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hi tutor
i have registered for this exam and i am also doing p2, i have not started revising for this exam, though i have all my notes ready. can you give me advice of what to do?
thank you
Look at questions and learn from their answers. Use questions and answers to go to the notes for more information as necessary.
Thanks for your advice, today is my first day looking at my notes and pass papers. I think if i sit down to read the notes, i will probably use up all my time. So Im just going to understand each cases in the pass paper and try to remember the solutions.
Problems with DEC 2012: question 1:
1. looking at dec 2012, POTS. the answers. states that the ” high market share and presence meaning that it should be able to maintain unit costs below that of its competitors.”in the case study it does not mention anything about the costs. or is it we just assume that there is economic of scale? due to the fact that they hav been in the market for many years. is it own assumptions to be made in here?
1b. what does paradigm mean.
For encos calcs how do you work out the market share 15.71% growth in the four years? to work out the market share: it is company/market turnover. how would we find out the relative market share? in order to determine whether it is cash cow, star etc.
For steeltown- it states in the solution: ” it could be argued that steeltown IT enjoys a very high market share”. how do we know this? also what does syrengies mean?
2.
1 High market share should allow economies of scale (not guaranteed, but usually hoped for).
2 Paradigm: A set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them, especially in an intellectual discipline. (Easy to find in a dictionary)
3 81/70 = 1.157, ie a 15.7% growth rate.
4 21/81 = .259, or 25.9% for market share in 2011
5 Relative market share = your market share over the highest market share.
6 “Steeltown City Council is the second largest city council in the country.” so its IT now outsourced might have a high market share.
7 Synergy: the interaction or cooperation of two or more organizations to produce a combined effect greater than the sum of their separate effects. (Easy to find in a dictionary). Eg when one company takes over another they often combine some departments, reducing staff, to lower costs. Hence the combined profit would be more than the sum of the individual profits.
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