Answer:
The correct answer is True.
Explanation:
A stability strategy seeks to remain as long as possible in the maturity phase (or stability) of the company, reaping the fruits of the investments made. A survival strategy seeks to survive in a hostile environment, while retaining its market share.
In general, stability and survival strategies are defensive strategies, that is, strategies that seek to maintain the competitive position achieved by the company. This fact does not mean that the company cannot grow; in fact, on many occasions, to maintain market share growth is necessary (sustainable growth). In other cases, these strategies involve a decrease (organizational downsizing, outsourcing or outsourcing of activities).
These strategies are designed for the level of corporate strategy, although they can also be adopted for competitive or business strategies, as they allow the analysis for each business or activity to which the company is engaged.
Answer:
Market growth rate
Explanation:
The market growth rate refers to a rate in which the company is able to know how much it is growing it could be measured by comparing the prior years performance.
The BCG comprise of Boston consulting group that includes four things i.e. star, question mark, cash cow and dog in which the market growth rate is appears on the vertical axis, and in the horizontal axis, the relevant market share is displayed
Hence, the market growth rate is the answer
Answer:
95%, 73.1%
Explanation:
Actual output= 950 per year
Design capacity= 1300 per year (Theoretical capacity)
Effective capacity= 1000 per year (efficiency of the shop)
Now Efficiency = actual output/effective capacity = 950/1000 = 0.95, 95.0%
Utilization= actual output/ design capacity = 950/1300 = 0.7308, 73.1%
Answer:
Total cost = Total ordering cost + Total holding cost
Total cost = DCo + QH
Q 2
Where
D = Annual demand
Co = Ordering cost per order
Q = EOQ
H = Holding cost per item per annum
D = 40,000 units
Co = $48
H = 18% x $8.00 = $1.44
EOQ = √2DCo
H
EOQ = √2 x 40,000 x $48
$1.44
EOQ = 1,633 units
Explanation:
EOQ equals 2 multiplied by annual demand and ordering cost divided by holding cost per item per annum. The holding cost per item per annum is calculated as holding cost rate multiplied by unit cost.
Answer:
$153,000
Explanation:
The computation of the net present value is shown below:
= Present value of all cash inflows including salvage value after considering the discount factor - initial investment
where,
Present value is
= Four year cash inflows × PVIFA factor for 11.5% for 4 years + (one year cash inflow + salvage value) × discount rate for 11.50% at five year
= $300,000 × 3.0696 + ($300,000 + $100,000) × 0.5803
= $920,880 + $232,120
= $1,153,000
And, the initial investment is $1,000,000
So, the net present value is
= $1,153,000 - $1,000,000
= $153,000
