Routine outcomes of having such a long lead time, however, include stockouts of popular items during peak selling periods, and leftover stock of unpopular items which ultimately are sold at below-cost rates. Where the firm could find opportunities is in stimulating demand through an aggressive marketing campaign. While such a campaign would exacerbate the firm’s stockouts of popular items, it would aid in selling overstocked items at still-profitable prices. Another serious consideration for Sport Obermeyer is expanding abroad. Today the company sells products in the United States, Great Britain, and Canada.
According to the case, the soft drink industry has historically been a profitable industry. In my definition, soft drink industry contains concentrate producers. The major competitors within US soft drink industry include Coca-Cola Company, PepsiCo Inc., Cadbury Schweppes and so on. This long-term profitability could be explained with Porter's Five-Force analysis. Threat of Entry Threat of entry is low as barriers to entry are high.
Its key competitors typically supplied on average 2000 to 4000 items while Zara on the other hand was able to supply 11000 in a season. Zara decided upon the supplier’s selection based on its requirements. For the fashion items that had high demand and so were not easy to forecast, Zara used suppliers with closer proximity having lower lead times although the productions costs were high. For items whose sales were forecasted easily, it used suppliers with lower costs of production but longer lead times. The following are the two main HR policies that contributed to the Zara success: 1.
Do you agree that large firms are always better than small firms? Justify your answer. (25 marks) Large firms can experience certain advantages that small firms cannot achieve thus can be argued to be better; however this may not always be true as they may also face disadvantages for example from diseconomies of scale. Furthermore the market is fundamental to determine if large firms are better than small firms, as perfectly competitive and monopoly markets varies the advantages and disadvantages of being a small or large firm. Large firms tend to benefit more due to several factors from economies of scale; this means that the firm can benefit from falling average costs in the long run – however small firms cannot achieve such benefits.
However, chances are that given the scarce use of incentives in Asia in the past and even at present, a more meritocratic company such as Samsung can attract talented people without overpaying them. Production: Samsung achieved a first-mover advantage due to both the scale of its facility and the importance of experience in chip production: - In the mid-80s, it built a large manufacturing facility in record speed, at a time when the market was in a recession. - The production of chips is described as difficult, and as early mover Samsung has acquired an expertise in production that has not been matched by others. Samsung is able to produce multiple product architectures on each production line. This is essential for Samsung to able to produce a
Many consumers, not to mention business scholars, are likely to be unfamiliar with it. Yet, both firms achieved remarkable financial results from Six Sigma. In fact, on some metrics Grace might be considered even more successful than GE. What did they have in common that led to such success? Some Common Misconceptions We should first note what the two companies do not have in common: • They are at opposite ends of the size spectrum • They are not in the same industry • They did not use the same Six Sigma deployment provider The myth that Six Sigma works only for large companies like GE ($130 billion in revenue) has likely persisted because business journals, books, and articles tend to focus on large companies like GE or AlliedSignal, so the successes of small companies, like Grace ($2 billion in revenue), are not visible to the general public.
Externalities cause deadweight loss which can lead to market failure. Businesses can make more money if they can internalize the externalities. Externalities can be internalized if the transaction cost of the business is low. “Transaction costs are the costs of identifying and bringing buyers and sellers together, bargaining and drawing up a contract”2and it is relatively high for department stores like Galeria Kaufhof in comparison to stores like H&M. Similarly, the transaction cost for stores such as H&M is more than that of the jewelry shops but less than the department stores.
Moreover, company is facing a high competition from competitors with their increased distribution channels. So it is recommended for Levi's to implement a new pricing strategy and also to increase number of retail stores. The new pricing strategy would include reducing prices, giving gift coupons and allowing
As outlined by the text, investor reaction is indicative that the acquisition of PacifiCorp would be value adding for both Berkshire as well as Scottish Power. The change in stock price is implicative that $43 billion is put to great use, as oppose to sitting in Cash and Cash equivalent section of Berkshire’s balance sheet. More importantly, because Berkshire already has an Energy Holding Company, PacifiCorp being a low-cost energy provider would enhance the company’s overall reach in terms of market share. Therefore there is the potential and high probability of synergy between MidAmerican Energy and PacifiCorp, resulting in the market perception that more value will be added to Berkshire overall. The text
A wide choice of acid-base indicators is available, varying not only in the colours of the two forms but also in their sensitivity toward acid or base (Encyclopaedia Britannica, 2013). In relation to this practical the Sodium Hydroxide (NaOH) is the strong base which dissolves in water to form an alkaline solution. The concentration of this solution can be determined by titrating it with a standard solution of a strong acid such as Hydrochloric Acid (HCl). The indicator to be used is Methyl Orange. Apparatus: * * Pipette (10cm3) and Filler * Burette (50cm3) * Conical Flask * Funnel * Glass beaker * Stand and Clamp (for burette) * White paper * Chemicals (NaOH, HCl, Methyl Orange for indicator)