Summary of Economics of Strategy Book Essay

Words: 1530
Pages: 7
Open Document
Chapter 1, Basic Microeconomic principles

TC function: Represent the relationship between total cost and output, assuming that the firm produces in the most efficient manner possible given its current technological capabilities.

Semifixed: fixed over certain ranges of output but variable over other ranges

AC(Q): average cost function; describes how the firms average cost function or per unit of output costs vary with the amount of output it produces.  When average costs decreases as output increases, there are economies of scale

Margincal cost: refers to the rate of change of total cost with respect to output the incremental cost of producing exactly one more unit of output. Margincal cost often depeds on the total volume …show more content…
Smith’s theorem: states that individuals or firms will not make specialized investment unless the market is big enough to support them. He also states that larger markets will support a more specialized array of activities than smaller markets can
3) Inventories Traditional inventories: parts at an auto repair shop Non traditional inventories: customer service agents at a call center Costs of inventory: interest on the expenses born in producing the inventory and the risk that it will depreciate in value while waiting to be sold The need to carry inventories creates economies of scale because firms doing high volume of business can usually maintain a lower ratio of inventory to sales while achieving a similar level of stock-outs. This reduces their average costs of goods sold. Cube-square volume: as capacity increases, the average cost of producing at capacity decrease because the ratio of surface area to volume decreases

Special Sources of Economies of Scale and Scope
1) Economies of scale and scope in purchasing:
a. The price per unit of many items falls as the amount we purchase increases
b. A supplier might care how much it sells to a purchaser because of the following reasons:
i. It may be less costly to sell to a single buyer ii. A bulk purchaser has more
Show More

Related Documents: Summary of Economics of Strategy Book Essay

Apple Chairman' Statement and Reflective Writing Essay

Section 1: A draft Executive Summary Apple Inc. is a multiplier company. The California Corporation founded in 1977. Its wholly-owned subsidiaries designs, manufactures and markets personal computers, mobile communication and media equipment, and other internet applications, it provides the products to the different type of customers. The company gives the strategy is free, The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware…

Words 1453 - Pages 6

Marketing Plan Template Essay

Marketing Winter Session 2013 Prof Hatin BE SURE TO WRITE THIS PLAN IN 3rd PERSON 1.0 Executive Summary (Write this last, it is a summary or synopsis of the entire plan) 2.0 Situation Analysis (Summary of section) (The Marketing Environment –include Political, Legal, Socio-Cultural, Economic, Technological forces) 3.1 Market Needs(Summary) 3.2 The Market(Summary) 3.3.1 Market Trends (Detail from Research) 3.3.2 Market Growth (Detail from Research)…

Words 807 - Pages 4

Plan: Marketing Plan Essay

your paper. This marketing plan outline differs from the one on page 318 in your book because this is not only a marketing plan but also an assessment of what you know about the marketing concepts. This marketing plan will have more depth than a typical marketing plan. Notice that the Executive Summary is listed first in the outline, but you will write this last (Part 6). The Executive Summary is a summary of what your whole plan is about, so you really can’t right it until the end. You will…

Words 989 - Pages 4

RENT a Car Business plan Essay

Car Rental Business plan Excecutive Summary Company and Financing Summary Products and Services Overview Strategic Analysis with current research! Marketing Plan Personnel Plan 3 Year Advanced Financial Plan Expanded Financial Plan with Monthly Financials FREE 30 Page Sample Private Placement Memorandum FREE PowerPoint Presentation for Banks, Investors, or Grant Companies! 1.0 Executive Summary The purpose of this business plan is to raise $300,000 for the development of a car…

Words 1653 - Pages 7

Marketing Plan Example Essay

Marketing Plan Outline Part 6: 1. Executive Summary (due ___) Give a brief summary of what your marketing plan is all about. (Write last, but put first.) If you do not know how to write an executive summary, look for advice in the book or online. There are many websites out there to guide you in addition to information on the class website. Part 1: 1. Company Description a. Legal name and form (sole proprietorship? corporation?) b. History c. Company’s mission d. Management…

Words 615 - Pages 3

Lesson Plan Ch13 1 Essay example

* have students alternate reading, giving feedback, explaining importance, and making predictions. b. – CRISS Note taking– selective underlining/highlighting {handout} - Use printed copy of book on Smartboard (or overhead) - CRISS - Think-Pair-Share - CRISS - One Sentence Summary c. - RAN Strategy – explain columns and use (see handout) d. - Review and discuss 'The Guide to Reading', e. - Power point (background information and review) f. - Bell Work: DBQ {Date Based Questions} on SmartBoard…

Words 1980 - Pages 8

Business Plan-Example Essay

-0773892174 Fax-0338937268 Table of Contents 1.Executive Summary 2 1.1Objectives 1.2 Mission 2.Company summary 3 2.1 Company ownership 3.Start-up summary 3 4. Products and Services 4 5. Market Analysis Summary 4 5.1 Market Segmentation 5.2 Target Market Segment Strategy 6. Strategy and Implementation Summary 5 6.1 Competitive Edge 6.2 Marketing Strategy 6.3 Sales Strategy 6.4 Sales Forecast 7. Management Summary 6 8. Financial Plan 6 8.1 Important Assumptions 8.2 Break-even…

Words 1312 - Pages 6

Art of War Summary Essay

Art of War is a famous Chinese military strategy book written by Sun Tzu, an ancient Chinese military general. He was famous during his time and for his work entitled Art of War, which made him known even up to our century. According to Wallace (2010), Sun Tzu is the author of one of the most prominent pieces of literature during the era of the Warring States in which China entered around the first millennium B.C.E. In this work of art Sun Tzu takes a rational approach to the problem of conflict…

Words 1103 - Pages 5

Essay on Seminar 1

copyright protection under the Act. § Do not remove this notice. 1 Words of Wisdom “The secret of a good [seminar] is to have a good beginning and a good ending; and to have the two as close together as possible.” (George Burns) 2 Business and Economics Welcome to the wonderful world of ... Advanced Strategic Management Presented by Ralph Kober Accounting ACF5100 Advanced Strategic Management Accounting Can you pass it? YES YOU CAN! “Learning is not attained by chance, it must be sought for…

Words 3552 - Pages 15

Balvir Dissertation Essay

Contents Acknowledgements 3 Executive Summary 4 Chapter 1: Introduction 5 1.2 Aims and Objectives 6 1.3 Research Questions 6 1.4 Rationale for the research: 7 1.5 Scope of research 7 1.6 Structure of Dissertation: 8 Chapter 2: Literature Review 9 2.1 Definition of Tax Avoidance 9 Chapter 3: Analysis and Discussions 10 Chapter 4: Conclusions 10 Chapter 5: Recommendations 10 References 11 Acknowledgements I hereby take the opportunity to thank my friends who have provided me moral support…

Words 1856 - Pages 8