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dezoksy [38]
3 years ago
12

Think of a firm that has attained a differentiation focus or cost focus strategy. Are its advantages sustainable? Why? Why not?

(Hint: Consider its position vis-à-vis Porter's five forces.)
Business
1 answer:
quester [9]3 years ago
7 0

Answer:

Yes they are sustainable

Explanation:

The strategies mentioned in the question were laid out my Michael Porter and therefore, we can look analyse his model to understand whether these strategies are sustainable or not.

Porter has categorized strategies into 3 broad categories: Cost Leadership, Differentiation, and Focus strategies (all three are known as "Generic Strategies). Focus strategy is branched out into two sub-segments known as Cost Focus and Differentiation Focus.

Now, the question has already clarified that the strategies in question are both focus strategies. So lets understand what each entails.

Differentiation Focus: A strategy in which the company aims to gain market leadership in a focused market (a specific market) through strategic differentiaion. This strategic differentiaion involves offering a specialized service or a unique product in a niche market. Cost focus strategy is similar in the sense is that that the aim is to offer highly low cost products/services to a niche market. Because of the focus on these niche markets, company's develop a strong understansing of the consumer thereby developing strong brand loyalty with that particular customer base. The key ingredient, again, is that the competitive advantage is being harnessed by focusing just on a particular niche market. Another key component is that the companies using this strategy rely on the consumers in the target market having different needs, tastes, and requirements than consumers in other segments in the industry.

Now, these strategies by desig were put forth my Porter has being sustainable. Hence the term "generic strategies" in that they can be broadly used to create and sustain performance. The focus strategies as defined above are sustainable since they harness the power of having priority knowledge of their target market to provide appropriate services and products. The high brand loyalty and knowledge of consumers give them an edge over competitors (competitive rivalry). Supplier power depends on the nature of products being offered therefore it cant be taken into consideration. Buyer power can be managed since you are prodiving unique service offerings to unique customers. Threat of substitution depends on the product and service offering. Threat of new entry by larger player exists, but due to the focus that the company had in the target market, barriers to entry (long strong brand loyalty) can be developed.

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A state government reported a $9,000 increase in net position in the motor pool internal service fund, a $12,000 increase in net
Anastaziya [24]

Answer: $12,000

Explanation:

Only the $12,000 will be reported in Statement of Activities ( the financial statement used to report revenues and expenses for governmental and business-type activities) as a change in net position for business-type activities.

Why?

The Water Entreprise Fund is the only listed fund type listed that would fall under BUSINESS TYPE because it is an ENTREPRISE Fund. The Motor Pool Internal Service falls under GOVERNMENT ACTIVITIES and the Pension Find is only displayed in the Fund Financial Statements.

Because the Water Entreprise Fund is the only fund here concerned with BUSINESS TYPE activities, it's rise by $12,000 is what will be reported as the Net Change.

8 0
3 years ago
Total fixed costs for Taylor Incorporated are​ $260,000. Total​ costs, including both fixed and​ variable, are​ $500,000 if​ 156
kobusy [5.1K]

Answer:

The variable cost per unit is $1.54

Explanation:

Variable costs are those cost which vary with the change in production of units means higher the production higher cost and lower production will result in lower cost e.g Material cost, labor cost etc.

On the other hand fixed cost the cost which does not vary with the production of units. It is fixed no matter what is the level of production.

According to given data:

Total Cost = $500,000

Fixed Cost = $260,000

Variable cost = Total cost - fixed cost

Variable cost = $500,000  $260,000

Variable cost = $240,000

Number of units = 156,000

Variable cost per unit = $240,000 / 156,000 = $1.54 per unit

6 0
3 years ago
A _______ is a prediction stated in a way that permits it to be tested.
DochEvi [55]
<span>A "hypothesis" is a prediction stated in a way that permits it to be tested.

Hypothesis refers to a particular statement of prediction. It depicts in concrete (instead of theoretical) terms what you expect will occur in your investigation. Not all examinations have hypotheses. Some of the time an investigation is intended to be exploratory. There is no formal hypothesis, and maybe the reason for the investigation is to investigate some territory all the more completely keeping in mind the end goal to build up some particular theory or forecast that can be tried in future research. A solitary report may have one or numerous hypotheses.
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5 0
3 years ago
What is a characteristic of the leader substitutes model?
sladkih [1.3K]

It says that managers don't have to play a leading role under certain conditions.

<u>Explanation: </u>

Leadership Substitute:

A characteristic of a delegate or a circumstance or condition in which leadership works in place of a leader, inappropriate in leadership. All Leaders of an organization can sometimes work very well without a director controlling the management.

The most important aspects of a company are effective leadership, many experts agree. But sometimes it's not necessary to have leadership.  

For example, Raj is a father and that he wants his daughter to do her work. Raj knows he can usually make his daughter do things if he gives her an exchange piece of candy.

However, it's the day after Halloween in this scenario but she already has chocolates. In this respect, Raj's power of leadership has been eliminated, since the normally used award is not effective.

3 0
3 years ago
Kohl's Corporation decided to discontinue its Kohl's credit card operations. What factors would this department store company ha
mart [117]

Answer:

The most likely factor that this department store company would have considered in discontinuing its credit card operations is the issue of bad debt.

Bad debt may likely have prevented them from making the required profit to cater for the needs of the company such as payment of salaries and purchase of goods which if not treated may lead to the collapse of the company.

3 0
3 years ago
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