Essay: Dilemma over Pricing

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Essay: Dilemma over Pricing

Sample Essay

In the article “Dilemma over Pricing” The Wall Street Journal, (2010) by Shipman and Cordeiro the authors are telling the audience how companies find it hard to increase their prices and at the same time justify it to their customers. Corporate world in the US is faced with difficult situations as they find that the cost of raw materials is going up and consumers are resisting any increase in price. General Mills as well as some other foodstuff manufacturers are considering raising their prices. The companies that are faced with this challenge are not those only limited to manufacturing foodstuffs since others such as United Technologies Corp., which builds helicopters and other automobiles is in the same situation. Milk, corn, copper as well as oil prices have gone up and these are raw materials for most of the companies affected. On the other hand, companies involved in mining and food growing are benefiting from the rise in the prices of raw materials.

However, most corporate are not willing, to raise their prices as suggested by the journal, in the end it will be economically unviable and they will be forced to bow in. reducing the cost of production is a short term remedy. The authors show that the dilemma is involving all the companies in the manufacturing sector although many may expect companies selling luxuries such as helicopters not affected.  The authors have gone further to show the percentage rise in the prices of different raw materials something that shows that they had done a good research on the topic.

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