industry growth rate‚ concentration and balance of competitors‚ degree of differentiation and switching costs‚ scale/learning economies (if your working at maximum productivity you can bring costs down) and the ratio of fixed to variable costs‚ and excess capacity and exit barriers. 2. Threat of new entrants New entrants can force firms to set prices to keep industry profits low. The threat of new entrants can be eased by economies of scale‚ the first mover advantage‚ greater access to channels of
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Imagine‚ for a moment‚ that you are in a lifeboat. The lifeboat has a limited capacity‚ say 60 people‚ and there are 50 people in it now. You are not aware of the capacity of the lifeboat. These 50 people in the boat represent rich Americans‚ or those with the means to donate to overseas charities. Outside of the boat swimming in the water there are some 100 people hoping
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APL’s offer • Option 2: Become an independent contract manufacturer. • Option 3: Rebuild the “MKG” brand. DECISION: KCPL should work on reviving its brand. ACTION PLAN: KCPL has to work on technology upgradation‚ increasing capacity utilization and managing a efficient workforce. It also has to improve its brand image and target new profitable markets. CONTINGENCY PLAN: As a contingency plan‚ KCPL can accept the offer of APL. 2. MAIN REPORT 1. SITUATIONAL ANALYSIS
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B1. Analyze Simulation Results A budget is a financial plan which is expressed in real numbers‚ typically in monetary units‚ which set the expectations for the expenses the company will incur to reach its goals‚ and management objectives. A good budget uses forecasts to determine what amounts should be used to reach desired efficiency and profitability. Budgets can be used to determine whether a not a process is working effectively‚ whether or not changes in operations need to be made in order
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or Mass Case Study A. Executive Summary Neptune Gourmet Seafood‚ North America’s third-largest seafood producer’s inventory had shot up to 60 days’ supply – twice the normal level and three times what it had been a year ago. The problem with excess inventory can cause numerous deficiencies such as tight up of cash and loss of margins. During an executive meeting of Neptune’s top management‚ each executive has a different opinion in presenting a strategic solution. My recommendation is to offer
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ADVANTAGES OF VERTICAL INTEGRATION It leads to reduction of transportation costs as the common ownership results in closer geographic proximity. The transaction costs can be controlled if a firm acquires the other firms in the vertical chain‚ then one division of the same company will transfer goods to other divisions. So‚ transaction costs in form of transport‚ cost of negotiation‚ cost of control etc. will be eliminated. The overall average cost of the firm will decrease because if the divisions
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Guide Chapter 16 What are the 3 views of the supply curve (describe & illustrate) Keynesian view: AD is horizontal‚ a shift to the right in recession increases Q but not P. inflation becomes problem only after AD shifts past Q*‚ the production capacity MONETARIST VIEW: changes in money supply affect prices‚ not output‚ AD shift to right increases inflation‚ AS is a long-run concept and is vertical CONSENSUS VIEW: economists see an AS curve with an upward slope that increases near full employment
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1. Why might efficiency increase when a company is privatized‚ that is‚ converted from government ownership to private ownership? Could efficiency decrease? When a company is privatized efficiency can increase. When the government owns the factors of production there is little opportunity or incentive to design better products or pursue new technology. Efficiency is simply getting the most from what you’ve got. … There is no guarantee that efficiency will always increase. 2. Do we need
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entity as a result of past transactions or events. Paragraph 26 then describes the trio of characteristics that qualify an item as an asset: an asset has three essential characteristics: (a) it embodies a probable future benefit that involves a capacity‚ singly or in combination with other assets‚ to contribute directly or indirectly to future net cash inflows‚ (b) a particular entity can obtain the benefit and control others’ access to it‚ and (c) the transaction or other event giving rise to the
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services needed to create the firm’s product • Making is where the major product is produced or the service provided • Delivering is also referred to as logistics processes • Returning involves processes for receiving worn-out‚ defective‚ and excess products back from customers and support for customers who have problems with delivered products Differences between services and goods production (five differences) • The first is that a service is an intangible process that cannot be weighed or
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