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Pages:
1 page/≈275 words
Sources:
1 Source
Level:
APA
Subject:
Accounting, Finance, SPSS
Type:
Case Study
Language:
English (U.S.)
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MS Word
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Topic:
SPSS Case Study Question 3: Victoria Chemicals (Case Study Sample)
Instructions:
do question 3
Cannibalization in this case is when a new project reduces cash flow of an already existing one
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Case Question 3
Student's Name
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Case Question 3
The director of sales is suggesting that the company, Victoria Chemicals, shifts production capacity of polypropylene from Rotterdam to Merseyside in order to prevent customers from buying products from competitors. This way, Merseyside would cannibalize Rotterdam as production activities would shift to the former plant. This would amount to market cannibalization. Cannibalization in this case is when a new project reduces cash flow of an already existing one (Megginson, Smart & Lucey, 2008). In the case of Victoria Chemicals, the Merseyside plant would reduce cash
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