Final Exam Review

Final Exam Review - Click toFlanders subtitle style Dean...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style 4/9/11 Final Exam Review Dean Flanders
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4/9/11 Owners often delegate decision rights to managers due to a lack of information. Because they do not own the company resources, they do not have as much of an incentive to use the resources effectively. As such, there needs to be control systems, which influence the reward and performance-evaluation systems to help align the interests of the decision makers with those of the owners l Three things interrelated
Background image of page 2
4/9/11 Value consists of the sum of consumer and producer surplus. If you can increase one of those, you are creating value. Reduce Producer & Consumer Transactions Costs Increase Demand Devise New Products & Services
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4/9/11 Consumer Transaction Costs Include such things as the costs of searching for the product, learning product characteristics and quality, negotiating terms of sale with a supplier,, and enforcing agreements. Increasing product accessibility and convenience of delivery Walmarts in more rural areas Puts products that are routinely purchased together near each other in the stores
Background image of page 4
4/9/11 l Producer Transaction Costs and Production Costs Lowering production costs shifts supply out, creating value. Negotiating terms with customers and paying
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 18

Final Exam Review - Click toFlanders subtitle style Dean...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online