Explain Porter's generic strategies for financially based objectives?
What will be an ideal response?
Michael Porter proposed three generic strategies that provide a good starting point for a company's overall strategic
approach to the market: overall cost leadership, differentiation, and focus.
• Cost leadership: In the cost leadership generic strategy, companies leverage their competitive advantages in
low-cost production or lean supply chains (or low-cost service delivery) to price their products lower than those of
their competitors, in an effort to boost volume and increase profit. Companies can take advantage of economies of
scale (companies reduce their per-unit cost through large-scale operations, like enormous automotive assembly
plants) and experience curve effects (companies become more efficient at building products and delivering services
as they gain experience) to reduce manufacturing and service delivery costs.
• Differentiation: In the differentiation generic strategy, companies with competitive advantages in design can
create products or services clearly superior and different to those of competitors to differentiate their firm from
others. Customers must be able to acknowledge the difference and pay a premium for it.
•Focus: In the focus generic strategy, organizations target a particular market segment or niche using either the cost
or differentiation method.
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Information relating to direct labor for the McGill Company follow: Actual direct labor hours 5,600 Standard direct labor hours 5,400 Total direct labor per payroll $53,200 Standard labor rate per hour $9.00 The entry to record the direct labor cost is:
a. Work in process 53,200 Labor rate variance 2,800 Labor efficiency variance 1,800 Payroll 48,600 b. Work in process 50,400 Labor rate variance 2,800 Payroll 53,200 . c. Work in process 48,600 Labor rate variance 2,800 Labor efficiency variance 1,800 Payroll 53,200 d. Work in process 51,400 Labor efficiency variance 1,800 Payroll 53,200
The basis used in computing unit cost for the process costing system is made up of certain specific jobs worked on during the fiscal year
Indicate whether the statement is true or false
On an automatic call distributor (ACD), a(n) ____ state means the analyst is ready to take calls.
A. ready B. set C. available D. on line
Which of the following is true regarding whether the "common enterprise" element of the SEC v. W.J. Howey Co case requires horizontal or vertical commonality?
a. The federal circuits are in agreement that there must be horizontal commonality even if vertical commonality can be shown. b. The federal circuits are in agreement that there must be vertical commonality even if horizontal commonality can be shown. c. There is a split in the federal circuits as to whether the common enterprise element of the test can be met by showing horizontal commonality or whether there must be vertical commonality. d. There is a split in the federal circuits as to whether the common enterprise element of the test can be met by showing vertical commonality or whether there must be horizontal commonality.