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Crescordia fits in within the Competitive Positioning matrix

Where do you think Crescordia fits in within the Competitive Positioning matrix for its business level strategy (Hint: The five strategies in this matrix are Differentiation, Cost Leadership, Focused Differentiation, Focused Cost Leadership, Integrated Differentiation/Cost Leadership)? Conduct a VRIS and SWOT analysis for Crescordia. Using this analysis to guide your decision-making, make a recommendation on whether or not Crescordia should launch a resorbables product line? Explain your reasoning and come up with a plan to negate or minimize the negative consequences that are likely to arise from your proposed recommendation.

Sample Solution

nomists suggest that when there is overall low economic growth and a subdued investment rate, wage rates become the prime suspect responsible for unemployment. At this heart of this debate is the undeniable fact that the relationship between productivity and the cost of labour is a strong factor for employers when deciding whether to take on more workers or not (Bell & Blanchflower, 2010). In a working paper published by the IMF, Blumenfeld (2012) looks at the reasons behind South Africa’s high job hemorrhage between and 2010, draws the following conclusions: there is a weak relationship between real wages and labour productivity in South Africa. In other words; real wage growth in South Africa is driven less by productivity levels and more by ‘other factors that delink it from labor market conditions.’ More so, the South African situation has been characterized by real wage growth that has outpaced labour-productivity growth. It is the manifestation of the above relationship that led to South Africa shedding an excessive amount of jobs, almost 25%, during the economic low down of 2008 to 2010. The paper concludes that amongst other factors, entry restrictions, employment protection legislation, and the collective bargaining framework all contribute to the misalignment between real wages and labour productivity (Blumenfeld 2012). Therefore, it can be inferred that the same fate falls onto young people when they are effectively priced out of the market because of labour legislation. When the cost of labour is perceived to be too high because the immediate effect is a regression in the pace of job recreation. The World Bank also supports this view noting that ‘high firing costs reduce layoffs, as well job creation in firms, making access to employment difficult for new young entrants to the job market’ (McCarthy, 2008). 7.7 The psyche of unemployment youth and discouraged job seekers When young people struggle and fail to secure employment in the early years of their potential working life; can lead to a higher probability that these job seekers may become discouraged. Most importantly, the higher the rate of youth unemployment, the higher the probability that large numbers of workers will become discouraged ultimately disengaging from the labour force altogether (Burns et al, 2010). Linked to this is the reality that the longer young people stay without employment, the more they are locked out of the opportunity of amassing human capital, a key variable in determining living standards. Taken together these two factors make long-term integration

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