STRATEGIC ACTIVISM AND NONMARKET STRATEGY David P. Baron and Daniel Diermeier Stanford University and Northwestern University ABSTRACT Activist NGOs have increasingly foregone public politics and turned to private politics to force change in the practices of firms and industries. This paper focuses on private politics‚ activist strategies‚ and nonmarket strategies of targets. A formal theory of an encounter between an activist organization and a target is presented to examine strategies
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the line 3x + 4y -22=0. ii. Find an equation of the line passing through (-5‚ -4) and parallel to the line passing through (-3‚ 2) and (6‚ 8). QUESTION 2 A manufacturer has a monthly fixed cost of $100‚000 and a production cost of $14 for each unit produced. The product sells for $12/ unit. a. What is the cost function? b. What is the revenue function? c. What is the profit function? d. Compute the profit (loss) corresponding to production levels of 12‚ 000 and 20‚ 000 units. QUESTION 3 Solve the
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Cost Reduction Techniques I. Introduction a) Why the need for cost reduction measures b) Who can implement these methods? c) Can I really make a difference? Organizing and Developing a Successful Cost Reduction Program a) What management can do about cost reductions b) Developing your cost reduction program c) Waste Prevention and its impact to the bottom line d) Operational analysis – a key to many savings e) Promoting a cost reduction program f) Communication results to all levels of management/organization
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Opportunity cost: Taken into account for economic decisions. Opportunity Cost is the “next best” or “alternative” benefit from an investment Sunk costs: Never taken into account for economic decisions. Marginal Analysis: Used for profit maximization (deciding how much to produce) where TR and TC are functions of quantity. To maximize profits we take derivative=0 P r o f it M a x im iz a t io n G r a p h For profit maximization‚ marginal revenue should be equal to marginal costs for EACH activity
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An Introduction to Strategic Cost Management (SCM) Vance Chan Associates www.vancechan.com Introduction to SCM ©1998 Vance Chan Associates. Not to be reproduced without permission. 1 The challenge Rising costs are everyone’s concern… Introduction to SCM ©1998 Vance Chan Associates. Not to be reproduced without permission. 2 The challenge In today’s economy‚ most companies must make fundamental changes to cost structure while trying to maintain growth Slower revenue
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Historical Cost Mean? A measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when it was acquired by the company. The historical-cost method is used for assets in the United States under generally accepted accounting principles (GAAP). Cost concepts and terms 1. Cost The amount of expenditure (actual or notional) incurred on or attributable to a specified article‚ product or activity is referred to as cost. 2
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Answers to Exercises Microeconomic Analysis Third Edition Hal R. Varian University of California at Berkeley W. W. Norton & Company • New York • London Copyright c 1992‚ 1984‚ 1978 by W. W. Norton & Company‚ Inc. All rights reserved Printed in the United States of America THIRD EDITION 0-393-96282-2 W. W. Norton & Company‚ Inc.‚ 500 Fifth Avenue‚ New York‚ N.Y. 10110 W. W. Norton Ltd.‚ 10 Coptic Street‚ London WC1A 1PU 234567890 ANSWERS Chapter 1. Technology 1
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CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS TRUE/FALSE 1. To perform cost-volume-profit analysis‚ a company must be able to separate costs into fixed and variable components. Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost-volume-profit (CVP) analysis 2. Cost-volume-profit analysis may be used for multi-product analysis when the proportion of different products remains constant. Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost-volume-profit
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1. Which of the following would increase the likelihood that a company would increase its debt ratio in its capital structure? a. An increase in costs incurred when filing for bankruptcy. b. An increase in the corporate tax rate. c. An increase in the personal tax rate. d. None of the statements above is correct. ANSWER: B An increase in the corporate tax rate would mean that firms would get larger tax breaks for interest payments. Therefore‚ firms have an incentive to increase interest payments
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Meaning of Cost Accounting Previously‚ cost accounting was considered to be a technique for the ascertainment of costs of products or services on the basis of historical data. In time‚ due to the competitive nature of the market‚ it was realized that ascertaining of cost is not as important as controlling costs. Cost accounting started to be considered more as a technique for cost control as compared to cost ascertainment. Due to the technological developments in all fields‚ cost reduction has
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