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podryga [215]
3 years ago
10

explain how mtumi can apply concentric, horizontal and conglomerate diversification. give examples to support your answer

Business
1 answer:
mel-nik [20]3 years ago
3 0
A concentric diversification strategy allows a firm to produce similar products to an already established business. Let us say that a computer company, producing computers using towers, now starts to produce laptops.
Horizontal diversification allow a firm to start exploring other zones in terms of product manufacturing. If a company that used to produce television, now starts producing refrigerators, dryers etc. it's using horizontal diversification.
As for the conglomerate diversification strategies, this is where companies will look to enter a previously untapped market. So they want to move to a new industry.
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RTP Corp. is developing a new computer processor to compete against Intel's successful product
Alenkinab [10]

Answer: Target Costing

Explanation:

Target Costing is a method of costing on a product done while it's still being produced to determine the best price at which the product can be sold that would be able to compete with price of other similar products in the market and still make profit for the company.

RTP Corp needs to apply target costing for it's new computer processor in order for it to be profitable and beat the price of other processors in the market.

6 0
3 years ago
At a potluck, everyone brings his or her favorite dish to share. gavin decides to avoid the foods he has never heard of before a
Kay [80]
I<span>n this example, Gavin eating food he prepared himself suggests that he is most influenced by Familiarity.  It means </span><span>a good knowledge of something, in this case, the food that Gavin brought to the party. </span>
3 0
3 years ago
A stock has an expected return of 11 percent, its beta is 1.20, and the risk-free rate is 4.4 percent. What must the expected re
Drupady [299]

Answer:

Expected market return = 9.8%

Explanation:

The expected return on the market can be worked out using the Capital Asset Pricing Model.

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>

Under CAPM, Ke= Rf + β(Rm-Rf)

Rf-risk-free rate (treasury bill rate)- 4.4%

β= Beta - 1.20

Rm= Return on market.- ?

Applying this model, we have

11%= 4.4%+ (R-4.4%)×1.20

0.11-0.044= 1.20×(R-0.04)

0.07 = 1.20R-0.048

Collect like terms

0.07+0.048 = 1.2R

Divide both sides by 1.20

R= (0.07+0.048)/1.20

R=9.83%

Expected market return = 9.8%

3 0
3 years ago
What is a market that runs most efficiently when one large firm supplies all of the output referred to as?
stealth61 [152]

Answer:

a natural monopoly

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller (one seller) who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.

A monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.

On a related note, a natural monopoly is a market that runs most efficiently when all of the output is supplied by one large business firm. Thus, a business firm is considered to be a natural monopoly if it's capable of producing the total output of the market at a lower cost than two or more business firms could.

Some examples of natural monopoly are the United States Postal Service, electricity grid, water supply, gas network, sewer services, energy distributors, railway service, etc.

7 0
2 years ago
Suppose that the BMW plant in Spartanburg, South Carolina, USA, produces $10 million worth of vehicles in a given year. Of this
ELEN [110]

Answer:

The answer is B. contributes to U.S. GDP, but not U.S. GNP

Explanation:

Gross Domestic Product (GDP) is the market value of all final goods and services produced within the economy of a country within a period of time.

Gross National Product(GNP) is the market value of all final goods and services produced by a citizen of a country irrespective of whether they are in the country or outside the country within a period of time.

The BMW plant in Spartanburg which produces $10million worth of vehicles is in USA but the company in owned by Germans. Since it is produced within the economy of USA, it will count for USA's GDP but it won't count for USA's GNP because it is not owned by USA citizen rather, it will count for Germany's GNP because it is owned by Germans.

3 0
3 years ago
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