Market based approaches, Strategic Management

Assignment Help:

Q. Market based approaches?

Cost based approaches to transfer pricing can ignore what external competition would charge, therefore 'open (external) market price' could be used internally as a transfer price to encourage greater market efficiency and goal congruence.  When the external market price is used as a transfer price, a seller will always be encouraged to sell because they would be indifferent between their charging policies for internal or external customers. An internal buyer generally would not want to pay any higher than what the external market price is, it should therefore not discourage them from buying internally if a fair market price is charged.

The main problem with market based approaches is that establishing a market price can be difficult, different suppliers will quote different prices, the price may be affected by such factors as quality, quantity, discounts and credit terms available.  In some cases no intermediate market exists, therefore a comparable market product and price may not be available.


Related Discussions:- Market based approaches

Initiate organizing campaign for technical employees union, 1) Company A wa...

1) Company A wants to discourage unionization through the United Technical Workers of America. True or False: In order to do so, it can initiate an organizing campaign for the Tech

Describes a business model , Product flows,  information flows, service flo...

Product flows,  information flows, service flows participants' roles

Prepare a short notes on normal distribution, Problem 1: a. Prepare a s...

Problem 1: a. Prepare a short notes on Normal distribution. b. The probability that an employee getting occupational disease is 20%. In a firm having five employees, what is th

Humantitiesstudying the humanities in a business or, Ask question #Minimum ...

Ask question #Minimum 100 words accepted What is the value of studying the humanities in a business or technical curriculum? How might a topic such as ancient art enhance contempor

The strategic option of withdrawal might be considered where, An organizati...

An organization is unable to secure enough resources or competence.

Explain economic value added, Q. Explain Economic value added? Economic...

Q. Explain Economic value added? Economic value added was developed by Stern Stewart & Co and is a registered trademark. EVA is an estimate of economic profit, measured as Net

Swot appendix, Over the next three weeks, you will perform a SWOT Analysis ...

Over the next three weeks, you will perform a SWOT Analysis specific to your topical area for your case study. This SWOT Analysis will become "Appendix A" for your case study.

Statistical procedure for management, A highly perishable drug spoils after...

A highly perishable drug spoils after three days.  That is, a fresh unit on day t may be used on day t, day t+1, and day t+2, but must be disposed of at the end of day t+2. Each

Make a list of business goals, Harriet's Fruit and Chocolate Company was es...

Harriet's Fruit and Chocolate Company was established in 1935 in the Pacific Northwest of the United States to ship gift baskets of locally grown peaches and pears to customers in

Strategic plan, To maximise the potential of our business I would like you ...

To maximise the potential of our business I would like you to prepare a strategic plan, specifically I would  like the plan to incorporate a mission statement, a SWOT analysis, a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd