The following points highlight the two major issues of product classification of a firm. The issues are: 1. Competing Products 2. Market/Demand Classification for Products. Issue # 1. Competing Products: They can be classified into one of three categories as follows: (i) A breakthrough product: This offers either a radical performance advantage over competition, a drastically lower price or, in [...]
The following points highlight the ten major arguments in favour of acquisition as a strategic choice for a firm. The arguments are:- 1. Reduction of risk 2. Avoidance of profit slump 3. A means of entry into a new area 4. A means of obtaining cash 5. Welding together a fragmented industry 6. Removal of competition 7. Opportunity for synergy [...]
The strategy adopted by a firm, for the purpose of evaluation as to its effectiveness, should be judged against the following criteria and allied aspects:- 1. Functional Evidence 2. Realism and Practicality 3. Consistency in Direction 4. Assumptions Validity 5. Contingencies Recognition 6. Appropriateness. Criteria # 1. Functional Evidence: (i) What are the performance indicators—quantitative and qualitative—identified for scrutiny? (ii) [...]