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<p style=”margin-bottom:0in;margin-bottom:.0001pt;line-height: 200%”>&nbsp;&nbsp; Goodwill is classified as an intangible asset that relates to a lower bid during a work contract. The bidder aims to be granted the bid, and the revenues are expected to increase in future; as a result, his or her bid is accepted. On a contract basis, goodwill is defined as a present value with the expectation to increase revenue in future or take advantage of the future business with the organization exceeding the related cost to recover the cost lost in future from the won contract (Douglas 42). These future costs and revenues are increased to the contracts and included in the next the expected net present value (ENPV) so as to measure cash flows of the future period of the expected value. The figures are then compared and included in the current contract costs.</p>
<p style=”text-indent:.5in;line-height:200%”>Contracts in the real estate industry are examples of expected value from the future business with the organizations through goodwill bids. United Property Partners is one example of companies which offers low contracts bids for housing and land development programs. The expected value of these contracts is expected to increase in future through the increase of cost and revenue expected through cost per materials used in the building. The ENPV of the future cost and revenue for maintenance of the building at cost per repair pricing structure is negotiated in another contract. This enables the company to increase its revenue that it will have lost in the previous bid (Douglas 51). The main reason why the company issues a lower bid is to secure the contract. As the investors of the developed land demand decreased maintenance and increased reliability, the cost of replacements of broken structures by tenants may demonstrate increased revenues for the company as the time for overhaul decreases. In other words, the completion of the projects will see more tenants occupying the houses increasing the cost of maintenance.</p>
<p align=”center” style=”text-align:center;line-height:200%”><b>Discussion Question #2</b></p>
<p style=”text-indent:.5in;line-height:200%”>Alka-Seltzer Plus has positioned its price in the existing market by offering products with a lower price than Vicks NyQuil. The brand of Alka-Seltzer Plus has a congestion fighter which its competitor lacks.&nbsp; The company has already positioned itself in the current market as a company that deals with the upset stomach and all levels of heartburn products. However, customers may not be aware that the company also offers other products for the cold season. As a result, the company is using commercials to ensure that other products rather than what the company is well known for being recognized by customers. I would advise Bayer to effectively utilize the pricing strategy to attract potential customers who use other products such as Vicks and other producers to create goodwill for the future revenues of the business since the company brand is well recognized (Handlin 1).&nbsp; As a result of lower prices than that of other companies including Vicks, I would not recommend for a significant drop but a slight drop which will bring the complete difference to the sales of the organization. However, the introducing price will attract new customers in testing the product. Through this, the organization can increase its business through word of mouth from the satisfied customer who feels that the products are okay.</p>
<p style=”margin-bottom:0in;margin-bottom:.0001pt;text-indent: .5in;line-height:200%”>However, gamble and Proctor producers of Vicks can respond to the strategy of Alka-Seltzer Plus by offering discounts on their products or that similar to that offered by Alka-Seltzer Plus. The process is referred as pricing of status quo. The users who adopt the strategy choose the price which is close or identical to that of its competitors. Through its, not an aggressive approach, the strategy offers low-risk benefits (Handlin 1). Though it is not one of the best strategies of price, Vicks can consider using the same price as its competitor Alka-Seltzer for consumers who are sensitive to the price rather than the brand.</p>
<p style=”text-indent:.5in;line-height:200%”>In the case where Bayer needs to increase profits and where he is making pure profit Alka-Seltzer Plus, there is need to increase prices in other products in the line of increasing organization revenue. The other alternative is opening an operation lessen and reduce the cost of producing products to increase profit (Handlin 1).</p>

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