structure. 3 I. The question of value • Do firm’s resources and capabilities add value ? • By answering the question of value‚ managers link analysis of internal resources and capabilities with the analysis of environmental opportunities and threats. – Firms resources are not valuable in a vacuum – Resources are valuable when they exploit opportunities and/or
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Volume-variety and design In Chapter 1 the four V’s of operations were described. These were volume‚ variety‚ variation and visibility. The first two of these – volume and variety – are particularly important when considering design issues in operations management. Not only do they usually go together (high variety usually means low volume‚ high volume normally means low variety) but together they also impact on the nature of products and services and processes which produce them. The volume and
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defense wherein the target firm makes its stock less attractive to a potential acquirer is called Choose one answer. | a. a standstill agreement. | | | b. greenmail. | | | c. a poison pill. | | | d. crossing the palm with silver. | | Question 38 Marks: 1 Compared to managers‚ shareholders prefer Choose one answer. | a. riskier strategies with greater diversification for the firm. | | | b. riskier strategies with more focused diversification for the firm. | | | c. safer strategies
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as a good tool to examine the internal environment of a firm. They state that VRIO “stands for four questions one must ask about a resource or capability to determine its competitive potential: 1. The Question of Value: Does a resource enable a firm to exploit an environmental opportunity‚ and/or neutralize an environmental threat? 2. The Question of Rarity: Is a resource currently controlled by only a small number of competing firms? [are the resources used to make the products/services or
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ECONOMIES OF SCALE When a firm moves from small scale to large scale production‚ the average cost of production of each unit falls. The reasons for which this happens are known as economies of scale – they are the benefits which result in the cost savings of large scale operations which come about when a firm expands. In other words‚ economies of scale are advantages reaped by firms engaging in large scale production. There are two types of economies of scale. They are: * Internal economies
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STABILITY STRATEGY Stability strategy implies continuing the current activities of the firm without any significant change in direction. If the environment is unstable and the firm is doing well‚ then it may believe that it is better to make no changes. A firm is said to be following a stability strategy if it is satisfied with the same consumer groups and maintaining the same market share‚ satisfied with incremental improvements of functional performance and the management does not want to take
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consider its effects. Then‚ the essay will assess firms’ decision towards diseconomies of scale and provide solutions. There are several types of economies of scale. One type of internal economies of scale is the Technical economies. Anderton (2000:320) states that the increasing and decreasing retributions to scale in return is the reason economies of scale exist‚ which is known as technical economies. They can arise in the production progress and the firm would benefit from better machinery. Sloman
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identified as the key features of the growth and development. There are some reasons why the generation of new ideas can be crucial for the success of the business. While each company will have its priorities and sector-specific issues to balance‚ firms that are not dynamic in keeping up the current rate of technological advancements might be at risk of losing their competitive edge. Innovation can be a major factor among the market leaders and their rivals. According to Gahan (2014) Apple ’s iPhone
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A theory explaining why firms choose to expand internationally. Not so much a theoretical model giving a “perfect” example‚ more a theory attempting to explain the way it actually is now. A firm will expand overseas when: Ownershsip specific advantages are not possessed by competing firms of other nationalities.. - Knowledge‚ organisation‚ and human skills - Purchasing EOS - Financial EOS - Brand name such as Coca Cola Advantages are specific to the firm so either they licence
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When would a firm choose to operate on a transnational basis? Under what circumstances would a firm use a localization strategy? When would an international strategy be employed? Support your answers with examples. Firms look to operate on a transnational basis primarily to penetrate into foreign markets and expand their business. After tasting success at home‚ several firms make investments to expand globally in order to attain market share and boost revenues. Transnational companies have coordinating
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