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The centralized structure used by Borders (Chapter 11 Opening Case)did not provide information from local stores that might have been useful in changing its technology strategy more quickly than it did. This example illustrates the effect of structure on strategy.
Unit Selling Price
The amount of money charged for a single unit of a product or service.
Annual Fixed Costs
The total fixed costs incurred by a business within a year, inclusive of expenses that do not fluctuate with production or sales volume.
Average Operating Assets
An efficiency metric calculated by averaging the value of a company's operational assets over a period, often used in rate of return calculations.
Direct Material Measures
Quantitative assessments used to determine the amount of direct materials required for production.
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