BUS/475: Integrated Business Topics - Week 3

When managers analyze a wide variety of internal and external performance metrics in order to set financial and strategic goals, they often turn to a framework known as ______.

the balanced scorecard

When a company offers video-game consoles at a steep discount, but charges customers high fees for games, they are operating on a ______ business model.

razor—razor-blade

Which of the following dimensions make up the triple bottom line? (Check all that apply.)

economic social ecological

Which of the following statements is best illustrated by the decades-long business rivalry between the technology giants Apple and Microsoft?

A firm's competitive advantage is transitory.

Achieving competitive advantage means maximizing the difference between which of the following? (Check the two that apply.)

Consumers' willingness to pay Cost to produce the good or service

True or false: The best measure of competitive advantage can be found in the performance of specific departments.

False

Which statements about creating and implementing an effective business model are true?

Firms must implement their competitive strategy blueprint through processes, procedures, culture, and structure. Firms must transform their competitive strategy into a blueprint of initiatives and actions that support their goals.

A company's total return to shareholders consists of which of the following? (Check all that apply.)

Stock price appreciation Dividends received

Which of the following correctly describe the information used for comparing the performance of public companies based on accounting profitability? (Check all that apply.)

The information is filed in a 10-K report. The information is derived from such data as income statements and balance sheets. The relative performance is evaluated using standardized financial metrics.

Which of the following statements is true about a firm's stock price?

The price determines in part the stock's market valuation.

Which of the following is true about shareholders of a public company?

They can be individuals or organizations.

According to the efficient-market hypothesis, information about which of the following is embedded in a stock price? (Check all that apply.)

a firm's past expectations of the firm's future performance a firm's current state

Netflix had a successful business model based on a large library of streaming content but then achieved even more success by also producing and distributing original content. This is an example of the potential value of ______.

business model innovation

When a firm goes bankrupt, shareholders ______.

cannot recover their risk capital

Economic value created is the ______ the cost to produce a product/service and the amount the buyer is willing to pay for it.

difference between

The difference between the cost of producing a product and the price consumers are willing to pay for that product is known as ______.

economic value created

The balanced scorecard approach helps managers balance ______ goals.

financial and strategic

For a product that has a large economic value, a firm can choose to charge the same price as competitors in order to ___.

gain market share

Which of the following would be labeled variable costs by a computer manufacturer? (Check all that apply.)

hard drives display screens

Which of the following are standard performance dimensions for a company? (Check all that apply.)

how much shareholder value a firm creates how much economic value a firm generates a firm's accounting profitability

Fixed costs are ______ consumer demand.

independent of

In order to be considered a legal owner of a public company, a person or organization must ______.

own at least one share of the company's stock

From the view of a shareholder, the measure of competitive advantage that matters most is return on _____.

risk capital

Managers implement the blueprint of their business model through which of the following? (Check all that apply.)

structures culture processes

To determine a product's producer surplus, which of the following must be compared? (Check all that apply.)

Total cost of production Price charged

When implementing the razor-razor-blade strategy, companies make their profit from:

complementary goods.

If Tom would have paid $1,000 for a new laptop but was able to purchase one for $800, the $200 he saved is considered his ______.

consumer surplus

Which of the following statements are true about the rival businesses Apple and Microsoft? (Check all that apply.)

Microsoft leveraged its computer operating system to sell other software programs. Apple introduced a series of popular consumer electronic devices.

Which of the following statements are true concerning a firm's business model? (Check all that apply.)

It indicates the way the firm works with buyers and suppliers. It essentially explains how the firm intends to make money. It details the firm's competitive tactics and initiatives.

Which of the following are elements of the social dimension of the triple bottom line?

achieving work/life balance human sustainability

Which of the following performance dimensions matter in judging the effectiveness of a firm's strategy? (Check all that apply.)

quantitative qualitative

The business model used by telecommunication companies when they provide a basic cell phone at no charge when the customer signs a two-year contract is a combination of which of the following types of business models? (Check all that apply.)

razor--razor-blade subscription

When competitive advantage is assessed from an analysis of publicly available data, a firm measures its _____.

accounting profitability