Strategic Management- Chapter 5

What is true of accounting data?

Accounting data are historical and thus backward-looking.

How does a sustainable strategy typically help a firm?

It helps the firm achieve positive results along the social and ecological dimensions.

_______ is the benefit that is missed or given up when an investor, individual or business chooses one alternative over another.

Opportunity cost

________ are the legal owners of public companies.

Shareholders

What framework used to measure competitive advantage relies on both an internal and external view of the firm?

The balanced-scorecard model

The market capitalization of a public company is $5 billion. Each share of the company is traded at $200. What do you infer from this financial data?

The firm's number of outstanding shares is 25 million.

A firm incurs $400 to manufacture a computer. In the market, customers are willing to pay a maximum of $600 for the computer priced at $500. The difference of $200 ($600 minus $400) is the __________.

economic value created

The ratio COGs/ Revenue indicates how efficiently a company can ______.

produce a good

The type of assets that are the primary focus of accounting data but are no longer most important to competitive advantage are ________.

tangible

A defining characteristic of the subscription-based business model is that the ______.

user pays for access to a product or service whether he or she uses it during the payment term or not