Which of the following production strategies is most appropriate for a High-cost business? a. Emphasize quality...
Which of the following production strategies is most appropriate for a High-cost business?
a. Emphasize quality in operations even when the cost of doing so is high.
b. Emphasize quality in operations when the cost of doing so is relatively low.
c.Emphasize operation efficiencies through learning, economies of scale, and capital- labor substitution possibilities.
d.Emphasize specialized quality in operations even when costs are high.
Homework Answers
Emphasize operation efficiencies through learning, economies of scale, and capital- labor substitution possibilities is most appropriate production strategies for a High-cost business.
Therefore correct answer is option c. Emphasize operation efficiencies through learning, economies of scale, and capital- labor substitution possibilities.
High-cost business has the strategy to focus on lowering the production cost as much as possible to remain competitive. For such businesses, reduction is production cost is possible by efficiency in operations through learning the efficient process, by increasing the scale of business so that they can achieve economies of scale and capital- labor substitution possibilities for lowering the cost.
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Which of the following production strategies is most appropriate
for a High-cost business?
a. Emphasize quality...
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Which drivers of cost advantage (Figure 7.7) do low‐cost
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undercut legacy carriers such as United Airlines and British
Airways?
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Jordan Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality...
Jordan Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Jordan produces and sells only 6,300 bikes each year. Due to the low volume of activity, Jordan is unable to obtain the economies of scale that larger producers achieve. For example, Jordan could buy the handlebars for $31 each; they cost $34 each to make. The following is a detailed breakdown of current production costs. Unit Cost Total Item...
Solomon Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality...
Solomon Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Solomon produces and sells only 7,400 bikes each year. Due to the low volume of activity, Solomon is unable to obtain the economies of scale that larger producers achieve. For example, Solomon could buy the handlebars for $31 each; they cost $34 each to make. The following is a detailed breakdown of current production costs: Unit Cost Total $16...
can anyone please answer the questions? it's about Management Decisions class. Thank you so much!! 34)...
can
anyone please answer the questions? it's about Management Decisions
class. Thank you so much!!
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Perez Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality...
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Cost Reductions and Local Responsiveness Choosing the most appropriate strategy for a firm in international business involves two essential dimensions. The firm must examine ways to reduce costs, which can be done in a number of ways. Standardization of products and components plays a very important part. Customers, however, don't always want standardized products, even if it means they will pay more The balance a firm seeks between the pressures for cost reduction and local responsiveness is one of the most essential...
Which drivers of cost advantage (Figure 7.7) do low‐cost
carriers such as Southwest Airlines and Ryanair exploit in order to
undercut legacy carriers such as United Airlines and British
Airways?
ECONOMIES OF SCALE • Technical input-output relationships • Indivisibilities • Specialization ECONOMIES OF LEARNING • Increased individual skills • Improved organizational routines PRODUCTION TECHNIQUES • Process innovation • Re-engineering of business processes PRODUCT DESIGN Standardization of designs and components • Design for manufacture INPUT COSTS • Location advantages • Ownership...
Jordan Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Jordan produces and sells only 6,200 bikes each year. Due to the low volume of activity, Jordan is unable to obtain the economies of scale that larger producers achieve. For example, Jordan could buy the handlebars for $37 each; they cost $40 each to make. The following is a detailed breakdown of current production costs. Unit Total Cost $...
Jordan Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Jordan produces and sells only 6,300 bikes each year. Due to the low volume of activity, Jordan is unable to obtain the economies of scale that larger producers achieve. For example, Jordan could buy the handlebars for $31 each; they cost $34 each to make. The following is a detailed breakdown of current production costs. Unit Cost Total Item...
Solomon Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Solomon produces and sells only 7,400 bikes each year. Due to the low volume of activity, Solomon is unable to obtain the economies of scale that larger producers achieve. For example, Solomon could buy the handlebars for $31 each; they cost $34 each to make. The following is a detailed breakdown of current production costs: Unit Cost Total $16...
can
anyone please answer the questions? it's about Management Decisions
class. Thank you so much!!
34) As the volume of production in a firm increases, the average cost per un decreasesti some optimal volume of production is reached, after which the average cost of production begin to rise because of A) diseconomies of scale. B) economies of scope C) di seconomies of scope, D) economies of scale. 35) The link between volume of production and the cost of building manufacturing...
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