ADMS 1000 Study Guide - Final Guide: Cost Leadership, Trans-Canada Air Lines, International Trade

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Paulette Burgher

Document Summary

Cost leadership: economies of scale, leaning curve economies, low-cost access to factors of production. Product differentiation: product features; perceived quality; customer service. Focus (differentiation or cost leadership): targeting a specific buyer group, a segment of the product line or a graphic market, a firm is able to compete efficiently &/ or effectively. Related products & markets: generate synergies & economies of scope. Vertical integration: backward/upstream suppliers, upward/downstream - customers. Internal development: mergers & acquisitions, strategic alliances. Private corporation: advantages of corporations, limited liability, permanency, transferability of ownership, access to capital, disadvantages of corporations, start up costs & disclosure issues, principal agency problems, double taxation, purpose of corporate governance. Causes: managerial incentives & informational asymmetry, ex: management increasing executive compensation. Shareholders --- board of directors --- corporate alliances ---- employees. This information helps you determine how much financing your business needs and helps outsiders determine whether lending you money or investing in your business is a wise use of their funds.