Limitations of the BCG model. The BCG model is criticised for having a number of limitations (Kotler 2003; McDonald 2003): ➢ There are other reasons other than relative market share and market growth that could influence the allocation of resources to a product or SBU: reasons such as the need for strong brand name and product positioning could compel resource allocation to an SBU or product (Drummond & Ensor 2004). ➢ What is more‚ the model rests on net cash consumption or generation as the
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9-207-056 JANUARY 28‚ 2007 MALCOLM BAKER Multifactor Models There are two parts to this exercise. The first is to evaluate the performance of four mutual funds. And‚ the second is to estimate the cost of capital for two firms. Benchmarking Both parts of the exercise are about choosing an appropriate benchmark‚ either for evaluating past investment returns or assessing a new project. Ideally‚ a benchmark should reflect the opportunity cost‚ or the best alternative investment. If an investment manager’s
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Fred Fiedler developed the first comprehensive contingency model for leadership Fiedler’s contingency model proposes that effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives control to the leader. The model consists of three steps. The first step is identifying the leadership style. To find out the leadership style Fiedler created the least preferred co-worker questionnaire. The questionnaire measures whether a person is
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NOTES ON NEOCLASSICAL (SOLOW) GROWTH MODEL Neoclassical Growth model shows why growth rate of per capita income cannot be maintained through continuous saving and investment. The reason is that as capital per labor rises‚ marginal productivity of capital runs into diminishing returns. Let the production function be : Y = output‚ K = capital stock and L = labor force (population). This function is assumed to be constant returns to scale type ie if you multiply each input by a
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understand the process of changing addictive behaviors is a model of intentional behavior change called the transtheoretical model. Transtheoretical model (also known as the stages- of- change theory) suggests that one of the major challenges in substance abuse treatment is to “creatively adapt to the complexities of change using a selection of change processes dependent upon individual’s readiness" (Diclemente‚ C. C.‚ p. 2‚ 1999). In this model‚ there are three critical elements in the change process:
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The Transtheoretical Model (TTM)‚ also known as the Stages of Change Model‚ was developed in 1983 by Prochaska and DiClemente‚ coming out of their work comparing the experiences of smokers who were able to quit on their own and those who quit using professional treatment (Glanz & Rimer‚ 2005). They proposed that behavior change is not a single event but rather an ongoing process where individuals move through six stages: precontemplation‚ where people are not yet thinking of change; contemplation
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The Presentation of Self (Goffman’s Dramaturgical model) A. The Dramaturgical Model 1. All the World’s a Stage 2. The Performance B. Impression Management 1. The Definition of the Situation 2. Expressions and Impressions 3. Front Stage‚ Back Stage 4. Accounts‚ Excuses‚ & Justifications 5. Self Enhancement and Ingratiation 6. Self Awareness‚ Self Monitoring and Self Disclosure A. The Dramaturgical Model Erving Goffman is probably one of the most important sociologists in relation to
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Additional Practice Problems for Midterm Exam Preparation of Multiple-Step Income Statement Zoomy Zombie Inc. manufactures a wide variety of children’s products including educational toys‚ safety products‚ and outdoor toys. Skellan Davis‚ the company’s controller‚ had to leave unexpectedly while preparing the 2011 financial statements. Prior to his departure‚ Skellan had calculated 2011 income from operations before taxes of $22‚850‚000 (total for all divisions). Additional events and transactions
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Practice Problems Chapter 13 Recommended 1-3‚ 6‚ 8‚ 21‚22‚24 Discussion Questions 13-1. Risk-averse corporate managers are not unwilling to take risks‚ but will require a higher return from risky investments. There must be a premium or additional compensation for risk taking. 13-2. Risk may be defined in terms of the variability of outcomes from a given investment. The greater the variability‚ the greater the risk. Risk may be measured in terms of the coefficient of variation‚ in which we divide
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Making an Inference Directions: Some of the questions following the passages ask you to make inferences from the passages. To infer means to arrive at a conclusion by reasoning from evidence. Synonyms for infer are deduce‚ judge‚ or conclude. If you are told to infer something from a passage‚ you are basically being asked what conclusions can be drawn from the content of the story. Tip: If you replace the word infer with conclude in a question‚ it may make more sense to you. In cities throughout
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