Explain the fundamental factors considered when making decisions to achieve various goals of a firm?
A Firm’s history is given in a timeline from its inception in Year 1995 to Current Year:
1995 Invented and filed patent for software that improved production process.
1997 Introduced new innovations that went on the market at low price.
Major sales growth with expansion of the market share.
2000 Anotherfirm emerges as a serious competitor with new technology.
2003 Management observing its products are not doing good business decides to diversify.
2006New chief executive takes up position.
2097Firm abandons its low profit businesses to begin to invest in new products.
2010 Firm filed a petition against anti-competitive trade practices but lost the case.
2012 Becomes a high-cost manufacturer with a growing portfolio of products which was losing
hundreds of millions of dollars annually.
Restructuring that eliminated 10,000 jobs and cut more than $1 billion from annual costs.
2015New CEO took over reigns of the firm. To raise money, begins selling patent of select
portfolio and concentrates on narrow product line.
2018 Entered new markets by pushing aggressively into China, an important growth market.
2020 Share price improves/increases.
Explain the fundamental factors considered when making decisions to achieve various goals of a firm?
State the six steps in managerial decision making that lead to competitive advantage?
Using the ‘Four Stage Model’, describe your observations of the Firm’s changing ‘Economics of Business’.
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