Homework 2

Homework 2 - With new technology being uncovered everyday...

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Michael Samuels 9/23/08 G12358459 Section 10 Second Homework 1. Competing firms benefit from the reports because it sheds light on the competition’s balance sheet and cash flow and other such things. Both companies are able to locate areas they can improve on, such as lowering their cost of goods sold, by seeing what other firms are doing. 2. The idea of specialization comes into play here. It is more efficient for analysts to focus on 10 firms in the same industry that way they get to know a given industry inside and out. If they have different firms in different industries, the analyst will never be able to garner enough knowledge about any particular one. 3. The following is the value chain for Kellog’s Raw materials Mixing/Cooking Packing Shipping 4. Profits will be higher if there are fewer firms, less powerful suppliers of raw materials, and if there is a small threat of substitutes. All three things will help have higher profits. 5. Is demand growing for large screen televisions?
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Unformatted text preview: With new technology being uncovered everyday that creates better quality televisions demand can only go up. Is demand for the product seasonal? In some instances it can be. During the holidays, TVs typically go on sale/special so more people may be looking to buy one. That season would run from November through the New Year. Is the product sold to businesses or to consumers? It is sold to both. A TV is usually sold to consumers, but more and more businesses are starting to buy large screen televisions for teleconference and other business related reasons. 6. I think people decide to purchase Starbucks coffee for the uniqueness that it offers. Customers can create their ‘dream’ coffee drink from Starbucks vast selection of ingredients. Starbucks also uses quality materials and prices are fairly competitive. Those three things together make Starbucks a profitable product, the only thing holding it back is its calorie content....
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This note was uploaded on 10/20/2010 for the course ACCY 110 taught by Professor Christopherjones during the Spring '10 term at GWU.

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