Answer:
3. Threat of flooding the industry with excellent products
Explanation:
Here are Porter's five primary forces:
- Competition between organizations in the same industry.
This create a sense of rivalry that force each organizations to keep improving their products and services.
This is what represented by option 1.
- Potential of new entrants into the industry.
New entrants into the industry will take a portion of market share. This will benefit the customers because it often force competitors to lower the price of their product
This is what represented by option 2
- Power of suppliers.
Suppliers have the ability to connect the producers and the customers. This give them enough leverage to influence the price imposed by the company.
This is what represented by option 4
- threat of substitute products.
Just like new entrants, substituted products could also take away the market share and reduce the profit that can be taken by companies. This is what represented by option 5.
- Power of customers
Customers could create a demand based on their preference. Companies will have to tried their best to fulfill this demand if they wanted to survive.
This is not mentioned in the options above.
Answer: Commercialization
Explanation: The act in this case study illustrates commercialization which can be defined as the process of making new product available into the market with the motive of having strong financial gains. In this case study general foods was more aware than proctor and gamble thus they initiated the commercialization stage before them and developed the product for market before P and G.
Answer:
A) The price of a donut is $2.00 in 2012.B) Rina's wage is $14.00 per hour in 2012
Explanation:
Nominal value means face value or stated value.
Real value means nominal value adjusted for inflation. Real value of money can refer to the purchasing power of money. Rina's wage is 2 paperback novels per hour in 2012 is an example of real value.
I hope my answer helps you
Answer:
$2,033
Explanation:
The computation of the terminal value at the end of the year 2 is shown below:
= {Free cash flow of the firm × (1 + growth rate) × (1 + growth rate) + (1+ growth rate)} ÷ (WACC - growth rate)
= {($80 million × (1 + 0.10) × (1 + 0.10) × (1 + 0.05)} ÷ (10% - 5)
= $101.64 ÷ 0.05
= $2,033
We simply applied the above formula so that the Terminal value could arrive
Answer:
the payback period of the project is 3.57 years
Explanation:
The computation of the payback period is shown below;
Payback period:
= Initial investment ÷Cash inflows
= $100,000 ÷ $28,000
= 3.57 years
We simply divided the initial investment by the cash inflows so that the project payback period could come
Hence, the payback period of the project is 3.57 years
