Strategic Management

What is the difference between sunk cost and relevant cost? Give an example for each.

Sunk cost and relevant cost are two important concepts that are used to make business decisions. The main difference between them is that sunk costs are costs that have already been incurred and cannot be recovered , while relevant costs are costs that will be incurred in the future and can be affected by a business decision . Example of Sunk Cost: A sunk cost is a cost that has already been incurred and cannot be recovered, regardless of the future business decision. For example, a company has invested $10,000 in a marketing campaign for a product that is no longer selling well. The $10,000 spent on the marketing campaign is a sunk cost because it has already been spent and cannot be recovered, even if the company decides to discontinue the product. Example of Relevant Cost: A relevant cost is a cost that will be incurred in the future and can be affected by a business decision. For example, a company is deciding whether to accept a special order for a product that requires additiona...

Steps in a Customer Value Analysis

How to Conduct Customer Value Analysis? Steps in a Customer Value Analysis? Customer value analysis is a process of identifying the key attributes and benefits that customers value most in a product or service. It involves gathering data about customer needs and preferences and using that data to improve the value proposition of the product or service. Here are the steps involved in conducting a customer value analysis: Identify the Target Customers: Determine the customer segment that you want to analyze. This could be based on factors such as demographics, psychographics, or behavior. Define Customer Value: Determine what customers value most in your product or service. This could be based on features, benefits, or price. Gather Data: Collect data about your target customers' needs and preferences. This could be done through surveys, focus groups, customer interviews, or other research methods. Analyze the Data: Analyze the data collected in step 3 to ...

Explain the push/pull view of supply chain processes. Consider the supply chain involved when a customer orders a book from ‘Rokomari.com’ or "Amazon". Identify the push/pull boundary and two processes each in the push and pull phases.

Question: Explain the push/pull view of supply chain processes. The push/pull view of supply chain processes is a framework for understanding how products move through the supply chain. The push/pull view considers two broad categories of processes: push processes and pull processes. Push processes are driven by forecasts and are typically used to create a supply of goods in anticipation of customer demand. In other words, the supply chain is "pushing" products towards the customer, based on a prediction of what they will want. This approach can be useful for products that are predictable and have stable demand, such as basic commodities or staple goods. Pull processes, on the other hand, are driven by customer demand. They are used to replenish inventory in response to actual customer orders. In this case, the supply chain is "pulling" products in response to customer demand. This approach is more suited to products with less predictable demand, such as seasonal o...

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