Opportunity cost

Opportunities and Threats of the External Environment Microsoft has many opportunities and threats in the external environments that they need to keep abreast of. As competition continues to expand product and service lines, Microsoft will need to keep abreast of any these changes. By continually monitoring external competition as well as looking for opportunities for product and service improvement, Microsoft can continue to remain a leader in the information technology field. A threat in…

organization to realize their strategic intent – to produce high quality products. Another program focused on increasing quality of “small and medium-sized bulldozers” was called “Project A” (Bartlett, 1988, p. 5). This project pursued quality at any cost (Bartlett, 1988, p. 5). Kawai junior understood that the sustainability of the organization was based building the core competencies needed to produce a competitive grade of high quality products (Bartlett, 1988, p. 5). “Sustainable,…

information about costs for planning and control decisions. 2. Direct materials are not usually easily traced to a product. 3. A variable cost changes in proportion to changes in the volume in activity. 4. 34. Product costs are expenditures necessary and integral to finished products. 5. Cost concepts such as variable, fixed, mixed, direct and indirect apply only to manufacturers and…

Reduce Cost / Economies of Scale/ Increase Profitability Like many other international operations, IKEA too seek to take advantage of the tangible opportunities to reduce their costs. Figure 2 below shows the three pillars of IKEA’s concept which represents low cost, good design and functionality. It is inevitable that the furniture business was not an easy business to be expanded globally and primary reason would be the transportation of the goods is expensive. IKEA had been the pioneer in…

To: Staken Farm’s Limited From: Kim Gubbels Subject: Taking on grading tasks Date: December 1989 Recommendation: Take on Grading Tasks Staken Farms Limited was taken over by Robert and David Kennedy. Within the company, an egg grader was purchased, yet it has been idling for years and therefore was consistently losing value. In order for Staken Farms to be the most successful, it is critical for the business to prevent the grader from idling any longer. I recommend that Staken Farm’s Limited put…

called as Format wars because standardization can lead to companies to creating similar products to compete within the same market place. 2. Once standardization occurs, how does the industry benefit? Standardization can lead to lower transaction costs and improve savings structure for individual businesses. It could increase the competition within…

There has always been a relationship between the factors of economics and the world of business. Economics is a crucial study to know at first hand when the interest of running a business sparks, but many have asked, what is the relationship between the two and why is it so important? The importance of economics in the business world is a necessity because without knowing the odds of making decisions, the stakes are extremely high and after spending my time studying the factors of microeconomics…

us in MESO analysis of the market. It determines competitive intensity among the market. Competitive intensity depends on certain factors such as lots of/less competition, industry growth potential, product differentiation, exit barriers, storage cost, competitive strategies etc. Below are the five forces which are determined by Porter. In the centre, he has mentioned Rivalry among existing competitors, this also includes your own business. Rivalry is surrounded by 4 forces. Each…

Strength: 1. A New Unit – Starting from the scratch, will enable us to install the latest and the most upgraded machines, though it is a labour intensive project during the beginning period. Installing the latest machinery will drive the per-unit cost and other overhead expenses down to the minimum and will also ensure the quality as per the International Standards. 2. Labour Intensive – The firm will be labour intensive during its early stage. The requirement of skilled worker will be…

1.2 Maintenance Policies This is to create a reference for development into maintenance strategies, and also the challenges that come with its integration with FMECA elements. The main purpose of maintenance in an industrial perspective is to reduce the business risks. In general, operation and maintenance is synonymous with high level of availability, reliability and assets operability linking directly with production capacity, productivity and business profit. [7] Today, the…