Hello everyone,

Customer Relationship Management (CRM) can be defined as the techniques, strategies,

activities, and technologies utilized by a company in managing its communication with
potential and loyal customers (Kulpa, 2017).

 What is the impact, if any, of CRM on customer retention and loyalty to brands?

It is imperative to note that data is the live wire in any company as regards to the
technological age we presently are in.

CRM offers various impacts on customer retention and loyalty to brands, which I would
outline a few below (Anderson, 2013).

CRM helps companies to gain insights into customer behavior.

CRM helps companies to determine their current and future prospects by setting targets for
their proposed future.

CRM helps companies to set up communication channels that are most suitable for each
customer.

CRM helps companies create a consistent experience that culminates in customers trusting
the brand and in turn results in customer loyalty.

 Why is e-CRM important in the present day?

E-CRM refers to the electronic means of implementing customer relationship management.

Due to the technological age, we are in, there are various communication channels being
utilized by customers in transacting with companies (Diksha, n.d.).

E-CRM provides customers with various options in communicating with companies, thereby
setting a mindset that they are valued, and their preference is well considered.

E-CRM provides companies with real-time data of customers, products, and performance
across the business.

 How can you explain the customer gap under customer orientated marketing strategy?

Customer Service Gap: this refers to the gap between the actual needs of a customer and what
an organization provides the customer with (Haije, 2019).
Customer Orientated Marketing: this refers to everything you do is finding out what the
actual need of your customer is and building your marketing strategy around it for customer
satisfaction (Sherman, 2021).

The aim for every business is to ensure that they satisfy their customers to the point of
turning them into returning/loyal customers. Customer-orientated marketing helps businesses
inculcate customers' needs into their strategies to help build brand loyalty.

References:

Diksha, S. (n.d.). E-CRM: Meaning, Evolution and Benefits. Retrieved from

https://www.businessmanagementideas.com/crm/e-crm/e-crm-meaning-evolution-and-
benefits/3688

Haije, E. G. (2019, August 1). What is the Customer Experience Gap? Retrieved from
https://mopinion.com/what-is-the-customer-experience-gap/

Kulpa, J. (2017, October 24). Why Is Customer Relationship Management So Important?

Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2017/10/24/why-is-
customer-relationship-management-so-important/?sh=51bd43187dac

Sherman, F. (2021, October 25). Customer-Oriented Marketing Strategy. Retrieved from

https://smallbusiness.chron.com/customeroriented-marketing-strategy-65737.html

Word Count: 392

Hello everyone,

Profit Margin Ratio: this refers to the gross profit of a company in net sales. The formula for
the profit margin ratio is = Net Income ÷ Net Sales (Heisinger & Hoyle, 2012).

For Continental Resources, Inc. the profit margin ratio is $605,561 ÷ $2,586,470 = 23.41%.
This depicts that the profit margin ratio for Continental Resources, Inc for the year 2020 is
23.41% which is a good ratio.

Return on Assets: this refers to how the net income of a company is generated in average
total assets. The formula for the return on assets ratio is = Net Income ÷ Average Total
Assets.

For Continental Resources, Inc. the return on assets ratio is $605,561 ÷ $7,316,549= 8.28%
(AnnualReports.com, n.d.). This depicts that the return on assets ratio for Continental
Resources, Inc for the year 2020 is 8.28% which is a good ratio.
Current Ratio: this refers to the capacity of a company’s current asset in offsetting its current
liabilities. The formula for the current ratio is = Current Assets ÷ Current Liabilities.

For Continental Resources, Inc. the current ratio is $14,633,098 ÷ $5,532,418 = 2.64%. This
depicts that the current ratio for Continental Resources, Inc for the year 2020 is 2.64% which
is a good ratio (Continental Resources, n.d.).

Debt to Equity Ratio: this refers to the company’s balance of liabilities and shareholders’
equity utilized in funding assets. The formula for the debt-to-equity ratio is = Total
Liabilities ÷ Total Equity.

For Continental Resources, Inc. the debt-to-equity ratio is $5,532,418 ÷ $6,422,725 = 0.86%.
This depicts that the debt-to-equity ratio for Continental Resources, Inc for the year 2020 is
0.86% which is a good ratio.

The above results from the assessment do indicate that Continental Resources, Inc. has a
good performance ratio and is performing well financially. In as much as just one of each
financial ratio, the category was selected for analysis in this submission, I would recommend
that before investing in Continental Resources, Inc that all financial ratios are analyzed for a
holistic view of the company’s financial strength and long-term growth pattern.

References:

AnnualReports.com. (n.d.). Continental Resources, Inc. Retrieved

from https://www.annualreports.com/Company/continental-resources-inc

Continental Resources. (n.d.). Operations. Retrieved from https://www.clr.com/operations/

Heisinger, K., & Hoyle, J. B. (n.d.). Accounting for Managers. Retrieved from
https://2012books.lardbucket.org/books/accounting-for-managers/index.html

Word Count: 377

Hello everyone,

 What are the risks of posting information on social media for advertising, marketing,
and sales? Provide examples.

Social media marketing can simply be defined as the usage of social media applications and
websites to market a company’s products or services.

While social media marketing does have a huge impact on the company’s utilizing this means
for marketing, advertising and sale, there are a few risk factors that need to be considered and
measures put in place to curb them from manifesting before delving in.

Security Breach: social media is prone to hacking by hackers who not only do it gain
unauthorized access to the company’s confidential documents or finances but also for the fun
of just causing pandemonium within the company and destabilizing its operations as a sport
(Robinson, 2013).
Public Relation Crisis: In engaging with the public directly, you are expected to make
mistakes at some point in time, but in the case of social media those mistakes can go viral and
spiral out of control in a minute second and cause the company reputational damage.

Legal Complications: there is a need to understand the law governing advertising in social
media and the platforms utilized because the information posted or shared lives on forever
and can be pulled out anytime to use against you as evidence if the need arises.

 How can an organization use all four social media zones safely and appropriately?
Provide examples.

Social Communities (Zone 1): this refers to social media channels that focus on activities and
relationships and sharing same with persons who share the same interest e.g LinkedIn and
Facebook (Kalorth, n.d.). In utilizing this kind of channel, the organization must be wary of
the kind of information and the volume that is posted.

Social Publishing (Zone 2): this refers to social media channels that focus on distributing
information that is updated regularly to different audiences e.g. Blogspot, Youtube. In
utilizing this kind of channel, the organization must avoid putting out information that is false
and misleading to avoid public relations crisis.

Social Entertainment (Zone 3): this refers to social media channels that create opportunities
for fun and enjoyment e.g. MySpace, Restaurant City. In utilizing this kind of channel, the
organization must ensure their internet security is active as most social entertainment
channels are prone to Malware.

Social Commerce (Zone 4): this refers to social media channels where people buy and sell
products or services e.g Facebook, Tripadvisor. In utilizing this kind of channel, the
organization must ensure there is personnel whose role is strictly tied to managing the e-
commerce platform.

References:

Gartenstein, D. (2019, February 4). Disadvantages of Advertising With Social Media.

Retrieved from https://smallbusiness.chron.com/disadvantages-advertising-social-media-
18746.html

Kalorth, N. (n.d.). The Four Zones of Social Media. Retrieved from

https://www.academia.edu/29722974/The_Four_Zones_of_Social_Media

Robinson, C. (2013, September 23). The Risks Associated with Social Media Marketing.
Retrieved from https://www.business2community.com/social-media/risks-associated-social-
media-marketing-0617722
Word Count: 473

Hello everyone,

Trend Analysis can be defined as the process of analyzing financial information from
different periods including the current period for further review (AccountingTools, 2021).

The formula for calculation the trend analysis percentage is as shown below:

Current Year Value / Base Year Value x 100 = Trend Analysis Percentage

Continental Resources, Inc. is a company that engages in the exploration, development, and
production of crude oil and natural gas exclusively in the north, south, and east regions of the
United States. Their core holdings and proven reserves are in North Dakota and Oklahoma
while being categorized as one of the leading deep oil inventories in the industry
(AnnualReports.com. n.d.).

As shown below, is the balance sheet and income statement depicting the trend of 3-line
items.

The first table illustrates the balance sheet information of Continental Resources, Inc for the
last 4 years ranging from 2017 – 2020.

Balance Sheet data as of December 31 (In Millions)

Description 2020 2019 2018 2017

Total assets $14,633,098 $15,727,907 $15,297,947 $14,199,651
Trend analysis 103.05% 110.76% 107.73% 100.00%
percentage
Long-term debt, $5,532,418 $5,326,514 $6,353,691 $6,579,916
including
current portion
Trend analysis 84.08% 80.95% 96.56% 100.00%
percentage
Total equity $6,422,725 $7,108,351 $6,421,861 $5,131,203
Trend analysis 125.17% 138.53% 125.15% 100.00%
percentage

Income Statement data as of December 31

Description 2020 2019 2018 2017

Total revenues $2,586,470 $4,631,947 $4,709,586 $3,120,828
Trend analysis 82.87% 148.42% 150.91% 100.00%
percentage
Net income (605,561) 774,473 989,700 789,447
(loss) (2)
Trend analysis 76.71% 98.10% 125.37% 100.00%
percentage
Net income (596,869) 775,641 988,317 789,447
(loss)
attributable to
Continental
Resources (2)
(3)
Trend analysis 75.61% 98.25% 125.19% 100.00%
percentage

 What do you observe in the linear trends (i.e., are values increasing or decreasing)?

The calculations have clearly shown that from 2017 were increases across board both in 2018
and 2019, but the company experience decrease in 2020.

 What are the trends on a common-size basis?

The common-size trends for the balance sheet it is clear seen that there is a constant above
(100%) for both the total assets and total equity.

 What would be your next steps in completing a thorough analysis of the trends?

The trends have shown that the company experienced a decrease in revenue in 2020 after a
two-year growth impact, which decreased was caused by the Covid 19 pandemic that crippled
its operations to the barest minimal for a better part of the year. So, the company needs to
thrive to push the total revenue up and strategize on a business model to break even with.

References:

AccountingTools. (n.d.). Trend Analysis Definition. Retrieved from

https://www.accountingtools.com/articles/trend-analysis-definition-and-usage.html

AnnualReports.com. (n.d.). Continental Resources, Inc. Retrieved

from https://www.annualreports.com/Company/continental-resources-inc

Continental Resources. (n.d.). Operations. Retrieved from https://www.clr.com/operations/

Hello everyone,

Marketing Communication Budget refers to the budget set aside by companies to monitor and
evaluate the expenditure and effectiveness of their operations in line with the planned budget.

It is imperative that before a marketing communication budget is created, the company’s

marketing objectives in terms of the need analysis for the marketing communication must be
determined to ensure the purposefulness of the plan.

 What factors would you consider when making marketing communication and
budget allocation decisions?

There are various factors to be considered when making marketing communication and
budget allocation decisions based on the industry the company is resident with. I have
outlined four major factors commonly considered below:

Long-Term Vision and Goals: It is important to plan marketing communication activities to

be centered on the value proposition for a long-term basis to enable the business to benefit
and get familiar with the target market needs (Smyth, 2020).

Available Budget: It is important to separate the budget for marketing research and
promotional activities from the operational budget of the company because the marketing
budget should be funds set aside specifically for core marketing needs.

Technology Needs: It is important to factor in the funds, time, and effort required for
technological infrastructure in any marketing communication plan because marketing in this
jet age has gone beyond the conventional traditional means of marketing and has become
more technologically driven.

Evaluating Results: It is important to set a key performance index (KPI) for any marketing
activity in other to determine its efficiency and keep track of the changes that occur both in
brand loyalty and sales.
  How do these factors relate to the relative allocations between advertising and sales
promotion?

It is important to note that marketing strategies and objectives based on advertising and sales
promotion are different at each stage of the product life cycle.

At the early stage, it is necessary to penetrate the market with intense advertising and sales
promotion to achieve reasonable product awareness within the market (Manjulata, n.d.).

At the growth stage, the need analysis at this stage would be continuous advertising to
maximize the market share.

At the maturity stage, the need analysis for this stage would be revised target market
advertising and sales promotion to conquer new territories and market share.

At the decline stage, the need analysis for this stage would be to reduce the advertisement and
sales promotion to be barest minimal and re-strategize on the consumer needs in line with the
target market and market share.

References:

Manjulata, M. (n.d.). Factors Affecting Promotion Mix. Retrieved from

https://www.economicsdiscussion.net/marketing-2/factors-affecting-promotion-mix/31800

Smyth, D. (2020, September 17). How to Prepare a Marketing Communication Budget.

Retrieved from https://smallbusiness.chron.com/prepare-marketing-communication-budget-
62386.html

University of Minnesota Libraries. (2015, October 27). Principles of Marketing. Retrieved

from https://open.lib.umn.edu/principlesmarketing/

Word Count: 456

Hello everyone,

Capital budgeting refers to the process of planning involved in determining if an

organization's long-term investment should be made or not (Lumen, n.d.).

Risk refers to the choice of action and in-action that can result in a loss.

There are various risks associated with capital budgeting, but I have identified three major
risks that I believe are most significant in this category.
1. Operational Risks: refers to the loss accrued from business operations because of
inefficiency, failed internal or external processes (Auditboard, 2018).

Examples of operational risks are as follows below:

Internal and external fraud – this refers to fraud that is carried out against the business both
internally and externally that hampers on its operations.

Technological risks – this refers to technological hitches that hamper business operations that
could arise from automated machinery or artificial intelligence equipment.

Physical events – this refers to events that can hamper business operations, such as natural
disasters.

Employee conduct – this refers to a scenario of poor customer service that can lead to poor
sales turnover and depreciating company reputation.

2. Financial Risks: refers to the possibility of incurring losses on an investment or

business (Calle, 2020).

Examples of financial risks are as follows below:

Market risks – this refers to economic uncertainties that affect the business market.

Credit risks – this refers to the possibility of being unable to pay up a loan on time or at all.

Liquidity risks – this refers to the possibility of being unable to fulfill the terms of a business
based on poor financial management.

3. Market Risks: refers to the changes that arise in the business market of the
organization based on economic uncertainties (Hayes, 2021).

Currency risks – this refers to the difference in the price of one currency from the other
during the business transaction.

Equity risks – this refers to the changes that arise from the stock market investments.

Commodity risks – this refers to the changes that arise from the price of commodities.
References:

Auditboard. (2018, October 12). What Is Operational Risk Management? The Overview.
Retrieved from
https://www.auditboard.com/blog/operational-risk-management/#:~:text=Operational%20risk
%20is%20the%20risk,be%20directly%20or%20indirectly%20financial.

Calle, P. J. (2020, August 11). 4 types of financial risks. Retrieved from

https://www.piranirisk.com/blog/4-types-of-financial-risks

Hayes, A. (2021, May 22). Market Risk. Retrieved from

https://www.investopedia.com/terms/m/marketrisk.asp

Lumen. (n.d.). The Relationship Between Risk and Capital Budgeting. Retrieved from
https://courses.lumenlearning.com/boundless-finance/chapter/the-relationship-between-risk-
and-capital-budgeting/

Word Count: 410

Hello everyone,

1. How have the companies been successful in charging high prices to the brand’s consumers,
despite the low costs of manufacturing?

I will be focusing my submission on two brands that have been successful with charging high
prices to consumers, despite their low costs of manufacturing as outlined below.

1. Mercedes Benz

2. Apple

Mercedes Benz is one of the famous German automobile brands in the world, which was
created because of the merger between Daimler-Motoren-Gesellschaft (DMG) and Benz &
Cie. In 1926 (Bohatala, n.d.).

Mercedes Benz has over the years been known for its wide range of luxury automobiles and
has strategically placed its premium brand for the high-class personalities.

The company has been successful in charging high prices because they have maintained
focus on producing high quality first for the premium market, where the consumer’s need is
centered on the value, they are receiving from the product based on quality and not price
(Bhasin, 2019).

The company utilizes the premium price strategy and their pricing is dependent on the price
sensitivity of different markets.

Apple is one of the famous tech companies in the world and was founded in 1976 by Steve
Jobs and Steve Wozniak. In 2013, Apple’s CEO Tim Cook during an interview with
Bloomberg Businessweek said, “We never has an objective to sell low-cost phones” (Doe,
2021).
The company has always been focused on building elegant, unique, and attractive products
for its consumers. Apple operates a value-based pricing strategy and relies on product
differentiation to create high demands for its products.

Apple has been successful in charging high prices because they have maintained focus on the
high-end products and creating the halo effect that has kept consumers in need of the new
Apple products.

2. How is customer information used as a part of the pricing strategy?

We are in the technology age, where data is a core factor in any organization. Customer
information in terms of pricing strategy helps the company identify with its target market and
evaluate its geographical reach.

In terms of market pricing segmentation, it helps the company define the pricing for each
consumer based on the perception of the market segment values.

References:

Bhasin, H. (2019, February 7). Marketing mix of Mercedes Benz. Retrieved from
https://www.marketing91.com/marketing-mix-mercedes-benz/

Bohatala. (n.d.). Mercedes Benz Marketing Strategy Analysis. Retrieved from

https://bohatala.com/mercedes-benz-marketing-strategy-analysis/

Doe. (2021, May 8). Apple’s Pricing Strategy. Retrieved from

https://globalmarketingprofessor.com/apples-pricing-strategy/

Lee, B. T. (2015, September 9). How Apple became the world’s most valuable company.
Retrieved from https://www.vox.com/2014/11/17/18076360/apple

Word Count: 415

Hello everyone,

 Be specific in describing the component line items of each

 Identify the individuals that would be involved in developing the budgets

A budget income statement can be defined as the predicted forecast of revenue, expenses, and
profit for a specific period (AccountingTools, 2021).

While the income statement budget requested us for a year, it is also important to note that
the budget income statement is better presented in comparison with other budget periods in
other to spot the differentials that could help the company identify growth patterns in terms of
profit or loss from the previous year’s report.

Line Item Source Budget The year 2020

Net Sales Sales Budget $2,411,159,400

Cost of Goods Sold Product Expenses x Sales Budget Units $1,159,999,992
Gross Margin $1,251,159,408
SG&A Expenses SG&A Budget $3,447,540
Net Income $1,247,711,868

It is imperative to state that budget development is a joint effort by the entire team, which
cuts across various cadres within the organization, ranging from the managers to the
accounting team and then to executives who inculcate the information provided to draft the
budget proposition (Ingram, n.d.).
Departmental Managers: They provide the accounting team with relevant information on
departmental expenses and revenue contributions.

Accounting Team: The account manager creates reports such as sales and payroll documents
and provides them to the company executives to help in analyzing the cost trend of the
company.

Company Executives: They are tasked with presenting the proposed final budgets to the
board of directors for approval.

References:

AccountingTools. (2021, April 12). Budgeted income statement definition. Retrieved from
https://www.accountingtools.com/articles/2017/5/17/budgeted-income-statement

Ingram, D. (n.d.). Who Handles the Budget in a Corporate Business? Retrieved from
https://smallbusiness.chron.com/accounting-hierarchy-workplace-20991.html

Word Count: 272

Hello everyone,

Product Life Cycle refers to the stages a product undergoes after introduction into
the market depicting its growth pattern (University of Minnesota Libraries Publishing,
n.d.).

There are four stages of the product life cycle that every product undergoes as
outlined below.
Introduction: this refers to the new product being introduced to the market and
without any rise in demand.

Growth: this refers to the stage when the new product has been accepted into the
market based on increased sales and demand.

Maturity: this refers to the stage when the product sales have reached a balanced
level and new customers acquisition is at a slow pace.

Decline: this refers to the stage when product sales begin to decline and demands
level in on the downward trend.

Two products I would be examined based on my familiarity with their business

modules are OPay in their maturity stage of the product life cycle and Moniepoint in
their early stage of the product life cycle.

• How is the marketing different for the two products?

OPay is a more established household name in the financial services industry with its
high point in providing POS services on financial transactions. Their marketing
strategy is centered on taking over the communities by providing employment
opportunities to persons of interest that are unemployed with the aim of growing
their network. Billboards, TV ads, Mobile Ads e.t.c, are their strong points in
advertising their product.

Moniepoint is at their growth stage in the product life cycle and has been accepted
into the market and offer the same POS services on financial transactions as OPay.
Their marketing strategy is centered on providing fair pricing and lower commissions
for transactions that are better than their strong competition via their POS services,
which is OPay. Their marketing platforms are basically structures on utilizing sales
personnel to drive the visibility of the brand.

• What improvements to the marketing strategy would you recommend for each if
you were the marketing manager?

As a marketing manager for the OPay brand, I would recommend that emphasis is
made on showcasing other key benefits they provide that are mostly neglected in
their Ads, which includes Commissions on aggregate accounts that are second to
none in their industry, utilization of sales personnel that are indigenes of rural areas
which is also a target market for the brand.

While as a marketing manager for the Moniepoint brand, I would recommend that
emphasis is made on utilizing other means of advertising other than sale personnel
alone, such a Billboard Ads, TV Ads, and Mobile Ads.

References:

Levitt, T. (1965, November). Exploit the Product Life Cycle. Retrieved

from https://hbr.org/1965/11/exploit-the-product-life-cycle

Moniepoint. (n.d.). Features & Benefits. Retrieved

from https://moniepoint.com/index.html#headerDetails1

OPay. (n.d.). About Us. Retrieved from https://opayweb.com/about-us/

University of Minnesota Libraries Publishing. (2010). 7.2 Managing New Products: The
Product Lifecycle. Retrieved
from https://open.lib.umn.edu/principlesmarketing/chapter/7-2-managing-new-
products-the-product-life-cycle/

Word Count: 472

Hello everyone,

Differential Analysis can be defined as exploring various costs and benefits in seeking
alternate solutions to a specific business opportunity in determining the most cost-efficient
solution to implement (Lumen, n.d.).
The financial data to be represented in the differential analysis would culminate those to be
included and excluded as outlined below.

Included: Continental Resources, Inc. should include all revenues and costs associated with
crude oil and natural gas production operations in its differential analysis.

Excluded: Continental Resources, Inc. should exclude all revenues and costs not related to
the production of crude oil and natural gas.

It is imperative to state that in differential analysis, the end goal is always to recommend the
alternative with the highest profit margin after calculation.

Below are the revenues and costs to be considered in an evaluation to drop or keep a
customer or product line.

For Customer: Continental Resources, Inc. would evaluate the profit margin differentials in
keeping or dropping a customer. This can be achieved by reviewing the variable costs, sales
revenue, and fixed costs.

For Product Line: Continental Resources, Inc would evaluate the expenses, facilities, salaries
of Personnel associated with each product line in determining their most cost-efficient
product.

In other to understand why or why not sunk and opportunity costs are to be considered in the
differential analysis, we must first understand what sunk and opportunity costs are in this
context.

Sunk Costs: this refers to costs that a business has incurred, which cannot be recovered
(AccountingTools, 2021). Yes, it is necessary that the sunk costs are considered in the
differential analysis to enable the company to establish unrecovered costs that are associated
with the product line in other to determine the profit margin.

Opportunity Costs: this refers to the benefits or profits lost by a business because of selecting
an alternative over another (AccountingTools, 2021). Yes, it is important that the opportunity
costs are considered in the differential analysis to help evaluate the lost profits of selecting an
alternative to the profits derived by the alternative in other to determine the profit variation.

References:
AccountingTools. (2021, April 12). Opportunity cost definition. Retrieved
from https://www.accountingtools.com/articles/what-is-opportunity-cost.html

AccountingTools. (2021, June 25). Sunk cost definition. Retrieved

from https://www.accountingtools.com/articles/what-is-a-sunk-cost.html

Lumen. (n.d.). Differential Analysis. Retrieved

from https://courses.lumenlearning.com/managacct/chapter/criteria-used-in-managerial-
decision-making/

Word Count: 400

Hello everyone,

My selection for this submission would be OPay, which provides financial services in my
region.

OPay was launched in 2018 and is amongst the pioneers of mobile-based platforms for
payment, transportation, and other important services that accrue to people's lives.

· Explore and determine if the local brand you picked has a well-defined and
executed brand strategy?

OPay came into the financial services business when the need for it was high due to difficult
means of accessing specific financial services through the traditional banking system. OPay
serves millions of users every day by providing a platform to send and receive money, pay
bills, transportation, and other services (OPay, n.d.).

In reference to a 2018 report by McKinsey & Company on the Growth and Innovation in
African retail banking (Middle East Business, n.d.). It revealed that over 57% of the people in
Africa are without a bank account

 What are the elements of the local brand strategy that enabled it to achieve this
success?

OPay saw the need of the people to be able to access basic financial services to enable them
to invest in their education and businesses.

The local brand strategy OPay introduced to enable them to achieve this fit, is by providing
an opportunity to individuals to partner with them, by providing free POS machines and
branded OPay kiosks as startup businesses for locals, who tend in turn operate from those
kiosks as OPay partner outlets for all financial services provided by OPay.

This move brought rigorous banking processes to the local communities for easier access to
financial services for both literate and non-literate people. Also, this provided employment
for locals who were unemployed and without start-up capital for their desired businesses.

References:
Middle East Business. (n.d.). 57% of Africa’s population lacking any form of bank account.
Retrieved from https://middleeast-business.com/57-of-africas-population-lacking-any-form-
of-bank-account/

OPay. (n.d.). About Us. Retrieved from https://opayweb.com/about-us/

Word Count: 314

Hello everyone,

It is important to first define Contribution Margin and Contribution Margin Percent before
delving into how it is determined in Continental Resources, Inc.

Contribution margin is simply defined as the sales revenue minus variable costs of a product
or service delivered (Gallo, 2017).

Contribution margin percent which is also known as contribution margin ratio is simply
defined as the difference between a company’s sales and variable costs, which is represented
as a percentage (AccountingTools, n.d.).

· Identify which specific variables should be included in the calculation.

The contribution margin is calculated as depicted below.

Sales revenue – Variable costs = Contribution margin

The variable costs to be included in this calculation as related to the business module of
Continental Resources, Inc. are the costs related to the main equipment that is essential for
processing plants and utilities.

· Illustrate your explanation by calculating the contribution margin and

contribution margin percent using hypothetical values.

Continental Resources, Inc. produces and sells a barrel of crude oil at $45 with a fixed cost
on overall production stipulated at $96,666,666 per month.

Continental Resources, Inc. incurred a variable cost of $3.27 per barrel of crude oil, which
results in the calculation of the contribution margin as follows below.

$45 sales revenue - $3.27 variable costs = $41.73 contribution margin

Contribution margin ratio = 92.74% (percentage)

The contribution margin and contribution margin ratio do help Continental Resources, Inc. to
know that 92.74% of each product sale is available as a contribution to the total monthly
expenditure of $96,666,666 in other to determine their profit target.

· Explain what your calculated results tell you about the company’s sales and cost
structure.

Continental Resources, Inc. produces 160,500 barrels of crude oil per day, and the total
calculation of the production of crude oil per month is calculated as follows below.

160,500 barrels per day x 30 days = 4,815,000

4,815,000 barrels per month x $41.73 contribution margin = $200,6929,950 total sales
revenue per month

$200,6929,950 total sales revenue per month - $96,666,666 total monthly expenditure =
$104,263,284 total monthly profit target.

The above calculations depict that Continental Resources, Inc is in a good place financially as
much as they maintain an increased production level per day as the fixed costs for production
remains the same.

References:
AccountingTools. (2021, November 25). Contribution margin ratio definition. Retrieved
from https://www.accountingtools.com/articles/2017/5/16/contribution-margin-ratio

Gallo, A. (2017, October 13). Contribution Margin: What It Is, How to Calculate It, and Why
You Need It. Retrieved from Contribution Margin: What It Is, How to Calculate It, and Why
You Need It

Word Count: 414

Hello everyone,

 What roles do personal or demographic factors play in consumer/customer decision to

purchase product or service?

In other to discuss the factors that govern consumer decisions,

first, we need to define consumer decisions.

Consumer Decision: this refers to the steps a customer undergoes

in deciding if, where and what to buy.

There are various factors that come into play when deciding to
purchase a product or service, I would expatiate on the personal
factors below.
Personal factors refer to individual attributes and peculiarities such
as personality, lifestyle, life stage, and age (Lumen. n.d.).

 How do these factors influence consumer behavior?

Consumer behavior refers to the spending patterns and buying

capacity of each consumer, as this connotes why a consumer would
or would not purchase a product or service (Management Study
Guide. n.d.).

Personality: this refers to the overall attributes of a person that

distinguishes them. In this case, the consumer would respond to the
product or service offered based on their persona.

Lifestyle: this refers to the consumer's way of living which consists

of their interests, activities, opinions of themselves and others. In
this case, the consumer would respond to the product or service
offered based on their interests and other variables associated with
this lifestyle.

Life Stage: this refers to notable life events and circumstances

surrounding the consumer at that moment. In this case, the
consumer would respond to the product or service offered based on
the present circumstances surrounding their life.

Age: this refers to the consumer’s age. In this case, the consumer
would respond to a product or service offer based on how appealing
it is to their age bracket.

References:

Lumen (n.d). Factors Influencing Consumer Decisions. Retrieved

from https://courses.lumenlearning.com/wmopen-
principlesofmarketing/chapter/reading-situational-factors/
Management Study Guide. (n.d.). Personal Factors Affecting
Consumer Behaviour. Retrieved from Personal Factors affecting
Consumer Behaviour
Hello everyone,

Continental Resources, Inc. is a company that engages in the exploration, development, and
production of crude oil and natural gas exclusively in the north, south, and east regions of the
United States. Their core holdings and proven reserves are in North Dakota and Oklahoma
while being categorized as one of the leading deep oil inventories in the industry
(AnnualReports.com. n.d.).

Continental Resources Inc. is one of the leaders of well safety and environmental stewardship
because of being one of the pioneers to deploy horizontal drilling on a large scale. They have
been in the industry for over 50years with a track record of a true oil and natural gas
innovator

As documented on the company’s annual report and 10K, the capital expenditure for the year
2020 was approximately $1.16 billion which was 3% less than the forecast set out for the
year 2020, thereby achieving to produce and deliver 160,500 barrels of crude oil per day and
produced and delivered 837.5 cubic feet a day of natural gas with a production expense per
BOE (Barrels of crude oil equivalent) at $3.27 for the year 2020 (Continental Resources.
n.d.).

Each cost would be categorized into the three manufacturing cost categories below.

Direct Costs: this refers to the costs related to the main equipment that is essential for
processing plants and utilities.

Indirect Costs: this refers to the costs associated with transporting equipment, materials,
stationeries, and mobile offshore equipment.

Overhead Costs: this refers to the costs associated with operating a production facility that
can be categorized into production, maintenance, security, and others.

These costs can further be broken down into fixed, variable, or mixed costs as shown below.

Fixed Costs: can be classified as the costs that remain the same notwithstanding the size of
production.

Variable Cost: can be classified as the costs that change based on the size of production and
manpower in place at a given time.

Mixed Costs: can be classified as the costs that have both fixed cost and variable cost
components in them.

References:
AnnualReports.com. (n.d.). Continental Resources, Inc. Retrieved
from https://www.annualreports.com/Company/continental-
resources-inc

Continental Resources. (n.d.). Operations. Retrieved

from https://www.clr.com/operations/

Hello everyone,

I just inherited a cosmetics manufacturing company that has been in the retail field for over
12 years and while reviewing the data analytics of the products profitable, I found a product
that caught my interest which I believe should pull in more figures with the non-commercial
users than its present performance in the commercial section due to its benefits and demand
of its like in the target market.

1. Identify the product(s) that your company manufactures and sells

The product in the quote is a Kids Sleep Bath with melatonin and is specially formulated to
be hypoallergenic.

This product was selected due to its natural formation and its benefits to kids, which is widely
neglected due to the target market not being educated on its benefits, hence its low
performance. The melatonin in the formulation helps regulate the sleep and wake cycles of
the kids, while hypoallergenic connotes less allergic reaction (for sensitive skin in this case).

2. Develop a statement of your target market(s)

It is in line with our core value of care that we have formulated this sleep bath for kids with
hypoallergic to help kids with sensitive feel less or no allergic reaction while utilizing the
bath wash, and also formulated with melatonin to help regulate the sleep and wake cycles of
the kids, considering how important it is to balance the sleep and wake cycle for kids.

3. Develop a statement of your competitor’s target market(s)

Our goal is to ensure quality skincare to all consumers by recommending our naturally
formulated products into your beauty regimen. Every child deserves the best care on their
skin, and we are here to help every family achieve this.

4. Develop a value proposition statement.

Our mission is to replace chemically formulated skincare globally with our naturally
formulated skincare with innumerable benefits to humanity.

References:

Matson, M. (2020, May 1). Define Your Target Market in 6 Simple Steps (With Examples).
Retrieved from https://www.referralcandy.com/blog/how-to-define-target-market-examples/

Newman, C. (2021, February 17). What is a Value Proposition? (Plus 6 Great Examples and
3 Common Mistakes). Retrieved from What is a Value Proposition? (Plus 6 Great Examples
and 3 Common Mistakes)

Word Count: 360

Hello everyone,

In understanding the role of managerial accounting in a company, it is imperative to define

management accounting, which is the process of providing financial information that guides
management decisions.
Management accounting plays a significant role in the retail industry by helping management
in making important decisions in various segments as highlighted below.

· Product Review: this refers to the accounting report detailing the financial statistics of a
product to help management determine how well a product is doing be it profit or loss, in
other to make crucial decisions for the growth of the business.

· New Product Launch: this refers to the accounting report detailing the step-by-step
financial breakdown of production, which in turn gives the management the exact picture of
what the retail price should be in other to maintain a balanced market with profit in view.

· Promotional Activities: this refers to the accounting report detailing the growth pattern of
each product, thereby giving management a clear picture of both the fast movers and slow
movers in planning for any promotional activity.

· Staffing: this refers to the accounting report detailing the current expenditure on staffing,
as against the return on investment on the number of staff present in the company (Boyd,
2021).

Below are the accepted principles of management accounting.

· Designing and Compiling

· Management by Exception

· Control at Source Accounting

· Accounting for Inflation

· Use of Return on Investment

· Utility

· Integration

· Absorption of Overhead Costs

· Utilization of Resources

· Controllable and Uncontrollable Costs

· Forward-Looking Approach

· Appropriate Means

· Personal Contacts

The principles of management accounting help management streamline past, present, and
future information both financial and non-financial as it relates to the business.
A very crucial management accounting activity that would be useful in organizations is
Internal Control Monitoring, which refers to the rules and regulations set by the management
accountant on operational activities to present overages and losses, which could emanate
from theft, error, or technological breakdowns (Codjia, 2017).

References:

Accountinglearning.com. (n.d.). Principles of Management Accounting. Retrieved from

https://accountlearning.com/principles-management-accounting/

Boyd, K. (2021, January 30). What is management accounting and why is it important for
business? Retrieved from https://www.myob.com/au/blog/management-accounting-
important-business/

Cimaglobal.com. (n.d.). Global Management Accounting Principles. Retrieved from

https://www.cimaglobal.com/Documents/Employer%20docs/web%20pages%202016/global-
management-accounting-principles.pdf

Codjia, M. (2017, September 26). The Key Activities of Management Accounting. Retrieved
from https://bizfluent.com/facts-6750338-importance-budgetary-control-management-
accounting.html

Word Count: 388