Question 1: What are the key differences between these two accounts of Honda’s entry into the US motorcycle market? The Boston Consulting (BCG) Report suggested that Honda entered the US motorcycle market with the plan approach. Advanced planning which was tailor-made for the US market was prepared before entering the country. On the other hand‚ Richard Pascale’s report‚ which consists of an interview with the top management of Honda at that time‚ showed that Honda entered the US market successfully
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PROFIT MAXIMIZATION [See Chap 11] 1 Profit Maximization • A profit-maximizing firm chooses both its inputs and its outputs with the goal of achieving maximum economic profits 2 Model • Firm has inputs (z1‚z2). Prices (r1‚r2). – Price taker on input market. • Firm has output q=f(z1‚z2). Price p. – Price taker in output market. • Firm’s problem: – Choose output q and inputs (z1‚z2) to maximise profits. Where: π = pq - r1z1 – r2z2 3 1 One-Step Solution • Choose (z1
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Profits Katherine Carpenter Liberty University Econ 213 Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources‚ including those owned by the firm. Therefore‚ profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to make
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by private individuals. Usually‚ we have organizations within the economy where one is profit oriented and its main business objective is to make profit from the revenue it tends to make by the end of a certain period‚ therefore‚ nothing from the extra money made will be used to develop the business‚ instead‚ the profit will go to the owner of the business‚ adding to that the owner can be giving some of the profit to its employees as a way of motivation according to Maslow’s hierarchy of needs which
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: [ 4 x 5 = 20 marks ] (ii) Anil and Mukesh are partners sharing profit and losses in the ratio of 3 : 2. Govind is admitted for ¼th share of firm. Thereafter Madan enters for 20 paisa in a rupee. Compute new profit sharing ratios under both the admission of partners. (iii) The following Goodwill Account was opened by the partners of R and S‚ on the admission of H as a new partner into firm Om and Sons. Calculate the share of profit agreed to be
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Capital Structure and Profit Capital Structure Definition A unite of a company’s long-term debt‚ specific short-term debt‚ common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable‚ whereas equity is classified as common stock‚ preferred stock or retained earnings. Also‚ Short-term debt such as working capital requirements is considered
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Profit Maximization model helps to predict the price-output behavior of a firm under changing market conditions like tax rates‚ wages and salaries‚ bonus‚ the degree of availability of resources‚ technology‚ fashions‚ tastes and preferences of consumers etc. It is a very simple and unambiguous model. It is the single most ideal model that can explain the normal behavior of a firm. It is often argued that no other alternative hypothesis can explain and predict the behavior of business firms better
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1. List down the characters and analyze their professional personalities/attitudes in this movie. Jared Cohen Suggested that they should sell all the products Not responsible Should consider the long term effect of every action that they take John Tuld Decided to sell all the products to the same buyers and any new buyers He argues that the action made is for the sake of the company Agency problem - conflict of interest Ruin the company reputation and loss people trust Sam Rogers Facing a dilemma
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Types of volcanism associated with plate margins There are two types of plate margin. When there is a boundary between two diverging tectonic plates‚ such as between the North American and Eurasian plates‚ it is known as a constructive plate margin. This is because it recognises the importance of magma rising up from the mantle to create new crustal rock. The boundary between two converging plates is known as a destructive plate margin‚ as it is responsible for more violent seismic activity‚ volcanoes
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In order for a company to be able to reach its full potential financial management must be in place. This management needs to be aware of at least the basics of financial plans which are revenue‚ cost and profit. These three things can make or break a company. Each of these things must be understood and considered before plans can be laid to create or better a company. Revenue is the amount a company receives (Marginal Revenue‚ 2009). If a company is in the business of sales‚ revenue is the
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