A1. Explain how you determined your product design decisions in the simulation The market research provided was very beneficial in determining the product designs that PCGlobal would utilize. Each target group had certain wants and needs that had to be taken into consideration when designing the PC for each group. PCGlobal analyzed those wants and needs to determine a level of importance for each aspect of the design based on the target demographic in order to create the ideal product that would drive revenue. The most important thing was ensuring that the product names created reflected the type computer that the consumer wanted.
The rental price of capital? The real wage? d. Suppose that a technological advance raises the value of the parameter A by 10 percent. What happens to total output (in percent)? The rental price of capital?
It is also possible that managers do not adopt maximising behaviour at all, perhaps “satisficing” in response to shareholder discipline or that the policy of the firm is the result of complex interactions between various stakeholders. An For a firm to profit maximise, it would be the case that it sets output where marginal cost is equal to marginal revenue. If an additional unit of output were to be produced beyond this, it would add more to the firm’s costs of production than its revenue, thus reducing profit. The diagram below shows profit maximising output and the corresponding price, read from the demand curve. It also shows some other possible objectives for the firm.
What were the problems with this corporation from an organizational architecture point of view? Enron allowed people to make decisions that were lower level employees, who did not possess adequate knowledge. The company rewarded high performers with a generous bonus structure, which made the decisions to proceed into a cautious manner non-existent. The organizational architecture did not have a corporate system in place to check the
An example of this could be social security benefits. These motivations help the company recruit top level employees and increase their overall productivity. But this can be a trade-off as these benefits and rewards can be costly. Takeaway 2 - Corporate Culture, Human Resources, and Ethics Zappos is a great example of a company that has created a lively atmosphere for their workers through their casual working environment. But another takeaway is that this type of culture is not compatible with many companies.
MULTIPLE CHOICE QUESTIONS (2 POINTS EACH) 9. For a typical competitive firm, the price in the long run equilibrium will tend to: A. be greater than average cost B. be equal to average cost C. be less than average cost D. intermediate 10. Which of the following is NOT a problem with monopoly? A. The price does not signal true cost.
These two segments are fundamentally different and do not have the same risks. By using a company wide hurdle rate the risks of these two segments are not taken into account. Looking at industry wide equity betas we can see that telecommunications services industries are less risky at an average of 1.04 while telecommunications equipment and computer equipment industries are riskier and have an average beta of 1.36. Investors should ask for a much higher return from the Products and Systems segment than from the Telecommunications segment. To calculate the separate hurdle rates the cost of equity for each segment must be determined first.
CVP analysis allows management to use variable cost to identify future performances within the company. This can also show disadvantages of managers not looking thoroughly through the companies performances. These managers tend to be ones who do not record their records thoroughly. CVP analysis tends to be a beneficial tool to management, but it is limited in the amount of information that can be provided for product operations. This analysis gives a hypothesis of what the question is made of, to give an advantage to management but continues to not be an exact procedure for management.
CanGo has very low profitability ratios, low turnover ratios and a high debt equity ratio. All these demonstrates that it’s in Cango’s best interest to take control of their financial performance, and focus on generating cash for the company, make better use of available resources and ensure that they are able to generate profit. The company should not take more debt and need to focus on how to use their existing resources to generate more cash flow to be able to operate and meet their financial obligations. Under the current operating system debt is increasingly being
Since it is pretty apparent that the company only acquires related businesses that fit the mold of their current distribution system, or at the very least can be changed to fit it, I would argue that Newell is resource-based. Executives at the company seem to think that, despite its distinct divisional structure, Newell is not a holding company. This point can be debated when you consider it empowers each division to run independently while simultaneously keeping a tight rein on each one’s financial output. Yet, due to the highly-related product attributes across the divisions, I tend to agree with the executives. Newell takes this integrative approach one step further than most when acquiring new companies, since it looks to see if it can leverage preexisting relationships with retailers whenever adding a new business.