Answer: Radial Autos should pursue Backward Integration.
Explanation: Backward integration is the process in which a company purchases or internally produces segments of its own supply chain. Simply put, it is when a company acquires and controls certain inputs that could be utilized in the process of manufacturing its products or services.
This is a competitive strategy, because it lowers the cost of production and this will reflect in the price of the final product.
This is the strategy that Radial Autos should pursue in order to lower cost and reduce risk in interruption of the supply component, because in adopting this strategy, they will have total control over the inputs they use in production.
Answer:
contingency.
Explanation:
Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called contingency plans.
A contingency plan can be defined as a set of alternative plans that are designed and developed by an organization for continuous operation of the business in case of an emergency or when there is a failure in the primary (core) plan.
Answer:
Therefore the company should sell material R for $3.91 per kilogram.
Explanation:
Product S88Y:
Current cost (2 kg × $7.60)
=$15.20
Thus If material R were to be used, that means 4 kilograms would be needed.
Hence It currently costs $15.20 for Product S88Y to maintain this same cost.
Therefore material R would be:
[($15.20 ÷ 4 kg) − $0.77]
=3.8kg-$0.77
=$3.03 per kg
Therefore the company should go ahead and sell material R for $3.91 per kilogram.
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B. Determine savings or debt :)