According to Information Provided in Michael Porter's Model That Describes

question 36

Essay

According to information provided in Michael Porter's model that describes segment structural attractiveness,the suppliers' growing bargaining power is a real threat.What is considered to the best defense for such a threat?

Understand the risk-return trade-off in investing.

Understand the relationship between future profit expectations and stock prices.

Differentiate the performance and purposes of index funds versus actively managed mutual funds.

Comprehend the role of mutual funds as financial intermediaries.

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Definitions:

Cycle Inventory

Inventory that is held or maintained in the supply chain to facilitate the regular, ongoing production and distribution of goods.

Flow Time

The total time it takes for a product to move through a production process, from start to finish.

Economies of Scale

Cost advantages obtained due to increased production scale, where the cost per unit of production decreases with larger volume.

Cycle Inventory

The inventory a company needs to meet its average sales demand between the arrival of stock replenishments.