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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.
Strategy used to gain as much sales volume as possible as fast as possible by undercutting competitors' prices.
Q. Disadvantages of divisional structures? - As the complexity and diversity of products and markets within the group increase, central coordination by a head office or holding
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WHAT ARE THE CHARACTERISTICS OF EACH COMPONENT OF THE GE MATRIX?
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