Depict the expansionist strategy graphically as a plot of capacity against time and discuss the benefits of adopting this strategy
What will be an ideal response?
The expansionist means large, infrequent jumps in capacity. Several factors favor the expansionist strategy. Expansion can result in economies of scale and a faster rate of learning, thus helping a firm reduce its costs and compete on price. This strategy might increase the firm's market share or act as a form of preemptive marketing. By making a large capacity expansion or announcing that one is imminent, the firm can preempt the expansion of other firms. These other firms must sacrifice some of their market share or risk burdening the industry with overcapacity. To be successful, however, the preempting firm must have the credibility to convince the competition that it will carry out its plans and must signal its plans before the competition can act.
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Which one of the following adjustments decreases net income for the period?
a. Recognition of depreciation on plant assets b. Recognition of interest on a note receivable c. Recognition of services that had been provided to customers but the cash has not yet been received d. Recognition of rent as earned that had been received in advance from customers
Optical scanning involves direct machine reading of the codes and simultaneous transcription
Indicate whether the statement is true or false
In a diversified company, segments may be represented by different industries, geographical markets, and major customers
Indicate whether the statement is true or false
Arbor, Inc. had overhead of $310,000 during the year when $260,000 in labor costs were incurred. Estimates at the start of the year for overhead and labor costs were $300,000 for overhead and $250,000 for labor costs. The predetermined overhead rate would be:
A. 83.33%. B. 120.00%. C. 104.00%. D. 101.67%.