Increase the Output Over Which a Fixed Cost ICD is Used

This action reduces the quantity of a unique fixed cost ICD used to produce a unit of Output by increasing the units of Output. For example, a new product design, or a new process patent, are both ICDs that have virtually limitless capacity for use. These are fixed cost ICDs. You pay for them once and you can use them over a virtually unlimited amount of Output. Their ICD/O ratios are limited only by the current demand level for Output.

Acquire similar organization to spread fixed cost ICDs

The acquisition of another organization with a similar business enables the company to take certain fixed cost ICDs in the form of processes and designs and use them over a larger amount of Output.

Buy company in complementary market

No. Industry SIC Year Notes
1 1700 1997 Owens Corning will acquire Fireboard Corp., a vinyl-siding manufacturer, for $515 million, marking the 16th and largest acquisition pact during Owens Corning's 3-year shopping spree.
2 2273 1996 Within a 6 week period at the end of 1995 and early 1996, Shaw announced plans to buy the Maxim Group which owns or franchises 548 Carpet Max stores, and reported sales of about $110 million in the past fiscal year.
3 3021 2004 Nike peaked during the 1997 craze for basketball shoes and has periodically been trying to get skaters to buy its line of shoes to make up ground. It has sponsored skating events and run endless commercials but has still been unable to escape its image. "We were hurt mainly by the fact that we were the No. 1 sports company." Nike has recently bought Hurley International, a rival of Vans. Nike will use the brand to get a piece of the skate market.
4 4832 1997 Jacor also recently purchased a satellite provider, which will enable the company to more efficiently distribute its programming and, separately, a traffic information company located in Southern California that provides reports to radio and television stations.
5 5211 1998 Early 1997, Home Depot bought Maintenance Warehouse America, a private company that was the nation's top direct-mail marketer of maintenance and repair products to lodging and multifamily-lodging managers.
6 7372 2004 To stay competitive, companies are finding new ways to automate operations, reuse technology, and streamline processes. Accenture and IBM are creating precooked packages of software and services for various industries, so less customization has to be done for individual clients.
7 8082 2001 Since late 2000, Option Care has bought five pharmacies. It most recently purchased an infusion pharmacy in St. Louis – a key managed care market. Option Care owns 28 of its pharmacies.

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