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In management strategic decision making involves great complexity, uncertainty and risk. Describe the strategic decision making process and consider the effects of bounded rationality and cognitive simplification on the performance of strategic decision makers.
Q. Behaviour of divisional senior executives? EVA can affect the behaviour of divisional senior executives in the following ways. 1. They would concentrate their investment
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Q. Show the Merits of residual income? Merits of residual income (RI) - Consistent or goal congruence with profit maximisation e.g. an enforced measure of profitability.
Illustrations of internal failure cost The internal perspective may control performance by assessment of internal quality failure. Costs incurred before customer has received
1. Discuss the Retrenchment Strategy of Sara Lee.
Components of the cost of production Any sustained rise in input prices usually lead to an increase in productprices through the cascading effect. The major components of the c
Whether an organization has the resources and competences to deliver a plan
Corporate parenting is a type of business strategy that views a corporation in terms of resources and capabilities in an effort to develop business unit value, and align those busi
Three ways of sustaining competitive benefit are? Ans) differentiation, Price-based strategies and lock-in
Q. Explain about Residual income? Residual income is profit earned by a division less a "notional interest charge" for investment of finance within it.
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