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2 years ago

What is the relationship between a firm's industry environment and the firm's earning potential?

1 answer:

3 0

An organization is more likely to generate above-average returns the more it can positively impact the environment of its industry.

The general rules of competition that affect all companies that offer comparable goods and services. Industry environment is a concept that Harvard professor Michel E. Porter advanced into the forefront of strategic thinking and company planning. The core of his work, which outlines the five factors that affect industry competition, first appeared in the Harvard Business Review. Strategic managers can link distant issues to their influence on a firm's operating environment with the use of his well-defined analytical framework.

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Lead time for one of your fastest-moving products is 24 days. Demand during this period averages 110 units per day. a) What wo

denis23 [38]

Answer:

a.) reorder point = 2,640 units

b.) reorder point = 5,280 units (reorder point doubles)

c.) reorder point = 1,320 units (reorder point drops in half)

Explanation:

Reorder point is the inventory level (point) at which action is taken (order placed) to replenish the stocked item. It is calculated as follows:

Reorder point = (Lead time × average daily sales) + safety stock

Lead time = 24 days

average daily sales = 110 units

safety stock = 0 (not given)

a.) reorder point = (Lead time × average daily sales) + safety stock

reorder point = (24 × 110) + 0 = 2,640 units

b.) if demand during lead time doubles:

lead time = 24 days

average daily sales = (110 × 2) = 220

∴ reorder point = 220 × 24 = 5,280 units

Therefore the reorder point doubles

c.) if demand during lead time drops in half:

lead time = 24 days

average daily demand = (110 ÷ 2) = 55 units

∴ reorder point = 24 × 55 = 1,320 units

Therefore the reorder point drops in half.

8 0

3 years ago

Joseph exchanged land (tax basis of $34,000), that he had held for 4 years as an investment, for similar land valued at $42,000

brilliants [131]

Joseph should report a long-term capital gain of $8,000. The fact that Adrian assumed the mortgage does not affect Joseph's tax basis. The only relevant facts here are the fact that the land acquired in the exchange has a value of $42,000, and the tax basis of the parcel exchanged is $34,000. $42,000 - $34,000 = $8,000.

6 0

3 years ago

The U.S. government bought 112,000 acres of land in southeastern Colorado in 1968 for $17,500,000. The cost of using this land t

sweet-ann [11.9K]

Answer: c. Is equal to the market value of the land

Explanation:

When deciding the cost of using an asset such as land for something, the best cost to use is the opportunity cost of the land. What would the US Government be doing with the land if they were not turning it for use for the black-tailed prairie doga.

As there are no other alternatives, this cost will therefore be the market value of the land because this is the amount that the Government could get for the land if they sold it instead of using it for the black-tailed prairie doga.

6 0

3 years ago

Which factor endowment would be classified as a basic factor by Michael Porter?

bija089 [108]

Answer:

The correct answer is letter "C": natural resources.

Explanation:

Factor endowment refers to the factors of production -land, labor, capital, and entrepreneurship- a nation has available for manufacturing. Countries with more factors of production available tend to be richer than those that do not. Possessing more factor endowments available can also play a key role for countries to establish a comparative advantage compared to other nations.

Therefore, American economist Michael E. Porter (born in 1947) is likely to consider natural resources a basic factor endowment while skilled labor force, for instance, would be considered as an advanced factor of production.

5 0

4 years ago

You are a supply chain manager at a UK firm. In 2010, a volcano broke out in Iceland, disrupting air travel across Europe. On th

grandymaker [24]

Answer:

Explanation below.

Explanation:

It should be understood that as a chain supply manager, your job is to continue to make supply available no matter what may.

At this instance, what happened that cut you off from your reliable Asian suppliers was not your fault at all, and the best thing is to start patronizing the local suppler until the predicament is resolved.

What is needed to be done, is to continually be in touch with the Asian suppliers, and keep assuring them of patronizing them again immediately the coast is clear.

5 0

3 years ago