Exam2 - FC_Book Notes - The flashcards are formatted for...

Info iconThis preview shows pages 1–18. Sign up to view the full content.

View Full Document Right Arrow Icon
Cost Drivers Value Chain
Background image of page 1

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

View Full DocumentRight Arrow Icon
Provides the basic tool for cost analysis. The structural determinants of the cost of an activity, and differ in the extent to which a firm controls them.
Background image of page 2
Cost Advantage Cost Drivers
Background image of page 3

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

View Full DocumentRight Arrow Icon
Determine behavior of costs within an activity, reflecting any linkages or interrelationships that affect it. A firm’s cumulative cost of performing all value activities is lower than competitors’ costs; hinges on its sustainability.
Background image of page 4
Relative Cost Position Sustainability
Background image of page 5

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

View Full DocumentRight Arrow Icon
Present if the sources of a firm’s cost advantage are difficult for competitors to replicate or imitate. A function of composition of a firm’s value chain versus competitors and relative position in relation to the cost drivers of each activity.
Background image of page 6
Control Cost Drivers Value Chain
Background image of page 7

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

View Full DocumentRight Arrow Icon
The basic tool for determining competitor costs. A firm can gain an advantage with respect to the cost driver of value activities representing a significant proportion of total costs.
Background image of page 8
Control Cost Drivers; Reconfigure the Value Chain Reconfigure the Value Chain
Background image of page 9

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

View Full DocumentRight Arrow Icon
A firm can adopt a different and more efficient way to design, produce, distribute, or market the product; gives a firm a cost advantage. Two major ways a firm can gain a cost advantage:
Background image of page 10
Learning Controlling Scale
Background image of page 11

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

View Full DocumentRight Arrow Icon
Increasing scale through acquisitions, product line extensions, market expansion, or marketing activity can lower cost; reinforce scale economies; exploit scale economies that favor firms; emphasize value Does not occur automatically, but results from the effort and attention of management and employees.
Background image of page 12
activities driven by advantageous scale.
Background image of page 13

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

View Full DocumentRight Arrow Icon
Keep Learning Proprietary Controlling Learning
Background image of page 14
Manage the learning curve, keep learning proprietary, and learn from competitors. Use backward integration to protect know-how, control employee publications, retain key employees, and have strict non- disclosure provisions.
Background image of page 15

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

View Full DocumentRight Arrow Icon
Throughput Level Throughput
Background image of page 16
increase average capacity utilization by finding ways to level fluctuations of volume through its value chain (i.e. promoting year round uses for product). Fluctuations in the
Background image of page 17

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

View Full DocumentRight Arrow Icon
Image of page 18
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/08/2011 for the course MAN 4720 taught by Professor Staff during the Spring '08 term at University of Central Florida.

Page1 / 63

Exam2 - FC_Book Notes - The flashcards are formatted for...

This preview shows document pages 1 - 18. Sign up to view the full document.

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