Sus Bus Final Exam
1. True or false: Trader Joe's extensive use of private label brands provide it a cost advantage over competitors which rely on national brands.
true
1. True or false: Trader Joe's unique store atmosphere would be difficult for competitors to duplicate as it is achieved through a unique integration of primary and support aspects of the value chain.
true
1. True or false: While the forecast of Cake's automation level has an acceptably high R2 level, the forecasted round 8 automation level of 14 should not be trusted as this fails the reality test.
true
1. True or false: If all of a company's products are profitable the company has no situational priorities.
false
1. Explain the concept of "fit" in terms of a company's value chain? What is it? Why is it important? What course concepts does fit bring together in the value chain?
- "FIT" - value chain elements that can create the product / service consistent with the firm's strategy
1. What are the two purposes of the value chain model?
- 1. A way to map where resources and capabilities are housed - 2. Assess if all parts of the company are aligned with intended way of creating advantage (cost or benefit) - General rule: the greater the number of linkages and interconnections between resources / capabilities within a value chain, the more likely a competitive advantage is durable
1. What are the six rules for evaluating trendline forecasts?
- 1. Comparison to reality o Value predicted is reasonable, "realm of possibility" test - 2. To have confidence in the trendline; R^2 must be sufficient o R^2 value = a number between 0 & 1; the variance in the data explained by the equation o Want R^2 at or near 1.0; > 0.9 = pretty confident; < 0.6 = very wary (run!) o But high R^2 does not guarantee rule #1 - 3. Better to assess individual causes than result of multiple causes - 4. More cases/data points = higher confidence in prediction o R^2 greatly influenced by the number of observations (more = stronger results) - 5. The more periods you are forecasting out the less reliable a forecast will be - 6. The future may not follow patterns of the past
1. What are the three main profit "problems"?
- 1. Unit aspects (acceptable contribution margin but low profit) - actual vs potential demand aspects, want actual demand > potential demand - 2. WTA / Costs aspects (cost advantage) - low contribution margin o Cost problem; high labor and/or material costs o Low contribution margin: cost problem, high labor and/or material costs, price problem raise price o acceptable contribution margin, but low net margin: period costs too high relative to units sold sell more units or lower period spending - 3. WTP / demand aspects (benefit advantage) - low customer survey score o WTP is low relative to price, product is low on one or more of the 4 buying criteria increase relative appeal on one or more of these o Low contribution but good customer survey § Price problem raise price § Cost is too high relative to WTP
1. Why is firm interdependence more relevant in oligopoly (market is shared by a small number of firms) than in highly competitive markets? In a monopoly versus an oligopoly?
- Because in competitive markets firms do not consider other firm's decisions and same with a monopoly - Rivals firms decision not responsive to firm action - Dominant strategy: o A situation where one player has a superior tactic regardless of how the other players act - OLIGOPOLY: o A few firms produce most market output o Products may or may not be differentiated o Effective entry barriers protect firm profitability o Firm independence requires strategic thinking - MONOPOLY & INTENSE COMPETITION o Firms do not consider other firm's decisions § Rivals firms decisions not responsive to firm action
1. Why must one consider increases in the attractiveness of a competitor's product when forecasting demand?
- Because their CSS store will increase which will increase their demand of their product
1. How does excess inventory reduce profits?
- Because then the company wasted money on making the product and now they aren't getting the money back because no one is buying the products
1. Why does context - cost versus benefit advantage strategy - matter for identifying situational priorities?
- Because you are looking to fix different things
1. Describe benign and hostile environments.
- Benign: o Characterized by: § Market demand exceeds market supply § Generally high gross profit margins § Low competitive intensity - meaning no one competitor controls a high proportion of the market § Strong customer loyalty § A tolerance for occasional management miscues - Hostile: o Characterized by: § Slow growth § Continuous price wars § High competitive intensity - meaning that one or a few competitors control a substantial portion of the market § Focus on cost containment by competitors
1. What does a "best response" means in the context of strategic thinking?
- Best response: o The best choice given the choice of the rival
1. How can an organization prioritize stakeholders?
- By closely engaging with active management and partnership
1. What is a stakeholder? What is the stakeholder perspective?
- Firms interconnected with many different parties with actual or perceived "stake" in the firm - Individuals that contribute to its wealth-creating capacity and activities - Stakeholder perspective: considers the interests of all affected parties in its decisions
1. Why is it important to be able to critically evaluate forecasts and trendlines?
- Forecasting is important because it uses prior pattern of observation which helps you predict future values - Trendlines are important because it helps you estimate future values based on prior observations
1. What are some alternative (i.e., not price and cost) metrics for identifying a firm's business-level strategy?
- Gross profit margin, operating margin, net margin, SGA as percent of sales, ROA & ROE, avg sales per sq. ft
1. Explain what the Balanced Scorecard is and its purpose.
- It breaks down your current performance and your future performance into.. o Financial o Internal business process o Customer o Learning and growth
1. Describe a Nash Equilibrium. Why is the Nash Equilibrium considered an equilibrium when a firm is not necessarily able to achieve the highest profits?
- Nash equilibrium: o Each firm does the best it can given rivals actions, there is no regret after the fact
1. How do you assess if a Nash equilibrium exists in specific cells and overall in a decision matrix?
- Neither player has regrets, given the choice of their rival
1. Must an entity actually be formally associated with a firm to qualify as a stakeholder?
- No you can involuntarily be a stakeholder
1. Explain the sequential approach to stakeholder satisfaction.
- Once you become more profitable you receive more benefits, so you have to accomplish something before getting better treatment
1. Why are stakeholders important to an organization?
- Place demands on the organization for direction, actions, expenditures, and organizational focus o May be internal or external to the organization o Voluntary/ involuntary stakeholders § Voluntary - have direct, formal association with the firm; seek mutual benefit § Involuntary - indirect
1. Be able to identify players, choices, and payoffs in a decision matrix
- Players: o Two firms competing (ex: Boeing and Airbus) § Assume you work for boeing - Choices: o Each from has to decide factory capacity to build aircraft o Each firm chooses their capacity simultaneously and can't coordinate - Payoffs: o Must understand desirable vs undesirable o Want high? Or low? Ex: prison vs profits o Depends on the choices of your firm and you rival firm - *Assume both b=firms know about their rivals choice sets and expected payoffs
1. Able to define and can identify firms fitting the prospector, defender, analyzer, and reactor profiles.
- Prospector: a company that tends to view the industry from their own perspective and that of the customer rather, & less concerned with the actions of competition. They are usually leaders of change in the industry. - Defender: a company that is intensive (focused on one area). They usually focus on a limited number of key criteria, analyze their costs, and rigorously defend their competitive position against all competitors. - Analyzer: a company that combines both prospector and defender behaviors. Parts of the company behave like a defender and parts behave like a prospector. Unpredictable nature makes it dangerous. - Reactor: a company that reacts (often slowly) to conditions in the competitive environment. This is an unstable form of organization. Waits & reacts slower to developments.
1. Does excess inventory have a more directly negative effect on ROE or ROA?
- ROA because the higher your assets are the less net income you have o ROA = Net income / total assets
1. What are the three primary stakeholder groups?
- Resources base: o Employees, customers & users, investors: Shareholders & lenders - Industry Structure: o Regulatory Authorities, Unions, Joint venture partners & alliances, Supply chain Associates - Social Political Arena: o Local communities & citizens, Private organizations, governments
1. Understands scenarios and their value in planning strategic and tactical actions.
- Scenario analysis: a technique allowing organizations to consider dramatic shifts in their business model. The organization maps out a set of actions that it can start to take if warning signs begin to appear along the path of a particular scenario - Tactics: dealing with short-term competitive moves and countermoves, as opposed to long-term direction, investments, & performance
1. What is a situational priority?
- Situational priority: o Those factors that most directly challenge or limit the organizations ability to be a sustainable organization in the near and/or long term
1. Describe how and why industry and company trajectories are helpful for evaluating an industry environment.
- Strategy maps over time reveal tendencies - It helps anticipate competitor actions - Technological developments - Helps track evolution of customer development
How are concentration measures applied to assess buyer and supplier power?
- The higher the concentration the harder it is to enter the market - When determining if a segment is concerning, it is concerning if it is not very competitive o If a business does not face competition is has little incentive to lower prices or improve its products
1. What is the benefit of maximizing resource and capability interconnections?
- The more likely a competitive advantage is durable
1. What is unique about trend analysis compared to the 3-C's of business analysis? What does it add to the other forms of analysis?
- The three C's (static) o Explains the Context o Presents Comparisons o To facilitate Causal understanding - It adds the fourth C: just around the corner / forthcoming / approaching o Looks at the trend in values as they change over time o Forecasting
1. How does a firm's value chain equate to sustainable competitive advantage?
- The value chain helps decision makers understand which activities are most valuable and which ones could be optimized to give a business a competitive advantage
1. How do you distinguish between a broad and focused strategy? Which is Trader Joe's using?
- They have a narrow strategy because unlike most supermarkets you can't do all of your shopping at trader joes.
1. What tradeoffs has Trader Joe's made compared to a typical grocery store? Were these import to J's success?
- They pay more for labor to keep great people, but raises costs - Limited selection of goods, shoppers only go here for specialty items while also going to other stores
1. How is the concept of organizational capabilities essential to applying the value chain model?
- Value chains help increase a business's efficiency so the business can deliver the most value for the least possible cost
What are the substitutes for the movie exhibition industry? What effect are they having on the industry?
- Watching at home, less people are going to the movie theaters so they are losing money
1. How can you use product sales and profit data from annual report to identify situational priorities?
- Whichever product is producing small portion of profits
1. Is company-level profit the sum of product-level profits?
- Yes, company-level profit is the sum of product-level profits
1. Utilize organizational life cycle stages and the kinds of problems and resources issues that businesses experience in each to proactively recommend value creation activities.
- You compare conception, commercialization, growth and maturity with the stage, dominant problems, functions important to address problems, resources development challenge, important resources. - The organizational life stages are... o Conception - innovation, strategy, finance o Commercialization - production hiring, and organizational issue o Growth - scaling up, marketing, culture, pace of change & chaos o Maturity - profitability, internal controls
1. Explain the stages of an industry life cycle and their impact on business strategy and value creation.
- You compare type of demand, competition, strategy, value creation, value chain focus with introduction, growth, maturity, decline, renewal - The stage of an industry life are... o Introduction o Growth o Maturity o Decline o Renewal § Redefine industry boundaries § Disaggregate bocks of value chain activity § Redefine value § Shift to complements
What are support activities in the value chain
- aide the value creation by primary activities - Procurement - activities completed to purchase the inputs needed to produce a firms products. Purchased inputs include items fully consumes during the manufacture of products. Ex: raw materials & supplies, as well as fixed assets-machinery, laboratory equipment, office equipment & buildings. - Technology Development - activities completed to improve a forms product and the processes used to manufacture it. Technological development takes many forms, such as process equipment, basic research, and product design & servicing procedures. - Human resource management - activities involved with recruiting, hiring, developing, and compensating all personnel - General administration / firm infrastructure - includes activities such as general management, planning, finance, accounting, legal support, & government relations that are required to support the work of the entire value chain.
1. What are the primary value chain elements?
- create value directly - Inbound logistics - activities such as materials handling, warehousing, and inventory control, used to receive, store & disseminate inputs to a product - Operations - activities necessary to convert the inputs provided by inbound logistics into final product form, machining, packaging, assembly, and equipment maintenance are examples of operations activities - Outbound logistics - activities involved with collecting, storing, and physically distributing the final product to customers. Ex: finished goods, warehousing, materials handling, and order processing - Market and sales - activities completed to provide means through which customers can purchase products and to induce them to do so. To effectively market and sell products, firms advertise and select appropriate distribution channels Service - activities designed to enhance or maintain a products value. Firms engage in a range of service-related activities, including installation, repair, training, & adjestment
What effect do substitutes have on an industry?
- decrease in sales for a product if customers are switching to other cheaper alternatives if the price rises - a product with several substitutes is hard to price - in a market where there are fewer substitutes there is a higher profitability of earning greater profits
what are subsitiutes?
- firms in different industries - provide comparable utility - considered as a choice by the buyer - serves as a cap on WTP Ex: southwest substitutes include amtrak, megabus and enterprise rent-a-car
what are rivals?
- firms in the same industry - provide comparable utility - compete for the same customers ex: southwest rivals are other airlines
1. How do you identify a situational priority within a multi-product or multi-segment company?
- profitability The product that's making the least amount of profit (ex: in team Andrews)
(use product CSS table) You have yet to make any changes which would change the CSS score of your products. No new products are entering the segment in the coming round. 1. Demand in the segment for round 5 was 9,500 units and is increasing by 500 units per year. You have 200 units of product A2 in inventory. You hope to have zero inventory of A2 at the end of round 6 yet maximize sales. How many units of A2 should you produce in round 6?
1362
(use product CSS table) You have yet to make any changes which would change the CSS score of your products. No new products are entering the segment in the coming round. 1. Absent any other changes, what should you expect product A1's CSS score to be for the coming round?
15
1. (use product CSS table) You have yet to make any changes which would change the CSS score of your products. No new products are entering the segment in the coming round. What is the most appropriate initial estimate of the market share for product A1 in this segment for round 6?
9.4%
evaluation of HHI
< 1000 very competitive industry 1001 - 1800 moderately concentrated > 1800 highly concentrated
evaluation of CR4:
< 40 very competitive industry 40 - 70 moderately concentrated > 70 highly concentrated
(use Yum Brands screenshot) 1. Which of Yum! Brands' restaurant would you identify as the situational priority? A. KFC B. Pizza Hut C. Taco Bell D. All of the above E. None of the above
A
1. A company has an acceptably high contribution margin percentage, yet it is producing only a small profit in dollars. Which of the following is the best way of increasing the product's profit? A. Increase the number of units sold. B. Increase price. C. Decrease material cost. D. Decrease labor cost. E. Any of the above will increase
A
1. A firm has a substantial amount of inventory of a product. Which of the following would be the most appropriate way to set production for the coming year? A. (Potential market share based on CSS score X The size of the market for the coming year) - Existing inventory B. (Potential market share based on last year's market share X The size of the market for the coming year) - Existing inventory consumer surplus is lower C. (Potential market share based on CSS score X The size of the market for the coming year) + Existing inventory D. (Potential market share based on CSS score X The current size of the market) - Existing inventory E. Any of the above will yield the same production level
A
1. Which of Trader Joe's value chain support element would we expect to be different from a typical grocer due to their extensive use of private label products? A. Procurement B. Marketing and sales C. Operations D. All of the above
A
1. Which of the following are potential solutions to the causes of people not going to the movies? A. Increase the time between the theater's screen, sound, and seating versus that available at home B. Increase theater interruptions C. Decrease the time between a film's theatrical release and its' availability on DVD D. Increase the number of advertisements E. Both A & C are correct
A
1. Which of the following forecasts of Foundation data should you have the least confidence in? A. A forecast of CSS scores. B. A forecast of automation levels. C. A forecast of material cost due to MTBF. D. A forecast of price. E. You can have equal confidence in all of the above.
A
1. Which of the following is not one of the organizational life cycle stages? A. Commencing R&D B. Conception C. Commercialization D. Growth E. Maturity
A
1. Which of the following is not one of the primary activities in the value chain? A. training B. inputs C. operations D. marketing & sales
A
1. ________ analysis provides "a systematic way of examining all the activities a firm performs and how they interact..." A. Value chain B. VRI(O/ST) C. Structure-conduct-performance model D. Industry structural E. All of the above
A
Firm Market Share Firm A 20% Firm B 10% Firm C 5% Firm D 4% Firm E 3% Firm F 2% 1. Based on the HHI, this industry would be assessed as being: A. very competitive industry B. moderately concentrated C. highly concentrated D. None of the above
A
Firm Market Share Firm A 20% Firm B 10% Firm C 5% Firm D 4% Firm E 3% Firm F 2% 1. In this industry, the four firm industry concentration ratio is _______; the HHI is ______. A. 39; 541 B. 39; 554 C. 44; 541 D. 44, 554 E. The correct answer is not listed.
A
(look at automation level image) 1. Using the above chart of the price data and the trend lines, a member of your Andrews team has presented several conclusions. Based on your interpretation of the data and your knowledge of the simulation, which of the conclusions should you be most confident in? A. We can expect the Cake's automation level to be nearly 14 by round 8. B. We can expect the average automation level in the segment to be above 6 by round 8. C. We can expect Daze's automation level to stay below 4 through round 8. D. We can expect Eat to have no automation level after round 3. E. We should be equally confident in all of the above conclusions.
B
1. A dominant strategy is best described as existing when: A. A firm does not need to consider what a competitor will do. B. A firm's action will be consistent regardless of a competitor's action. C. A firm has a monopoly. D. All of the answers are equally correct.
B
1. Compare two firms: XYZ Corp. has a capability which is based on research and development as well as operations. The ABC Enterprises has a capability which is based on research and development, operations, inbound logistics, and after sales service. All other things being equal, which firm's capability will be more durable? A. XYZ Corp. B. ABC Enterprises. C. Both will be equally durable.
B
1. Primary activities are: A. the activities most likely to be imitated by competitors. B. involved in a product's physical creation, its distribution, and its service after the sale. C. the activities involved when companies are initially established. D. the activities that the top management team most values.
B
1. Southwest Airlines decision to avoid selling tickets through travel agents and instead sell them directly to customers was a significant departure from the way most airlines operated. Which element of Southwest's value chain was most effected? A. Human recourse management. B. Marketing and sales. C. Operations. D. Inbound logistics. E. Outbound logistics.
B
1. Under the VRI(O/ST) framework, which of the following provides Trader Joe's with the strongest defense against imitation by existing grocers? A. Offering low prices B. Having a unique store atmosphere and culture C. Offering private label products D. None of the above
B
1. Which of the following suggests a troubled movie exhibition industry? A. Increased box office revenues. B. Declining attendance trend. C. Answers A and B in combination suggest a troubled industry. D. Answers A and B each individually suggest a troubled industry. E. Neither answers a nor b suggest a troubled industry.
B
(look at automation level image) 1. The data presented in the chart above is best considered as what type of analysis? A. Static analysis B. Comparison analysis C. Trend / Forecast analysis D. Causal analysis E. None of the above
C
1. A colleague has prepared several forecasts of the Foundation simulation using trendlines in Excel. All things being equal, which should you put the least confidence in? A. A forecast which predicts round 5 prices using price data from rounds 0, 1, and 2. B. A forecast which predicts round 5 prices using price data from rounds 0, 1, 2 and 3. C. A forecast which predicts round 8 prices using price data from rounds 0, 1, and 2. D. A forecast which predicts round 8 prices using price data from rounds 0, 1, 2 and 3. You should have equal confident in all of the above forecasts.
C
1. A firm in the Foundation simulation is highly profitable, yet their ROA is lower than other firms. Which of the following would best increase ROA without reducing sales? A. Issue long-term debt to increase the cash balance B. Issue stock to raise the cash balance C. Ensure that few units of inventory remain D. Reduce accounts receivable terms from 60 days to 15 days
C
1. A team in the simulation has identified a situational priority of a low contribution margin for their product in the low tech segment. Their analysis indicates the cause of this is high material costs. What actions would be directly relevant for addressing this? A. Increase automation B. Avoid plant utilization above 100% C. Lower MTBF D. Raise price E. Both A and B.
C
1. Complete the following: For movie exhibitors, the falling price of home theaters ___________ the likelihood theater goers will defect to watching movies at home which _______the profitability of the movie exhibition industry. A. decreases; decreases. B. decreases; increases. C. increases; decreases. D. increases; increases. E. none of the above are accurate.
C
1. In contrast to rivalry, the threat of substitutes: A. Is unrelated to profitability. B. Has a very minimal influence on a firm's profitability. C. Involves firms and products from another industry. D. Creates an opportunity for exhibitors to disintermediate the studios. E. All of the above are correct.
C
1. Which conclusion regarding Trader Joe's business level strategy would be most accurate? A. Because Trader Joe's prices are lower, they are best described as using a cost strategy. B. Because Trader Joe's atmosphere increases willingness to pay, they are best described as using a differentiation strategy. C. Because Trader Joe's costs are lower, they are best described as using a cost strategy. D. Because Trader Joe's prices are lower and the store atmosphere increases willingness to pay, they are best described as using a differentiation strategy.
C
1. Which type of competitor is the most unpredictable and, therefore, the most dangerous from the standpoint of competitive dynamics? A. Prospector B. Defender C. Analyzer D. Reactor
C
1. Why is Dollar Shave Club such a threat to Gillette's value chain? A. Dollar Shave Clubs cost advantage strategy undercuts Gillette's cost advantage. B. Dollar Shave Clubs benefit advantage strategy undercuts Gillette's cost advantage. C. Dollar Shave Clubs cost advantage strategy makes Gillette's substantial investments in R&D less valuable. D. Dollar Shave Clubs cost advantage strategy makes Gillette's substantial investments in R&D less rare. E. All of the above are equally viable.
C
What are industry concentration ratio (CR4) and HHI? How are they calculated? Interpreted?
CR4: sum of the market share of the 4 largest companies o The higher the concentration ratio, the more concentrated the industry is o Expresses the percentage of the market that is controlled by the top 4 companies o The more highly concentrated the market is the less competitive it is HHI: = S1^2 + S2^2 + S3^2 + S4^2 o S = market share (see day 16 post up for example) o Use only the top 4 firms!!!!
1. A competitor consistently launches products only after other company's similar products have proven successful. It has never taken action which would be considered as a first mover. This company is best described as a(n): A. Prospector B. Defender C. Analyzer D. Reactor
D
1. A pharmaceutical company has developed a new drug. The manufacture of the drug requires that the raw ingredients which go into it be treated in unique and specific ways before they arrive at the manufacturing plant. The company's research scientists worked with suppliers to develop proprietary ways to extract and ship these ingredients. Once at the plant, the company's standard manufacturing operations are used and the drug is shipped and sold through standard distribution channels. Which support aspects of the value chain is most responsible for creating a competitive advantage? A. Inbound logistics. B. Operations. C. Outbound logistics. D. Technology development. E. General administration.
D
1. A team in the simulation reports they are using a benefit advantage strategy. They identify a strategic priority as low profitability for their sole product due to high costs. The product sells only in the high tech segment. The team's analysis reveals: (1) their material costs are higher than average due to their products size and performance, (2) material costs are also higher than average due to higher than average MTBF levels, (3) high R&D expenses due to yearly product repositioning, and (4) labor costs are high due to a lower than average automation level. Plant utilization for the product is the same as competing products. Which of the following actions to address the strategic priority would be most consistent with the team's strategy? A. Positioning the product to lower material costs B. Lower MTBF to 1,000 units below the expected range C. Reduce R&D repositioning to once every two years instead of yearly D. Increase automation to the industry average E. All of the above are equally consistent with the firm's strategy.
D
1. Boeing and Airbus each face two potential choices: Expand, Do not expand. There are payoffs associated with the four potential outcomes. Which of the following is an example of a Nash Equilibrium? A. Given Airbus chooses to expand, Boeing's best response is to not expand; Given Boeing chooses to not expand; Airbus' best response is to not expand. B. Given Airbus chooses to not expand, Boeing's best response is to not expand; Given Boeing chooses to not expand; Airbus' best response is to expand. C. Given Airbus chooses to expand, Boeing's best response is to expand; Given Boeing chooses to expand; Airbus' best response is to not expand. D. Given Airbus chooses to expand, Boeing's best response is to not expand; Given Boeing chooses to not expand; Airbus' best response is to expand. E. All of the above
D
1. Which of the following are reasons why exhibitors have been unsuccessful at increasing the profitability of box office admissions? A. Studios are more concentrated than exhibitors and can extract high rents from exhibitors for their differentiated content. B. Exhibitors are dependent on studios as they show virtually nothing other than content produced by the major studios. C. Studios have a credible threat of disintermediating exhibitors, distributing movies directly to viewers on their home theaters. D. All of the above. E. None of the above.
D
1. Which of the following is an appropriate use for the value chain tool? A. A way to map where resources and capabilities are housed B. Assess if all parts of the company are aligned with intended way of creating advantage (cost or benefit) C. Assess the overall fit of a company's activities with its strategy D. All of the above are appropriate uses E. None of the above are appropriate uses
D
1. Which of the following is not a characteristic of an oligopolistic industry structure? A. A few firms produce most of the market output B. Firms are able to set price C. Products may or may not be differentiated D. Economic profits are lower than intensely competitive industries E. Firms do not need to consider the actions of rivals
D
1. Which of the following provide evidence that Trader Joe's is using a cost strategy? A. Locations in low traffic strip malls B. Small parking lots C. High sales volume per store D. All of those listed
D
1. Which of the following regarding movie exhibitors seeking to create a benefit advantage based on the theater experience is accurate? A. There is no willingness-to-pay (WTP) created by initiatives to increase screen quality B. There is no WTP created by initiatives to increase sound quality in theaters C. The WTP for unique theater experiences, such as 3D, is guaranteed D. The exhibitor must be sure that the increase in WTP for unique theater experiences exceeds the added costs for those experiences All of the above
D
1. What criteria is identifying the situational priority for this firm based on? A. The restaurant with the highest expenses in dollars. B. The restaurant with the highest expenses as % of sales. C. The restaurant with the lowest profit in dollars ($). D. The restaurant with the lowest profit % of company total profits. E. The restaurant with the disproportionately low share of company profits relative to its share of revenues.
E
1. True or false: Each of the following are techniques for anticipating competitor actions: assessing the industry environment, performing trend analysis, identifying firm behavioral patterns, and scenario analysis.
True
1. What types of questions can trend analysis and forecasts answer?
What the future values will be
1. Is the following statement true or false? Only an entity both materially and voluntarily connected to an organization qualifies as a stakeholder.
false
1. Are unit, cost, and price issues fully independent or potentially interrelated?
interrelated
What is the supplier concentration for the movie exhibition industry? What effect is it having?
it is highly competitive
What is the priority matrix?
look at notes stakeholder power with stakeholder interest
1. Does Trader Joe's have a sustainable competitive advantage? How can you assess this? Hint: the VRI(O/ST) framework.
o Smaller stores o Off-beat locations o Low technology, none at all o No advertisements or coupons o Unique products, use private label so they're lower costs o Use frozen meats and produce so there is less waste o small parking lots - Trader joes seems to have a temporary advantage, no firm has got it down like TJ's does - All rivals are seeking to copy TJ's - V: valuable? Their people, products and cost structure are all valuable - R: rare? Their people and approach to HR are valuable, products & cost structure maybe are - I: in-imitable? (impossible to copy) their people & HR approach seem to be, products & cost structure are not - O: organization? All are o Their people & approach to HR = sustainable competitive advantage o Their products = temporary competitive advantage o Their cost structure = temporary competitive advantage
how to determine if a company has a dual advantage?
when total cost is below and price is above.