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Q. Explain Activity based management?
Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources. The aim is that once cost drivers are created, organisations can aim to reduce cost, by creating models for more effective planning and control. ABM can lead towards the elimination or reduction of non-value added activities e.g. customer returns, complaints and obsolesce of stock. By eliminating activities which don't add value to customers, an organisation may still satisfy customers and at the same time make fewer demands on organisations resources.
Q. Explain Performance ratios - Return on capital employed? Return on capital employed (ROCE) = (Profit before interest and tax (PBIT) / Capital employed) x 100% The
Q. What do you mean by Controllable costs? Controllable costs Divisional variable (marginal) cost. Divisional 'specific' fixed cost e.g. Specifically incurred by
Discuss the key activities of the strategic management process. Explain why it is important for managers to recognise the interdependent nature of these activities.
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caselet in strategic management :National Competitive Advantage of IKEA Group, a Swedish company founded in 1943 with its headquarters in Denmark, is a multinational operator of a
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