What Skills Should a Person Have for Managing a Business

question 6

Essay

What skills should a person have for managing a business unit following a differentiation strategy? Why? What should a company do if no one is available internally and the company has a policy of promotion from within?

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Definitions:

Fixed Costs

Costs that do not fluctuate with the level of production or sales within a certain range, such as rent, salaries, and insurance premiums.

Variable Cost Per Unit

The cost associated with producing one additional unit of product or service, which varies depending on the level of production or service delivery.

Selling Price Per Unit

The amount at which a single unit of product is offered for sale to customers.

Contribution Margin

The amount by which a product's sales exceed its variable costs; used to cover fixed costs and contribute to profit.