INTG BUS POLICY/STRATEGY - Week 5
_______ precisely indicates how much of a firm's sales is converted into profits
return on revenue
Return on risk capital primarily includes
stock price appreciation plus dividends received over a specific period
A company's total asset base consists of its current assets plus plant, property, and equipment (PPE).
FALSE
A competitive advantage goes to the firm that maximizes the difference between the cost of producing a good and the retail price that consumer pay
FALSE
A firm will always see its stock price appreciate when it demonstrates measurable growth
FALSE
A manager's only responsibility is to monitor and assess the performance of his or her firm
FALSE
Once a firm chooses a business model, it must stick with it for the life of the firm
FALSE
Which of the following expressions accurately describes markets cap?
It is the product of the number of outstanding shares and share price
Which of the following is a disadvantage of the balanced-scoregard approach?
It provides limited guidance about which metrics to choose
_____ are best described as the value of the best forgone alternative use of the resource employed
Opportunity costs
A high percentage of R&D/Revenue ration indicates a(n)
Strong four on innovation to improve current products and services
Which of the following is an advantage of a triple-bottom-line approach?
The approach takes an integrative and holistic view in assessing a company's performance
The balanced-scorecard can accommodate
bother short-and long-term performance metrics
In an economic context, strategy for producers is primarily about
capturing the economic value created as much as possible
Economic value creation is best expressed as
consumer surplus plus firm profit
Which of the following competitively important assets is typically exclude from a firm's balance sheet?
customer experience
____ is best described as the difference between a buyer's willingness to pay for a product or service and a firm's total cost to produce it
economic value created
Competitive advantage goes to the firm that achieves the
largest economic value created
The ratio COGS/Revenue indicates how efficiently a company can
produce a good
From an investors' or shareholders' perspective, the measure of competitive advantage that matters most is the
return on risk capital
____ are the legal owners of public companies
shareholders
During the process of formulating an effective business model, a firm's managers should first
transform their strategy of how to compete into a blueprint of actions and initiatives
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
A defining characteristic of the pay-as-you-go business model is that the
users pay for only the services they consume
______ denotes the dollar amount a consumer would attach to a good or service
value