The cost of doing business and establishing retail pricing are directly related to a business's bottom line. Therefore, if there is a change in the cost of goods, it will affect the profitability of a business that has set prices for its products. 1. How might profitability and market share be affected if retail pricing fluctuates depending on the cost of raw materials? 2. Why do you believe that to be the case? 3. Why is it important that a company's pricing objectives fit well with its marketing objectives? Please number your response for each question (1, 2, and 3).
1.Global marketplaces that are volatile and unstable have wide-ranging effects on manufacturing companies. Unexpected difficulties are causing supply chains to become unstable and making it harder for firms to be profitable. These difficulties range from rising energy prices to unexpected swings in raw material costs. It is up to manufacturers to decide whether to absorb additional costs, come up with new ways to reduce the costs, or pass price increases on to customers who are already reluctant to spend money. Commodity price volatility may not just be a temporary phenomenon, as supplies of many raw materials are becoming harder to secure. It is essential to carefully consider how much raw materials you get because if you order too many, they could deteriorate and eventually lose their usability. However, if you don't buy enough raw materials, the price can go up and force you to change your spending. You must understand the factors that affect price volatility in order to manage your raw materials effectivel
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