ADM 2313 Lecture Notes - Lecture 12: Sunk Costs
5 Jan 2018
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Document Summary
> numerous studies testify to a strategy-performance relationship, although the findings are significant more for establishing the importance of a strategy than for telling what strategies to follow under particular circumstances . > a key factor in sustaining growth and development of a business is how quickly the owner-manager can adapt and learn from the experience of dealing with his environment . > luck is the principal factor that finally distinguishes winners from near-winners---although vast differentials of skills and competence may separate contenders from non-contenders . > smes are not yet fully represented in the international economy (as large firms), but smes" involvement in international markets is increasing (hall and donchels 1998, lamb and liesch 2002). Limited resources seem to frustrate the efforts of smes to internationalise (buckley 1989). Innovation - smes are initiators of change, they innovate. Smaller firms are less committed to existing products and services because of lower sunk costs and fixed costs.
