Using this example and any others with which you are familiar‚ assess the potential implications for business of external growth as compared with organic growth. Organic growth is when a firm expands its existing capacity or range of activities by extending its premises or building new factories for example. External growth however is when two or more businesses come together via a merger or a take-over. There are many implications of external growth. One of the main implications is the ignorance
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ECONOMICS Economic Problem * Unlimited wants‚ limited resources Economic Systems * Questions to answer: 1. What to produce? 2. How much to produce? 3. How to produce? 4. For whom to produce? * Criteria to classify economic systems 1. Productive resources owned by private individuals (private sector) or government (public sector) 2. Role of market forces of demand and supply in allocating resources‚ determining prices‚ distributing incomes 3. Role of government in production
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Strat Unit Test Review Chapter One: Strategic Management Process: Mission --> Objectives --> Internal & External Analysis --> Strategic Choice --> Strategic Implementation --> Competitive Advantage Mission: A firms long term purpose. A desire future state: the aspiration of the organization. - Long term Mission Statements:
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expansion outside of Spain for Inditex brands (exhibit 8) would bring problems of; larger amalgamation of dispersed network pictures‚ greater demand and customisation for Zara offerings from consumers. This would further bring the effects of diseconomies of scale; increased transportation costs‚ top heavy Organisation‚ potentially exceeding working capacity‚ increased risk if central distribution centre fails. No standardised market position – Zara’s expansion approach have led them to be positioned
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money by issuing stocks and bonds; their limited liability is attractive to potential owners; their size and broader ownership base help ensure continuity that helps to build a large customer base and gain cost advantages (a preview for economies of scale).
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Chapter 9 1. All firms‚ no matter what type of firm structure they are producing in‚ make their production decisions based on where: marginal revenue equals marginal costs. 2. According to the table below‚ when profits are maximized‚ profits are equal to: $2. 3. Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes their wheat taste better and have fewer calories than all other wheat
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pouring in. The size of his band is beginning to exceed the food capacity of the forest and the band’s camp‚ because of its increasing size‚ is easier to detect. Discipline is becoming harder to enforce. (In other words‚ costs are rising and diseconomies of scale have set in—Robin Hood is caught in a classic profit squeeze! Moreover‚ the culture is being eroded because all the newcomers do not have the same values and beliefs as the original members who had a common bond of opposing the evil Sheriff
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COST ANALYSIS OBJECTIVES INTRODUCTION MEANING DEFINITIONS TYPES OF COSTS MONETARY COSTS REAL COSTS OPPORTUNITY COSTS ECONOMIC COSTS ACCOUNTING COSTS INCREMENTAL COSTS SUNK COSTS FUTURE COSTS PRIVATE‚ EXTERNAL AND SOCIAL COSTS FIXED / SUPPLEMENTARY / OVERHEAD COSTS VARIABLE / PRIME COSTS REPLACEMENT COSTS PRODUCTION COSTS SELLING COSTS CONTROLLABLE COSTS DIRECT COSTS INDIRECT COSTS SHORT RUN COSTS CURVES LONG RUN COSTS CURVES OBJECTIVES To understand the meaning of cost. To discuss different types
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S. Wright Finance Mr. Cambronero “International Trade and the Effects of the current Financial Crisis” What is International Trade? According to Reem Heakal‚ “International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy‚ in which prices‚ or supply and demand‚ affect and are affected by global events”. For example‚ Political change in Asia could result in an increase in the cost of labor‚ thereby increasing the manufacturing
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as a percentage of the industry’s sales * The value of the firm’s capital employed * The number of employees hired by the business 2. Why do businesses seek to grow in size? * To reap the benefits of larger scale production (This is known as economies of scale) * To gain a larger market share in order to gain better market standing and market power. This may allow the business to charge higher prices to its customers yet gain more profit at the same time * As a means of survival
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