for the company to choose is the second project. After using the replacement chain because the projects do not have the same life the NPV gave us a clear conclusion. Even though this problem is cost based and not based on revenue you would still take the NPV project that has the lowest NPV or associated cost. Project 2 actually had positive free cash flow for the years that were not a reinvestment or replacement chain year. 2) After analysis of the firm and manufacturing the container I have
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Macy’s Cost Structure Macy Inc. (M) has a cost structure that can best be viewed using SWOT analysis, which is a way of evaluating the strengths, weaknesses, opportunities, and threats to the corporation. Macy’s strengths include customer loyalty, a recognizable store name, use of technology, a substantial supply chain, its comprehensive size, and the locations of its stores. In total, these strengths enable Macy Inc. to provide a unique service that offers a characteristic their competitors do
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proper behavior is important and impacts productivity, profit increases, and employee attitude regarding the quality of work life. Supervisory cooperation is necessary to promote high-performance work practices, maintain diversity, equal employment opportunities and fair treatment for employees. Management Behavior Managers must utilize available resources to enhance productivity, quality of work life, and profit by enabling employees to utilize their talents and maximize their usefulness. Managers
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Main Points, Issues and Ideas of the article In today’s world, the competition is fierce and shareholders demand high return on investment. Thus, there is a need to maximize profitability. Increasing revenues while minimizing costs are ways to boost profits. The article “Managing Customer Value” suggests that customers might be the key to improve profits. Customers are assets to firms; they generate revenues. However, some assets generate more revenues than other. In order to foster maximum
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make decisions that are in the overall organization's best interests (i.e., goal congruence). Minimize opportunity costs. 2) The amounts charged for goods and services exchanged between two divisions are known as: a. opportunity costs. transfer prices. standard variable costs. residual prices. target prices. 3) Which of the following is an appropriate base to distribute the cost of building depreciation to responsibility centers? a. Number of employees in the responsibility centers
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as a decision maker of a renovation of the houses. Hence, Home Depot has to modify their strategy to customer responsiveness rather than cost leadership. As a market leader, they are forced to shift their competitive strategy by their main competitor. The pressure from Lowe’s has also caused the company to replace the CEO in 2007. Do international Opportunities exist for Home Depot beyond North and South America? The main purpose of targeting DIY customers is
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training and other else. Besides that, the employees have more knowledge and pool of information about how to use machine or efficient use of the resources. For the example, the Toyota Company implement a concept which is JIT (Just in Time) to reduce the cost and promote the benefit of product (Likert, 2004). It is also the oldest and first way by Toyota and still uses it now. After that, Toyota add automation concept into management. They realize that Toyota way is also the most important change in Toyota’s
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1(d).Value Chain Analysis: A Way to profit improvement & cost Reduction Learning Objective 1. how to identify the value added activity 2. how to rectify the non –value added activity 3. application in profit planning & cost reduction INTRODUCTION Competitive advantage for a company means not just matching or surpassing their competitors, discovering what the customers want and then profitably satisfying, and even exceeding
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Question 2 What are the various types of switching costs? According to (Investopedia,2015), switching cost can be defined as negative financial and non-financial impacts a customer would endure if they leave a particular brand, organisation or service that has been serving them for a period of time . This is further proven by (BusinessDictionary.com, 2015) where switching costs are costs that a customer need to face when changing to another brand or supplier especially when the previous brand has
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Unit 1 Lecture This unit explores the general business environment, in the Prologue, and the reason for the existence of managerial accounting in Chapter 1. Managers are in need of information. Managerial accounting is the vehicle that satisfies that need. Without reasonable, valid, timely information companies will always be at a disadvantage when it comes to competing in the marketplace. Managers use the provided information to carry out three major activities: planning, directing and motivating
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