Exercise: Investment and Competitiveness Imagine a multinacional company HealthyStyle that produces BIO food products. The company...
Exercise: Investment and Competitiveness
Imagine a multinacional company HealthyStyle that produces BIO food products. The company has just entered the EU market.
Explain how this company can maintain its competitiveness in the EU market. Please be concise and elaborate on at least two potential ways to maintain competitiveness.
Explain how this company can achieve the economy of scale. Please be concise and elaborate on at least three potential ways to achieve the economy of scale.
Homework Answers
Competitiveness in EU Market can be leveraged by extensive distribution, vertical integration, consolidation in markets, higher accessibility and affordability, better brand awareness campaign, referrral buying models, etc.
Economies of scale is achieved by making cost to benefits analysis and ramping up production to level that marginal cost equals marginal profits and thus profit maximizing takes place. Capacity utilisation and inventory planning is best way to achieve economies of scale.
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Exercise: Investment and Competitiveness
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