Compose a 2000 words assignment on fiat: intangible specialization and product-mix optimization. Needs to be plagiarism free!

Compose a 2000 words assignment on fiat: intangible specialization and product-mix optimization. Needs to be plagiarism free! Intangible specialization can be simply defined as the specialization of a company in a certain area due to some intangible factors mainly brought about by the routinized activities of the company in performing its different operations relating to the production of the main product the company produces. The intangible factors include routinized and path-dependent decision-making routines that help in the regulation of the process and product design and renewal of the product (Maielli, 2005, p. 250). In addition, intangible specialization is mainly concerned with the internal routines and the accumulation of intangible capital in the designing and manufacturing of certain products, making the company efficient in the production of such products, as well as other products.

Intangible specialization may restrict the company in a certain field and hinder its attempt to change the area of its operation. It reduces the output mix flexibility of the company even if the company has technical flexibility in its production technology (Maielli, 2005, p. 249). In addition, intangible specialization usually poses great risks to the change of a company especially if the company is not well aware or equipped to deal with intangible specialization. Moreover, efforts by the company to shift into other areas are usually faced with diverse problems and are in most cases not successful.

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The company should, therefore, devise means of reaping maximum income from the area of specialization, as attempts to shift into other areas will be difficult in most cases. Knowledge of the intangible specialization also helps the company in the formulation and application of strategies that will aid the shift to other areas in the supply chain.

Intangible specialization is categorized into the evolution theory of economic change.&nbsp.&nbsp.

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