Question

Ferrari believed its value arose from scarcity. Would a slow volume growth strategy to maintain that...

Ferrari believed its value arose from scarcity. Would a slow volume growth strategy to maintain that scarcity yield sufficient financial returns for investors?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Normally, the price of Ferrari cars are listed and like other cars would not be sold at a price higher that that. Even if Ferrari believes that its value arose from scarcity, adopting a slow volume growth strategy would in fact mean earning less today in the hope of earning tomorrow. If they can meet the demand and sell their cars as and when the orders come, there is a good chance they will be better off because then they just might use the earned profits to R&D better and faster cars.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Problem 7-20 Nonconstant Growth Stock Valuation Reizenstein Technologies (RT) has just developed a solar panel capable...
Problem 7-20 Nonconstant Growth Stock Valuation Reizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, RT is expected to experience a 15% annual growth rate for the next 5 years. By the end of 5 years, other firms will have developed comparable technology, and RT's growth rate will slow to 8% per year indefinitely. Stockholders require a return of 11% on RT's stock....
What Is Strategy and Why Is It Important? A creative, distinctive strategy that sets a company...
What Is Strategy and Why Is It Important? A creative, distinctive strategy that sets a company apart from rivals and provides a competitive advantage is a company’s reliable ticket to above-average profits. Illustration Capsule 1.1 discusses how Apple’s strategy led to its becoming one of the most profitable companies in the world, with revenues of more than $225 billion. It’s reputation for superior technological innovation and design capabilities has made its products and services the most popular in the world....
1. If China is going to maintain its peg with the dollar despite its trade surplus,...
1. If China is going to maintain its peg with the dollar despite its trade surplus, what must the Bank of China do if it has no Sovereign Wealth Fund? a.   Short sell dollars in exchange markets b.   Reduce its vast holdings of dollars c.   Increase its holdings of dollars d.   Raise the value of its currency to discourage export surpluses e.   Create a new currency 2. Pick the two answers to the following: What would be the immediate effect on M1 of a bank...
Review the Newell Rubbermaid case study from the Chapter 15 Reading. Then, answer the following question:...
Review the Newell Rubbermaid case study from the Chapter 15 Reading. Then, answer the following question: How do the controls Newell uses fit its strategy? 15.1 Case in Point: Newell Rubbermaid Leverages Cost Controls to Grow Newell Company grew to be a diversified manufacturer and marketer of simple household items, cookware, and hardware. In the early 1950s, Newell Company’s business consisted solely of manufactured curtain rods that were sold through hardware stores and retailers like Sears. Since the 1960s, however,...
5. Which of the following would not lead a manager to believe that an ethical concern...
5. Which of the following would not lead a manager to believe that an ethical concern exists? A. Have I done anything that coerced somebody to share this information? B. Is the contemplated technique for gathering information relevant? C. Have I done something to circumvent a system intended to secure or protect information? D. Have I misled anybody in order to gain access? 6. SWOT analysis is a framework for analyzing the internal and external environment of a company. It...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....
HORIZONTAL GROWTH AT KOLEDA PURERENT, INC. CASE SYNOPSIS The case of Koleda PureRent, Inc. illustrates how...
HORIZONTAL GROWTH AT KOLEDA PURERENT, INC. CASE SYNOPSIS The case of Koleda PureRent, Inc. illustrates how a smaller firm can achieve market power and survive through horizontal integration. Growth, however is only the beginning of a successful strategic process. It does not in sure long-term success, as there are numerous strategic challenges for this and other firms in similar circumstances. The firm has reached a size that could attract the attention of larger competitors. This new level of competition would...
2. A 7% semiannual coupon bond matures in 8 years. The bond has a face value...
2. A 7% semiannual coupon bond matures in 8 years. The bond has a face value of $1,000 and is currently trading at $1,104. Calculate the bond’s YTM. 3. Four years earlier, Janice purchased a $1,000 face value corporate bond with a 6% annual coupon, and maturing in 10 years. At the time of the purchase, it had an expected yield to maturity of 8.76%. If Janice sold the bond today for $1,088.39, what rate of return would she have...
3.   Which of the following would be LEAST LIKELY to be considered a long-run determinant of...
3.   Which of the following would be LEAST LIKELY to be considered a long-run determinant of consumption? (a) an external shock to the financial system; (b) attitudes toward thrift; (c) the availability and cost of credit; (d) asset holdings of households and businesses. 17.   When looking at the equation of exchange, we note that P times Q increased by 6%. Accordingly, M times V: (a) likely experienced an increase of 6% split between money supply growth and velocity; (b) decreased...
Repackaging a Global Brand: A Case Study Analyzing the Capital Expenditure Decision INTRODUCTION It is early...
Repackaging a Global Brand: A Case Study Analyzing the Capital Expenditure Decision INTRODUCTION It is early 2014. A leading global skincare manufacturer, Health & Beauty Co. (HBC), has been losing market share in the hand and body lotion market. While the firm still leads its competitors in market share in this segment of personal care, it seeks to stem further share erosion and, to that end, has recently developed a strategy to recover market share through rebranding, advertising, and repackaging....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT