Answer:
When the industry is growing rapidly and the target industry is comprised of several relatively large and well-established firms.
Explanation:
Diversification is a form of growth strategy. Growth strategies involve a significant increase in performance objectives (usually sales or market share) beyond past levels of performance. Many organizations pursue one or more types of growth strategies. One of the primary reasons is the view held by many investors and executives that "bigger is better." Growth in sales is often used as a measure of performance. Even if profits remain stable or decline, an increase in sales satisfies many people. The assumption is often made that if sales increase, profits will eventually follow. Diversifying is therefore appealing when the target company has large sales factor and well established firms
Nominal GDP and Real GDP are described below
Explanation:
The nominal value of a good is its value in terms of money. The real value is its value in terms of some other good, service, or bundle of goods.
Examples:
Nominal: That CD costs $18. Japan’s science and technology spending is about 3 trillion yen per year.
Real: A year of college costs about the value of a Toyota Camry. Those tickets to see Van Halen cost me three weeks’ worth of food!
2.Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation. Real GDP is nominal GDP, adjusted for inflation to reflect changes in real output. Trends in the GDP deflator are similar to changes in the Consumer Price Index, which is a different way of measuring inflation.
3.. Therefore, nominal GDP will include all of the changes in market prices that have occurred during the current year due to inflation or deflation. ... In order to abstract from changes in the overall price level, another measure of GDP called real GDP is often used.
4.The main difference between nominal GDP and real GDP is the adjustment for inflation. Since nominal GDP is calculated using current prices it does not require any adjustments for inflation. This makes comparisons from quarter to quarter and year to year much simpler to calculate and analyze.
5.Real Gross Domestic Product or real GDP is a measure of the value of economic output like inflation or deflation of prices . Nominal GDP on the other hand is a figure which has not been adjusted for any inflation.
Answer:
6 cards
Explanation:
N = DT * (1+X) / C
Number of kanbans = [Demand during lead time + Safety stock] / Size of a bin
Number of kanbans = 1000 * 1 * (1 + 0.2) / 200
Number of kanbans = 1000*1*1.2 / 200
Number of kanbans = 6
So therefore, 6 cards should be used to govern this production.
Answer:
1. Defencse Dynamics has to sell 325,203 units units to break even on this project.
2. Assuming that the firm can sell 200,000 units, Price it must set to break even is $60.75
Explanation:
The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:
Break-even point in units = Fixed cost/(Selling price per unit-Variable cost per unit) = $10,000,000/(
$41.50 - $10.75) = 325,203 units
The firm can sell 200,000 units.
Price it must set to break even = (Fixed cost/Break-even point in units) + Variable cost per unit = ($10,000,000/200,000) + $10.75 = $60.75
Answer: Replace labor with tech, merge or acquire other companies, reduce costs, more to more economical locations.
Explanation: