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Strategic Positioning
The company must identify its strategic choices. This can be done from the firm’s objectives, which emanates from the firms mission. Strategies have to be developed to achieve a competitive advantage over competitors, which may occur due to cost, price, quality, brand name, image of the product etc. Michael Porter highlighted two fundamental rules to competitive benefit:
• Cost Leadership strategy• Differentiation
Within each of these strategies a firm may decide to focus.
what is the topic about? what are the practical implications? what are the practical criticisms?
COST-VOLUME PROFIT (C-V-P) ANALYSIS INTRODUCTION You can employ cost-volume-profit analysis to examine the natural relationship among cost, volume, and profit in pricing decision
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Competition oriented pricing policy Most companies fix the price of their products after a careful consideration of the competitor's price structure. Deliberate policy may be f
calculate formula
Representation of Simplex method We shall use the example previously stated for the graphical solution. The standard form of the model is given by: Maximize : Z = 3X E + 2
ABC System and service organizations The ABC system has been taken up as applied to a manufacturing organizations with the same efficiency. One basic characteristic of service
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C-V-P ANALYSIS UNDER UNCERTAINTY A major limitation of the basic C.V.P analysis is the assumption that the unit variable cost, selling price and the fixed costs are constant an
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