soil Association, which checks the organic credentials of a supplier. For example, in this case, they check the conditions under which the produce is grown and how the seeds used.
Two interesting developments are taking place in the organic produce market. One is the growth of home supplies. This is where the producer supplies direct to the householder. There are a variety of ways of doing this. Some smaller growers use mail-shots and leafleting to build up a client base. They then deliver locally to customers who order from a list. Very often the supplier will simply make up a box of a pre-determined value or weight containing a selection of vegetables which are in season and ready for picking. Other suppliers are using a similar system, but take their orders via the Internet. This is particularly suitable for this type of product as customers can check on a regular basis what is available and order from home. The produce is then delivered at a pre-arranged time.
The second development in the organic produce market is the growth of farmers’ markets. These markets are usually run by local authorities, often on Saturdays or Sundays. Local and other producers attend these markets, paying a small fee for a stall and then sell their produce direct to the consumer. These farmers’ markets partly
came about as a result of the frustration felt by many farmers and growers at the way they were being treated by retailers and at the margins they were receiving. In addition, such markets have been successful because consumers feel they are getting fresh produce at lower prices than they might be able to obtain through supermarkets.
Despite the growth in the market for organic vegetables, after 18 months in his business, John is worried. Quite simply, his business has not been as successful as he envisaged it would be, and as a result he is not earning enough to make a living. The real worry is that he is not sure why this is the case. His produce, he believes, is as good as anything in the business. He is a very good grower and the land he has leased is perfect for the range of produce he wishes to grow. Starting with organic potatoes he now produces a range of organic vegetables including beans, sprouts, carrots, lettuce and his latest venture organic tomatoes and corn grown in poly-tunnels. Although customers he currently supplies are very loyal to John, indeed many are friends and acquaintances he has known over the years when he grew vegetables in his back garden, there are simply not enough of them. As a result, his turnover which increased rapidly over the first year of the business has for the last six months has stagnated. He mainly supplies locally and has tried to increase his customer base by taking leaflets out and posting them through letterboxes in the area. He has done this by dividing up the housing areas in a ten-mile radius around his growing area and dropping leaflets throughout the area to as many houses as he can cover on a systematic basis. Only some 2% of customers have responded with an order, usually contacting by telephone. These customers seem to come from the middle class areas. He has considered taking a stall at one of the farmers’ markets, the nearest of which is some 40 miles away and operates one day per month, but he realizes this would not be enough to reach the turnover levels he requires. He has in the past supplied one or two local restaurants and hotels, but usually only when they have contacted him because they have had a problem with their existing supplier. He has never followed these up. His growing area is currently too small to supply a major retailer, although he has been approached on an informal basis by the buyer of a voluntary chain of local grocers representing some 40 retail outlets in the county.
John is wondering where he goes from here. He cannot understand why his superior products are not selling well. A friend has suggested that John needs a more strategic approach to marketing. John is not convinced. He feels his business is too small to warrant any kind of marketing, never mind strategic marketing, and he has always felt that a good product should sell itself. He is, however, anxious to grow the business and become a leading organic vegetable supplier.

You were hired by John as a strategic analyst to develop a detailed strategic management process for this company. What shall you do? And how to direct the company in the future? Elaborate your answer.