This will enable the company to counter competitors products accordingly making continued returns. When a business is engaged in a competitive sector, having a wide product line helps to spread the risks and…
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The relationship between the amount of labour and capital employed with regards to the law of diminishing productivity helps management in various ways. The management can be able to alter levels of various inputs in a bid to adjust productivity usually upwards. The main issue that faces management can be deciding what the best level of input is to maximize profit as opposed to maximizing production. As firms vary the number of workers in a bid to vary labour, the addition of more workers strains the small work space and tools. This ultimately leads to down slope in the marginal product of labour. Since land and Capital are the only fixed factors of production, labour would be the only factor varied here.
The most substantial effects of the diminishing marginal returns for a company can be its effect on the cost of production. Productivity of labour gets determined by the variable cost of labour. When productivity of a worker goes up the cost of production goes down but when a firm goes through diminishing marginal returns, the productivity goes down. The cost of extra units also begins to raise this, therefore, results in low profits. (Becker 2007)
Although making profit may be the key goal for many firms, finding the best way to maximize profits without altering so many inputs in production can be important. Analyzing the best mix of the factors of production varying labour will eventually lead to maximum profits and opportunities for firms. Analyzing primary competitors’ production strategies can also help in evaluating the best way to handle
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The researcher deals with the manufacturing company Fisher & Paykel New Zealand which supplies its dishwasher and washing machine in Australia. Fisher & Paykel Appliances manufactures designs and markets innovative household appliances which are developed to provide technology, user friendly, design and environmental awareness.
An individual essay that carries out an analysis of Vodafone and its competitive environment. Table of contents 1. Introduction 3 2. Overview 3 3. Industry analysis 4 3.1 Porter’s five forces 4 4. Internal analysis 5 4.1 Resources and capabilities of Vodafone over the past five years 5 4.2 The key business strategies of the company over the past five years - Porter’s generic strategies 7 4.3 To what extent the company has aligned its resources and capabilities to its business strategies 8 4.4 Value Chain Analysis 9 5.
This paper, based on a case study, seeks to analyze Gap’s business environment. General environmental trends on the industry Gap Inc operates in the family clothing stores industry. The industry’s general environment comprises of factors such as “demographic, economic, political/legal, socio-cultural, technological, global, and physical trends” (Ireland, Hoskisson and Hitt, 2008, p.
Being the largest fast food chain restaurant in the world today with 32, 000 restaurants in 119 countries worldwide, McDonald’s set the bar so high and turned the competition so fierce. Hence, as an amateur in the field of food merchandising, it is highly beneficial to come up with a comprehensive, detailed, and clear-cut competitive market analysis of the world’s largest fast food chain.
As a result, the firm is always producing new technology products especially phones, entertainment electronics and computing electronics. A good example is their smart phone called iPhone that has come to be synonymous with smart phone. When the market thinks of a smart phone, they think of Apples iPhone.
The fresh or chilled subsector accounted for 11% of the fruit/vegetable juice sector in volume terms in 2004.
Juices (especially the launch of the Tropicana brand extensions) have been a key driver of growth in the soft drinks industry in UK from 1999 to 2004.
Toyota has been damaged due to the recent diminished in the price of U.S dollar.
The main competitors of Toyota in the market today are General motors and Honda. General Motors is dominating the market since last 81 years. Honda fills major portion of automobile
The author states that CEMEX should focus on enhancing its internal structure to take the advantage from its targeted market and effectively contribute to its development. The given case study reveals that CEMEX has strategically significant insights about market dynamics and customer preferences.
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