Group’s financial activities and performance Essay Example

industry and screening the New Zealand Pohokura development for Fletcher Challenge Energy. Despite pricing challenges at the management level, pricing research remains critical to the company's financial performance with a price determination hierarchy in place.

When it comes to pricing, the management board needs to consider various audiences: government, insurance companies (HMOs), formulary committees, and clients. These groups can affect pricing and pose challenges for the company. To build a new facility, an investment of roughly $4 to $5 million is needed over three to five years. Thus, it's critical for management to understand the product's relative value. During development, forecast models use price estimates. However, determining a worldwide pricing strategy for a new product is complicated by differing prices across countries and varying levels of price sensitivity among audiences.

As a global company, management must recognize the significance of price in predicting profitability. The responsibility of determining prices lies with the management, who consider various factors such as market dynamics, competition, treatment costs, and social/political/economic environment. The pricing research process aims to narrow down the possible price ranges until a launch price (or set of prices) is established, taking into account feedback from experts on product performance and future prices. Discussion with experts is crucial in pricing research analysis at each milestone.