You work for a business consulting firm, and you have been asked to advise Bamboo Home, a home furniture retailer on implementing a global information systems. What general benefits can Bamboo Home expect from a globalized system?
What will be an ideal response?
Benefits in globalizing include superior management and coordination. This may not show up on balance sheets, but will affect profitability in the long run. Related benefits are the ability to switch suppliers quickly if there is a crisis and the ability to use excess capacity in one region to fulfill demand in another. Additionally, they can expect major improvements in production, operation, and supply and distribution. Value-adding activities can be concentrated in regions where they are most economical and efficient. Also, with global systems, fixed costs around the world can be amortized over a much larger customer base. In addition, corporate funds can be used over a much larger capital base.
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Risk ____ involves identifying, assessing, and responding to project risks in order to minimize the likelihood and impact of the consequences of adverse events on the achievement of the project objective
a. management b. assessment c. identification d. response generation
The traditional approach to pricing strategy emphasizes long-term profitability and ignores the experience effect and competition. Rationale: It emphasizes short-term profitability
Indicate whether the statement is true or false