Answer:
B) underestimated the competition.
Explanation:
Maya is trying to pursue a dream of having her own bakery in a vibrant seaside resort town and thought that by using her grandmother's recipes, her business would be a success. But in order for a business to be successful, it takes more than just a great product (or great cookies, muffins, etc.).
The first thing you need to do is analyze the external environment and what other products are offered by your competition. That way you will be able to determine the opportunities or threats to you new venture. E.g. since the town hosts several upscale and expensive resorts, the clients are wealthy and that market attracts good chefs. I'm not sure if they hand out Michelin stars to bakeries, but if you have very good products offered by your competition, then you must work twice as hard.
Answers in the completed spreadsheet, as well as the formuals I used.
Hope this helps!
Question:
A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is true?
A. The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs.
B. The manufacturer has enhanced utilisation by allowing depreciation and other fixed costs to be spread over a larger unit volume.
C. The manufacturer has sacrificed quality by using a lower-cost input.
D. The manufacturer has efficiently capitalised on the experience and learning-curve effects within the company.
E. The manufacturer has effectively reduced its operating costs by outsourcing its activities.
Answer:
A. the Manufacturer has effectively used vertical integration to increase it's bargaining position and reduce transaction costs.
Explanation:
Vertical integration is a business strategy whereby a business acquires ownership or controls its suppliers, distributors, or retail locations to control its value or supply chain.
It may also be said that vertical integration has to do with the purchase of a part of all of the production or sales process that was previously outsourced, to have it done in-house.
An example of companies who have done this are:
1. Apple
2. Netflix
3. Comcast (Which acquired NBC)
Businesses can integrate by
- purchasing their suppliers to reduce the costs of manufacturing or
- controlling the distribution process that is, owning and controlling the warehousing and delivery of their products etc.
Answer: business plan
Explanation:
Stock dividend, is a method used to distribute wealth to its shareholders by a company.
A stock certificate is a legal document which implies that the owner has some number of stocks or shares in a corporation.
Business loan agreement is simply an understanding that takes place between a business and a lender which contains the promises made by both parties regarding giving the money by the lender and the repayment plan by the borrower.
A business plan is a document that simply describes a business and, its products or services, its financing, leadership and staffing, its operations model, etc.
Answer:
Intrinsic Rewards
Explanation:
Lois is working in a company where she learns the new styles of artwork and she is content with the growth in the company. This situation is best describes as the Intrinsic rewards, which means those rewards come from the employee. An employee who us intrinsically motivated is working for his or her own satisfaction. And it might value the challenging work the person perceives to be meaningful for the company.
