Women's Role in National Development

Chapter 12-The Strategy of International Business Strategy and the Firm Strategy-A unfalterings scheme can be defined as the actions that the managers take to name goals of the firm. For most firms the preeminent goal is to maximize the hold dear of the firm for its owners. To maximize the nourish of the firm managers must pursue strategies that add the profitability of the enterprise and rate of profit growth over time. Managers can increase the profitability by choosing strategies lower hail or those that add value to the firms products. both(prenominal) enable a firm to raise its prices. Managers can each sell in existing markets or enter refreshful markets to maximize profits. In order to increase profitability a firm must keep on creating value. Value is measurable by the difference in its cost of production and the value that consumers give to the products. The more value, the high uper the price. Value is hard to stimulate because (1) It is competing with others in the market so it has to charge a lower price to stay in the business. (2)It is impossible to charge either customer a different price according to the value he/she may assume of the product. A firm has high profits when it creates more value and does so at a lower cost. Low cost strategy- Strategy which focuses mainly on lowering production costs.

Differentiation strategy- Strategy that primarily focuses on increasing the attractiveness of a product. Superior profits go to those firms that create superior value. Either drive down the cost structure or differentiate products in some carriage so that consumers value them more and pay a pension price. Operations: The Firm As A Value Chain The operations of a firm can be thought of as a value chain composed of a serial of distinct value creation activities such as production, marketing, R&D etc. If a firm is to implement a strategy efficiently it must manage these activities efficiently and in a manner that is consistent with its strategy. Primary... If you want to get a full essay, order it on our website: Orderessay

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