In order to implement a cost-leadership strategy effectively, a <span>functional and mechanistic</span> structure is preferred in a firm. The cost leadership strategy in business was developed by Michael Porter regarding competitive advantage. The ultimate goal is to achieve the lowest cost of manufacturing and operating your product within the industry.
Answer:
The rank will be
1.Project C
2.Project A
3.Project B
Explanation:
The profitability index formula is
(NPV + Initial investment) ÷ Initial Investment
We have to get this index for each project
Project A ($80,000+90,000)÷ $80,000=2. 125
Project B ($120,000+ 110,000)÷ $120,00 =1.916
Project C ($160,000+ 200,000)÷$160,000 =2.25
The higher profitability index is from Project C, then Project A and finally Project B
Answer:
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Explanation:
Answer:
A conglomerate is a business combination merging more than three businesses that make unrelated products.
Explanation:
A conglomerate is a group of companies with different activities. This business concept spread to Europe from the United States after World War II. The benefits were considered to increase the company's long-term profitability by spreading risk to various business areas.
However, conglomeration often led to an increase in administrative costs. Furthermore, the conglomerate's management rarely had the competence to handle a number of companies in different industries. The conglomerates that were listed on the stock exchange were regularly valued lower than the total market value of the subsidiaries, indicating that the stock market did not believe in the very idea of creating such corporate groups. The risk diversification that the conglomerate was aiming for could equally well be achieved by the individual investor in his own equity portfolio. Therefore, since the 1970s, many conglomerates have split up, and most companies have instead focused on creating competitive advantages through their core business.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.