RSM322H1 Study Guide - Final Guide: Whole-Life Cost, Activity-Based Costing, Cost Driver
Document Summary
Political: how and what degree government intervenes in market. Tax, labour law, environmental law, trade restrictions and tariffs, political stability. Economic: economic growth, interest, exchange and inflation rates. Social: cultural aspects such as health consciousness, population growth rate, age distributions, career attitudes, emphasis on safety, other social trends. Technological: r&d, automation, rate of technological change, barriers to entry. Threat of new competition: new entrants decrease profitability. Barriers of entry, brand equity, switching cost or sunk costs, capital requirements, customer loyalty, industry profitability. Threat of substitute products or services: existence of alternative products cause customers to switch. Buyer propensity to substitutes, switching cost, relative price of subs, perceived level of differentiation, number of substitutes and ease of. Bargaining power of customers (buyers): ability of customers to put firm under pressure. Buyer to firm ratio, degree of dependency, bargaining leverage, buyer volume and switching cost, availability of subs. Bargaining power of suppliers: ability of suppliers to put firm under pressure.
