Response DQ's
Subject: Strategic Management
Q. Read the below paragraph and write your response for minimum 100 words. Also mention any examples. Note: References must
There are various forces that lead to change in the industry and impact the organization significantly. This depends on five basic forces and the collective strength of these forces is determined by the ultimate profit made by the organization. The higher the impact the higher is the level of change. The strongest and most competitive force that impact the industry leads to strategy formulation. For instance, Nike has a strong position in the market and is not threatened by the new entrants in the market (Dulčić et al, 2012). If there will be new entrants then Nike will attain low returns because the substitute product will be available in the market. But in such a situation Nike has to develop strategies to sustain in the competitive environment and cope up with the substitute product with better price and quality so that the consumers do not consider buying the substitute product. Every industry has certain technical or economic traits that lead to these competitive forces. Strategy is developed to attain a position in the market even when there is a threat of new entrants, high bargaining power etc. (Porter, 2008). Higher the threat of entrants lower will be the profitability, higher the bargaining powers of consumers or suppliers lower will be the profit attained by the company. New entrants in the industry bring new products with better features and quality to attain the desired market share. The impact of the threat of entry also depends on the number of barriers present and the reaction obtained from the rival companies. If the barriers are high it means that the new entries cannot cope up with the existing companies or the rival companies and because of that the newcomers will not pose any kind of threat on the existing companies.
Subject: Managerial Accounting
Q 1. Read the below paragraph and write your response for minimum 100 words. Also mention any examples. Note: References must
How the Department control over the budget process:
On common base each department should have the specific tool in order to control and monitor the departmental budget, For example in the service firms which provide services, the operating plan has not standardised with presented budget, however in the case of manufacturing companies while the tangible product is produced so the budgetary cost is estimated by each department according to historical forecasting, as well as it is required to present an estimation of the cash flow statements per time segments particularly (Wild & Shaw, 2016).
Q 2. Read the below paragraph and write your response for minimum 100 words. Also mention any examples. Note: References must
It is possible for each department to use its own predetermined overhead rate, as each department has its pre-established structure and overhead costs.
The cost of the process is widely used to manufacture large quantities of products. It is highly recommended that it be used when production costs are part of various company departments (Drury, 2012). A good example to illustrate are those of oil refineries and chemical producers.
In cost processes the costs are accumulated by the departments over a period of time.