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Mekhanik [1.2K]
3 years ago
7

3.1. Explain which of the following approaches to strategy formulation is more likely to generate economic profits: (a) evaluati

ng external opportunities and threats and then developing resources and capabilities to exploit these opportunities and neutralize these threats or (b) evaluating internal resources and capabilities and then searching for industries where they can be exploited.
Business
1 answer:
Radda [10]3 years ago
5 0

Answer:

Option B.

Explanation:

Employing internal based resources gives a better competitive edge to an organisation as those resources are already in place. This eliminates extra cost of getting new funding or resources as in option A.

You might be interested in
The AFN equation assumes that the ratios of assets and liabilities to sales remain constant over time. However, this assumption
Vera_Pavlovna [14]

Answer:

The answer is A True

Explanation:

AFN which is "additional funds needed" is a concept used commonly in business looking to expand operations and influence. Since a business that seeks to increase its sales level will require more assets to meet that stated goal, some provision must be made to accommodate the change in assets. AFN is a way of calculating how much of new funds will be needed, so that the firm can realistically look at whatever or not they will be able to generate the additional funds and therefore be able to achieve the higher sales level.

Economies of scale are cost advantage reaped by companies when production becomes efficient. Firms can achieve economies of scale by increasing production and lowering cost. This does not involve calculating of new funds needed for a realistic expansion of the firm.

Lumpy assets are assets that cannot be acquired in small increments but must be obtained in large, discrete units.

Excess Capacity indicates to a situation in which the demand for a company's goods and services is less than its production capacity. This situation can arise in any firm during  the low point in a seasonal industry, where capacity is maintained to match the peak part of the season.

A constant ration can not be meet in this condition of economies of scale, lumpy assets, and excess capacity as these conditions  can not be used in raising funds or additional funds that are needed by the industry in its expansion.

8 0
3 years ago
When Ned’s car breaks down, he asks Insta-Tow, Inc., to tow it to Jerry’s Repair Shop. There is no discussion of a price, and Ne
Illusion [34]

Answer:

The correct answer is b. an implied contract.

Explanation:

The theory of implicit contracts refers to the fact that the relationship between employers and workers is governed, in addition to the "explicit" legal contracts signed between the two, by a multitude of tacit commitments established during the understanding between the two parties. Implied contracts are unwritten agreements and informal rules that companies have with their workers, and that, in many cases, are justified in the commitment to wage stability. In this theory, companies set wages within a broad and long-term strategy or stability of the employment relationship.

7 0
3 years ago
Time, energy, and money are examples of:
KengaRu [80]

Answer:

Flexible resources

Explanation:

Flexible resources are defined as those that can be utilised under different categories of resource groups.

They are able to serve multiple functions.

For example money can be used for different activities like production of goods, training of staff, purchase of raw materials, and so on.

Time can be allocated to different endeavours.

Same applies to energy. It can be focused on pursuing various objectives

8 0
3 years ago
Berkshire Inc. uses a periodic inventory system. At the end of 2015, it missed counting some inventory items, resulting in an in
zlopas [31]

Answer:

Assets understated by $510,000, liabilities understated by $153,000 and shareholders' equity understated by $357,000.

Explanation:

An understatement of closing inventory will have the following effects,

First of all the inventory as an asset is understated by $510,000

Second, this inventory was subject to deduction from the Cost of goods sold as, Cost of goods sold = Opening Inventory + Purchases - Closing Inventory.

Since this amount was not subtracted from the CGS, the gross profit and ultimately the Net profits were understated by $510,000.

This will be added in the net profits.

With an increase in net profits, the tax payable amount also increases. This is calculated as 510,000 * 0.30 = $153,000

So total change in profits is = 510,000 - 153,000 = $357,000

While $153,000 is still payable and is recorded as a tax payable liability.

Thus,

Assets understated by $510,000

Liabilities Understated by $153,000 (tax payable)

Share holders equity understated by $357,000 (part of retained profits)

Hope that helps.

6 0
3 years ago
Global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive
Flura [38]

Answer:

True

Explanation:

Supply Chain Management is the integrated management of material, information and money flow that enables the customer to reach the right product at the right time, at the right place, at the right price, at the lowest possible cost for the entire supply chain. In other words, creating strategies and business models that will increase customer satisfaction by integrating the basic business processes in the chain. A supply chain is a set of relationships and links that enable the movement of products between suppliers, manufacturers, wholesalers, distributors, retailers and ultimately consumers. It covers all successive rings from the procurement stage of goods and services to production and delivery to the final consumer. In terms of business processes, supply chain; sales process, production, stock management, material supply, distribution, procurement, sales forecasting and customer service.

Consequently, the location is the one of the most important factors of supply chain in the profitability terms. If the company is on the perfect location in the meaning of proximity to customers, or other supply channels it would be great asset for the firm or company. That's why it is pretty important for companies in the global markets to make decisions about the location. Of course, this will optimize the performance of supply chain and make consistent with the firm's or company's competitive strategy.

5 0
3 years ago
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