Company G has prided itself on cultivating relationships with it's suppliers built on honesty, confidence, and allegiance in order to facilitate profits for both parties. However, as popularity may grow for the product so too may the market and suppliers might consider increasing costs, in which case a fixed contract would be discussed. Threat from Substitutes – If the Little Wonder does prosper their may be threats from substitutes from larger companies that are able to produce a similar product on an increased scale thereby reducing it's price and making it difficult for Company G to compete. SWOT Analysis A SWOT analysis has been done for Company G and the outcome is clearly positive. The details of that evaluation: STRENGTHS Dedication from management, employees, and suppliers 1.
With the ABC Method, the costs are factored by the different cost drivers, such as machinery, staff, number of parts needed, amount of products made, as well as direct material costs and direct labor hours. This information will definitely help when it is time to make departmental budgets. This provides the departments that need more labor and/or materials with the proper budget that they need to run smoothly. The ABC Method will in turn save the company a lot of money since the money in use is being spent in a more constructive
The difference between the first and the revised traditional estimates comes from using a different cost driver for each method. The ABC method can use multiple cost drivers since different costs can be driven by different things. 3. By seeing the differences in each of the methods above, the company’s management would have to buy in on which method they will move forward with. I would recommend they use the ABC method.
“Noise.” Explain the concept of noise. Please respond to the following: How does multitasking deal with the concept of noise? Describe a scenario where multitasking results in negative efficiency and another scenario where multitasking results in positive efficiency. Of all the factors that play a role in the process, which is the most important and why? From a communication’s point of view, noise in the business world can have very costly and detrimental effects as miscommunication can result due to difficulties in listening.
Elaine Ust ACC 202 Module 4 Case Allocating fixed costs Activity based management and activity based costing is different from a more traditional costing method because it uses multiple cost drivers and multiple overhead pools to allocate or apply overhead to products and cost objects. The main characteristics of ABC and ABM is that the charge the division or products for use of overhead resources consumed by charging for activities that are thought to drive costs. The goal is to create awareness that activities drain resources and have the products that use the resources have the costs mapped to their product or division. In this way the divisions and products that use the most resources are charged for those resources. Traditional allocations with one resources to spread overhead often charges products an "average rate" and so fussy and difficult products get a break (charged less than they consume or "under costed") and easy low-hassle products look worse than they are (charged more then they consumer or "over costed").
Low customer satisfaction is another internal weakness that is crucial to the success of CanGo. Another internal weakness includes severe communication issues within CanGo’s management and employees. External threats such as competition, plays a big role in the future success of CanGo. Your organizations internal organizational strengths such as online growth, and cost advantage offers great potential if properly utilized. Another external threat includes economic slowdown.
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.
Advantages: An increase on the job market because positions have to be created for enforcers of this act. Another advantage of this act is the security and accountability. Disadvantages: the disadvantages of the SOX would be that it is costly and time-consuming. The SOX also has opportunity for error if not done correctly. The way the SOX impacts the event industry is how industry professionals keep up with documentation of deals and agreements.it also affected us financially because of budgets cuts, correlating with the act.
• A differentiator gains a competitive advantage because it has the ability to satisfy customers’ needs in a way that its competitors cannot, which allows it to charge a premium price for its product. • Premium prices → increased revenue → superior profitability • A differentiator invests its resources to gain a competitive advantage from superior innovation, excellent quality, and responsiveness to customer needs • A product’s appeal to customers’ psychological desires is a source of differentiation. ▫ Example? 13 Differentiation • Generally, a differentiator chooses to divide its market into many segments and offer different products in each segment • A differentiated company concentrates on developing distinctive competencies in the functions that provide competitive advantage ▫ These are still expensive! • A differentiator must control its cost structure to ensure the price of its products does not exceed the price customers are willing to pay for them • When differentiation stems from the design or physical features of the product, differentiators are at great risk of being imitated ▫ Example?
The quality is not compromised with the cost factor and thus becomes the strength with increased profits. Second, it has its own established brand name which serves as a major strength as compared to its competitors. These strengths can be considered as a distinctive strength because both the low cost and brand name positioning serves a competitive advantage which in turn leads to more profitability and major share in achieving the industry trusts as well as confidence. Weaknesses: First, Customer Service is the parameter for which DeVery needs to put hard woks for it. Second, the quality of the degree should be improved in order to stand apart from its competitors.