Volatile Commodity Inputs
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Volatile commodity prices increase the risk to the company, since a sudden change in commodity prices can hurt profits and increase the chances of bankruptcy. It also makes long-term forecast more difficult and long-term investments to meet demand more difficult.
If a company has to purchase volatile commodity inputs, those inputs could quickly change in price, which would affect a company's profit margins. …
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SWOT Threat: Volatile Commodity Inputs
Volatile commodity prices increase the risk to the company, since a sudden change in commodity prices can hurt profits and increase the chances of bankruptcy. It also makes long-term forecast more difficult and long-term investments to meet demand more difficult.
If a company has to purchase volatile commodity inputs, those inputs could quickly change in price, which would affect a company's profit margins.
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