Chapter 5 -5.1 Revenue: which are related to the sale of goods or services. (an increasing in equity resulting from the sale of goods or services) Expenses: which are the costs related to the revenues. Drawing: which are the owner’s withdrawals for personal use. Purpose of expanding the system: -The new accounts in the equity section of the ledger have one main purpose. -Provide essential information about the progress of the business. -Information need by managers and owners
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decision points since strategic moves don’t have a single possible pathway. For instance‚ a pharmaceutical firm might grow its global footprint by first broadening its product arenas then using this foundation to broaden its geographic market arenas. 5. ECONOMIC LOGIC The economic logic element
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There is continuing interest in the study of the forces that impact on an organisation‚ particularly those that can be harnessed to provide competitive advantage. The ideas and models which emerged during the period from 1979 to the mid-1980s (Porter‚ 1998) were based on the idea that competitive advantage came from the ability to earn a return on investment that was better than the average for the industry sector (Thurlby‚ 1998). As Porter’s 5 Forces analysis deals with factors outside an industry
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Domestic drug manufacturers have cast their eyes overseas for growth and four of them have received the certificate of pharmaceutical product (CPP)‚ one of the pre-requisites for obtaining an export licence from the Department of Drug Administration (DDA). According to the DDA‚ Lomus Pharmaceuticals‚ Deurali-Janata Pharmaceuticals‚ Elder Pharmaceuticals and National Health Care Nepal have received the CPP. The CPP is a must for drug manufacturers wanting to export their products. Once the CPP has
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Paint industry Threats of new entrants For a dominant paint manufacturing company which is spread allover India‚ local players act as a very huge threat to them. With a small place for factory and an effective distribution system the local players may pose themselves a huge competition for these nationalized companies. As the local players do not mind quality but sell products for cheap rates they grab more attention of middle class people in India who are of majority. But if the major
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10. CybAero AB Porter Five Forces analysis (Aerospace and Defense Industry) Threat of substitute products and services: MEDIUM There are currently many alternatives to aircraft travel‚ including cars‚ rail‚ and ship. Depending on distance‚ air travel has a significant advantage as far as speed and convenience. High speed rail may be a significant competitor. Also‚ as more people use the internet to teleconference‚ air travel may become less necessary in the business community. Other aerospace products
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to Michael Porter (2008)‚ the key reason for the existence of intense competition and rivalry in the health care industry works as a mechanism to increase value for patients. Competition or opposition has ensured provision of better products and services to satisfy the needs of customers. It is capable of increasing value for customers over time. Quality and process improvements‚ as a result of competition or opposition leads to decreased cost and increased customer satisfaction (Porter‚ M. 2008)
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Louis Rodgers MW 2:00 Homework #2 Gucci Gucci‚ the brand name responsible for many trendy and fashionable products‚ has been in business since the early 1920’s. Their high-end‚ expensive line of clothing and accessories is the standard in the affluent ready to wear luxury product industry. In the middle of the company’s lifespan‚ they lost their way by trying to create too many products that overextended their market. This had a negative impact on the exclusivity of the brand. It wasn’t until
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Michael five forces model Rivalry among competing Firms: this is usually the most powerful of the five competitive forces. The strategies pursued by one firm can be successful only to the extent that they provide competitive advantage over the strategies of other firms (Grobler 2009) Due to China’s incredibly high FDI rate‚ more and more companies are investing into Chinese businesses and strengthening them in both their domestic markets and also on the global front. With the ever increasing
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Positioning in 5 Forces This section will discuss Porters 5 forces of competition and Pompeian is situated in each element. Company’s need not only to focus on the impact of their direct competition but also other external factors that could influence their strategy. Threats of New Entry (Entry Barriers) – Pompeian needs to evaluate how other companies could enter the olive oil market and how quickly they could become a national distributor of the product. This threat is a low one for Pompeian‚ the
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