Exam 1 MGT

Which of the following are examples of sociocultural factors? - An extended period of low interest rates. - The method of raising income. - A growing number of U.S. consumers have become more health-conscious about what they eat. - The growth of the Hispanic population.

- A growing number of U.S. consumers have become more health-conscious about what they eat. - The growth of the Hispanic population.

Which of the following are important factors in determining the intensity of rivalry among existing competitors? - Competitive industry structure - Exit barriers - Entry barriers - Short-term contracts - Industry growth

- Competitive industry structure - Exit barriers - Industry growth

Which of the following are examples of economies of scale? (Check all that apply.) - Having more negotiating power vis-à-vis suppliers - Employing technology less efficiently - Spreading fixed costs over more units - Spreading fixed costs over fewer units

- Having more negotiating power vis-à-vis suppliers - Spreading fixed costs over more units

Which of the following are essential questions that strategic leaders need to consider to increase the probability of entering an industry successfully? (Check all that apply.) - How to enter? - What type of entry should be made? - Who are the players? - Why is it important to study the external environment? - When to enter?

- How to enter? - What type of entry should be made? - Who are the players? - When to enter?

Which of the following statements about industry dynamics is true? Multiple select question. - Over time, industry structures are not stable. - Firms in an industry have a tendency to fragment in order to increase profitability. - The five forces model is a static model. - The five forces model takes into account industry dynamics.

- Over time, industry structures are not stable. - The five forces model is a static model.

Place the three frameworks used in industry analysis in the order they should be used, with the first at the top. - Porter's Five Forces - Strategic Group Mapping - PESTAL Mapping

- PESTAL Mapping - Porter's Five Forces - Strategic Group Mapping

Identify the framework that allows managers to synthesize insights obtained from internal and external analysis. Multiple choice question. - The resource-based view - VRIO framework - Value chain analysis - SWOT analysis

- SWOT analysis

What are the approaches that can be utilized when strategizing for competitive advantage? Multiple select question. - Strategic intent - Scenario planning - Strategy as planned emergence - Strategic commitment - Strategic planning

- Scenario planning - Strategy as planned emergence - Strategic planning

Which of the following are situations in which a resource is considered valuable? (Check all that apply.) - The resource helps a firm exploit an external opportunity. - The resource is both heterogeneous and immobile. - The resource helps the firm produce tangible, not intangible competencies. - The resource helps the firm increase its economic value creation (V-C).

- The resource helps a firm exploit an external opportunity. - The resource helps the firm increase its economic value creation (V-C).

Which of the following statements are true about the capabilities of a firm? (Check all that apply.) - They include organizational skills. - They include managerial skills. - They concern the deployment of resources. - They include intellectual property.

- They include organizational skills. - They include managerial skills. - They concern the deployment of resources.

Which of the following are characteristics of the strategic plan that makes up an intended strategy? (Check all that apply.) - Top-down - Rational - Structured - Improvised

- Top-down - Rational - Structured

Which cognitive bias refers to people's tendency to seek out information that aligns with their existing beliefs? - escalating commitment - reason by analogy - groupthink - confirmation bias

- confirmation bias

Among the various types of responsibilities a business firm has, which are specifically considered to be economic responsibilities? (Check all that apply.) - voluntarily giving back to society - giving investors a return on invested capital - doing what society deems just and fair - repaying debts to creditors

- giving investors a return on invested capital - giving investors a return on invested capital

What are the three aspects of mapping strategic groups? - graphing the firms in the strategic group and indicating each firm's market share - choosing two key dimensions for the horizontal and vertical axes - calculating the shareholder value of the two firms selected - identifying the most important strategic dimensions

- graphing the firms in the strategic group and indicating each firm's market share - choosing two key dimensions for the horizontal and vertical axes - identifying the most important strategic dimensions

Which of the following help determine competitive industry structure? (Check all that apply.) - height of entry barriers - firms' degree of pricing power - size and number of competitors - composition of the board of directors - the firm's resources

- height of entry barriers - firms' degree of pricing power - size and number of competitors

In an oligopoly, which of the following conditions exist? (Check the three that apply.) - few commodity products - high barriers to entry - a few large firms - differentiated products

- high barriers to entry - a few large firms - differentiated products

Which of the following are the four main competitive industry structures? (Check all that apply.) Multiple select question. - monopolistic competition - perfect competition - oligopoly - monopolistic oligopoly - monopoly - perfect monopoly

- monopolistic competition - perfect competition - oligopoly - monopoly

The executives of a computer software company developed an intended strategy to make the company more competitive. The company's ultimate ______ strategy contained elements not only of the intended strategy but also unplanned elements from a(n) ______ strategy. Multiple choice question. - emergent; intended - emergent, realized - realized; emergent - intended; realized

- realized; emergent

Along which of the following dimensions do strategic groups differ from one another? (Check all that apply.) - research and development - market segments - customer service - profit motive - distribution channels

- research and development - market segments - customer service - distribution channels

Which of the following are three approaches that strategic leaders rely on to formulate and implement strategy? - strategic planning - strategy as planned emergence - scenario emergence - spontaneous planning - scenario planning

- strategic planning - strategy as planned emergence - scenario planning

Which of the following are characteristics of a monopolistically competitive industry? (Check all that apply.)' - the ability to raise prices for differentiated products - very few competing firms - a differentiated product - obstacles to entry

- the ability to raise prices for differentiated products - a differentiated product - obstacles to entry

Which of the following topics should be considered during the analysis phase of the AFI framework? Multiple select question. - the role of strategic leadership and the strategy process - the external environment and associated challenges - the firm's internal strengths and resources - the firm's business model and competitive advantages - the locations in the world where the firm should compete

- the role of strategic leadership and the strategy process - the external environment and associated challenges - the firm's internal strengths and resources - the firm's business model and competitive advantages

Which of the following are aims of stakeholder strategy? (Select all that apply.) -To reduce the number of stakeholders of a firm -To persuade internal stakeholders to cede control to external stakeholders -To gain and sustain competitive advantage -To manage various stakeholders effectively

-To gain and sustain competitive advantage -To manage various stakeholders effectively

Which of the following elements comprise strategic management? (Check all that apply.) -analysis -realization -implementation -definition -formulation

-analysis -implementation -formulation

Which of the following is the least formal approach to setting the strategy process? A. strategy as planned emergence B. strategic planning C. top-down strategic planning D. scenario planning

A. strategy as planned emergence

Which of the following indicates that investors expect future growth for Tesla? A. the increasing value of the company's stock B. the firm's philanthropic efforts C. the large upfront investment Tesla had to make D. the lack of a defined competitive challenge

A. the increasing value of the company's stock

The ______ describes the internal activities a firm engages in when transforming inputs into outputs. A. value chain B. complementary chain C. primary chain D. supply chain

A. value chain

In crafting a strategic management plan, leaders must first determine the company's long-term objective. This means leaders must first define the organization's ______. A. vision B. values C. mission D. products

A. vision

______ describes a situation in which different social and business systems interact with each other. A. Planned emergence B. Social complexity C. Causal ambiguity D. Path dependence

B. Social complexity

When a firm implements a strategy that leads to superior performance relative to other companies in the same industry, it is said to have achieved ______. Multiple choice question. A. prolonged management B. a competitive advantage C. combined ideology D. fiscal debilitation

B. a competitive advantage

The power of ______ is the pressure they can put on the margins of producers in the industry by demanding a lower price or higher product quality. A. existing competitors B. buyers C. new entrants D. supplier

B. buyers

Cowgirl Boots, inexpensive leather boots for women, are selling at record-high numbers. The CEO of the company, however, cannot figure out why. Was it caused by the company's recent advertisement campaign or the newly reduced price of the boots or some other unknown factor? Based on this information, what concept describes the CEO's confusion regarding Cowgirl Boots' recent success? A. path dependence B. causal ambiguity C. social complexity D. time compression diseconomies

B. causal ambiguity

In the strategy process, questions concerning WHERE to compete, such as the industry or market, is referred to as ______ strategy. A. implementation B. corporate C. functional D. business

B. corporate

For a firm to sustain any competitive advantage over time, the fit between its internal strengths and external environment needs to be ______. Multiple choice question. A. causal ambiguous B. dynamic C. compressed D. tangible

B. dynamic

Exit barriers, strategic commitments, and competitive industry structure are important factors in determining the _____________. Multiple choice question. A. development of new products B. intensity of rivalry C. industry growth D. switching costs

B. intensity of rivalry

Research about how CEOs spend their days suggests that CEOs spend most of their time ______. A. brainstorming new ideas B. interacting with others C. monitoring the quality of the company's goods and services D. performing research

B. interacting with others

Managers have ______ direct influence over external forces in the firm's general environment than those in the firm's task environment. Multiple choice question. A. more B. less C. vastly more D. the same

B. less

Studies show that CEOs spend the majority of their time ______. A. making phone calls B. meeting people face-to-face C. emailing colleagues D. working alone

B. meeting people face-to-face

Industry-specific factors known as ______ separate one strategic group from another. A. planned emergencies B. mobility barriers C. oligopolies D. competitive rivalries

B. mobility barriers

Many firms of all sizes actively compete in the computer hardware industry, and there are no firms with a large market share. Product offerings tend to be similar but are differentiated in ways that enable some firms to raise or impact pricing. The computer hardware industry is an example of ______. A. perfectly competitive industry B. monopolistic competition C. oligopolistic industry D. natural monopoly

B. monopolistic competition

What are cognitive biases? A. constraints that prevent us from evaluating everything we encounter, such as the brain's inability to process large amounts of data B. obstacles in thinking that result in systematic errors in decision making and hinder rational thinking C. mental limitations that cause individuals to pursue a course of action, even after receiving negative feedback about its likelihood of success D. the way a firm allocates resources based on predetermined policies

B. obstacles in thinking that result in systematic errors in decision making and hinder rational thinking

In performing a SWOT analysis to generate insights from external and internal analysis, internal strengths and weaknesses can be determined by applying ______ and external strengths can be evaluated in part by applying ______. Multiple choice question. A. Porter's five forces: the VRIO framework B. the VRIO framework; PESTEL C. Porter's five forces; PESTEL D. PESTEL; the VRIO framework

B. the VRIO framework; PESTEL

What is one explanation for why Tesla underperforms when the company's profits are compared to the profits of established car companies? A. New companies are not able to employ good strategies. B. Established firms use different profit measurements. C. Startups often lose money early on. D. Investors have been unwilling to purchase the company's stock.

C. Startups often lose money early on.

Which term refers to strategic initiatives that lower-level employees undertake of their own volition, typically in response to unanticipated events? A. black swan events B. realized strategy C. autonomous actions D. planned emergence

C. autonomous actions

Isolating mechanisms are considered to be ______. Multiple choice question. A. barriers to entry B. ways to wipe away a competitive advantage C. barriers to imitation D. something that weakens the industry

C. barriers to imitation

Production costs can increase when ______. Multiple choice question. A. the power of suppliers goes down B. buyers demand lower quality and less service C. buyers demand higher quality and more service

C. buyers demand higher quality and more service

The organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically are called _____. A. resources B. activities C. capabilities D. core competencies

C. capabilities

The ______ perspective is a model that emphasizes a firm's ability to modify and leverage its resource base in a way that enables it to sustain competitive advantage in a constantly changing environment. A. resource flows B. value chain C. dynamic capabilities D. resource-based

C. dynamic capabilities

Which of the four corporate social responsibilities is considered first and foremost for business enterprises? A. legal B. philanthropic C. economic D. ethical

C. economic

Which of the following elements of the pyramid of corporate social responsibilities are result from a society's expectations toward business? (Check all that apply.) Multiple select question. A. economic responsibilities B. legal responsibilities C. ethical responsibilities D. philanthropic responsibilities

C. ethical responsibilities D. philanthropic responsibilities

Which of the following is an important part of strategic leadership and is the strategic leader's ability to influence and direct individuals to do things? A. vision B. value C. power D. groupthink

C. power

Effective guiding policy is supported by and stays consistent through the use of ______. Multiple choice question. A. grandiose statements B. trade-offs C. strategic commitments D. social responsibilities

C. strategic commitments

Strategy Implementation primarily involves which of the following? A. making productive contributions through motivation and talent B. the power and influence to direct activities of others C. the organization, coordination, and integration of how work gets done D. the choice of strategy in terms of where and how to compete

C. the organization, coordination, and integration of how work gets done

In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to ______. A. only non-US-based firms B. a firm in the technology industry C. the performance of other firms in its industry D. its past financial performance

C. the performance of other firms in its industry

Strategy is ______. A. a decision based on external situational analysis B. a decision based on internal situational analysis C. the set of actions a firm takes to achieve a competitive advantage D. a sustainable and dominant market share

C. the set of actions a firm takes to achieve a competitive advantage

Corporate strategy concerns questions related to ______. A. whom to compete with B. why to compete C. where to compete D. how to compete

C. where to compete

______ describes a situation where the cause and effect of a phenomenon are not readily apparent. A. Competitive parity B. Path dependence C. Planned emergence D. Causal ambiguity

D. Causal ambiguity

Which of the following reduces profit margins for air carriers? A. The presence of monopoly power B. Nationalization of the U.S. airline industry C. Entry barriers in the airline industry D. Large corporate customers contracting with the U.S. airline industry

D. Large corporate customers contracting with the U.S. airline industry

The Bright Bulb light bulb company produces a line of LED bulbs that customers consider very similar to competitors' LED bulbs. Which of the following conditions must be true for Bright Bulb to have a competitive advantage? Multiple choice question. A. The bulbs must be more expensive than competitors' offerings. B. The bulbs must be on the market for a longer period of time than competitors' bulbs. C. The bulbs must be sold by online retailers only. D. The bulbs must have a lower cost than competitors' bulbs.

D. The bulbs must have a lower cost than competitors' bulbs.

According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must ______. A. pay special attention to its main competitor B. have a lot of cash on hand C. temporarily ignore its organizational design D. be organized to capture value

D. be organized to capture value

Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has ______. A. a competitive advantage B. a competitive disadvantage C. a noncompetitive business D. competitive parity

D. competitive parity

A common cognitive bias is ______, which is when decision makers continue to support and invest in a project, even after receiving feedback indicating that it is likely to fail. A. groupthink B. illusion of control C. reason by analogy D. escalating commitment

D. escalating commitment

In the ______ step of a stakeholder impact analysis, firms identify those stakeholders that currently have, or potentially can have, a material effect on the company. Multiple choice question. A. second B. fourth C. third D. first E. fifth

D. first

If the problem with a business strategy results in causal ambiguity, managers will ______. A. know to treat the problem as a transient issue B. be able to apply an isolating mechanism for competitive advantage C. need training to communicate more clearly D. have a difficult time developing a theory to deal with the problem

D. have a difficult time developing a theory to deal with the problem

Strategy ______ concerns the organization, coordination, and integration of how work gets done. A. organization B. analysis C. formulation D. implementation

D. implementation

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' ______. A. entire investment portfolio B. political and cultural affiliations C. likelihood of bringing legal action against the firm D. interests and claims

D. interests and claims

What are autonomous actions? A. unexpected and unlikely occurrences that have a significant impact on society B. random events, pleasant surprises, and accidental occurrences that can have a major impact on an organization's strategic initiatives C. activities a firm pursues to explore and develop new products and processes, new markets, or new ventures D. strategic initiatives that lower-level employees undertake of their own volition, often in response to unanticipated events

D. strategic initiatives that lower-level employees undertake of their own volition, often in response to unanticipated events

Andrew's Home Center has created a unique situation for itself in its industry that allows the company to not only provide excellent value to its customers but also control its costs. This is known as ______. Multiple choice question. A. the competitive challenge B. competitive parity C. competitive disadvantage D. strategic positioning

D. strategic positioning

A competitive advantage that lasts for a long period of time is said to be ______. A. topical B. theoretical C. accurate D. sustainable E. geographic

D. sustainable

A resource is considered ______ if it helps a firm to deal with an external threat. A. easily imitated B. commonplace C. dynamic D. valuable

D. valuable

Which of the following best describes the core competency of the Five Guys Burgers and Fries company? Multiple choice question. A. Making quality burgers as part of a full-menu offering B. Making inexpensive burgers that are very flavorful C. Making high-quality burgers without limiting costs D. Making burgers with minimal wait time and cost

Making high-quality burgers without limiting costs

True or false: Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision.

True

A(n) ______ occurs when a firm performs below the industry average or is outperformed by its competitors. Multiple choice question. A. purchasing parity B. underperforming norm C. competitive disadvantage D. negative advantage E. competitive parity

competitive disadvantage

Intellectual property protection and social complexity are examples of ___________ mechanisms, which help a firm sustain a competitive advantage.

isolating/isolation

Which of the following summarizes the difference between a firm's vision and mission? •A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision. •A vision states the ethical values of a firm; a mission states the monetary goals of a firm. •A vision states how much a firm wants to earn; a mission states how these earnings will be accomplished. •A vision states the management values of a firm; a mission states the values of the other workers.

•A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision.

Your company, a small software development firm, has attracted many of the top young programmers in your area. As a result, the apps you produce have been praised for their innovative features and intuitive user experience. According to the bathtub metaphor in the dynamic capabilities perspective, what is the best way for you to protect against resource leakage? •Invest in an online marketing campaign for existing products to retain customers. •Open a satellite office overseas to support the company culture of taking chances. •Attempt to undercut the competition by imitating their top-selling product. •Improve the benefits package to retain key employees and reduce turnover.

•Improve the benefits package to retain key employees and reduce turnover. *According to the bathtub metaphor, resource leakage occurs when employee turnover is high or when the firm does not engage in certain activities for some time and forgets how to do them well. Since your employees are the primary drivers of your reputation for innovation, the best way to protect your stock of intangible resources against resource leakage is to ensure that employees are not recruited away by other firms.

A firm's ________ relates to its ability to create value for customers (V) while containing the cost to do so (C). •strategic position •growth strategy •industry analysis •co-operative strategy

•strategic position

______ are the firm's level of investments to maintain or build a resource. A. Resource flows B. Resource complements C. Resource value D. Resource stocks

A. Resource flows

What is the typical result of cognitive limitations? A. We choose the option that is "good enough" and satisfies immediate needs. B. We spend the time and energy necessary to research and find an optimal solution. C. We are able to process and evaluate large amounts of data. D. We address unexpected scenarios with flexibility and a quick and effective response.

A. We choose the option that is "good enough" and satisfies immediate needs.

In the dynamic capabilities perspective, competitive advantage derives from ______. A. actively modifying of the resource base B. advantages that flow from market forces C. a mix of isolating mechanisms D. static resource advantages

A. actively modifying of the resource base

A key feature of an oligopoly is that the competing firms in the industry ______, meaning the actions of any one firm will influence the behaviors of the other firms. Multiple choice question. A. are interdependent B. engage in co-opetition C. engage in monopolistic behavior D. are price takers

A. are interdependent

The value chain describes ______ of a firm. Multiple choice question. A. internal activities B. internal competencies C. the external environment D. the relationship between resources and the external environment

A. internal activities

Which of the following best describes a Level 5 manager in the Level-5 leadership pyramid? •Sivan is an employee who just started her career at DK Inc.; she has already been appreciated for her knowledge and skills in the new company. •Tom is an employee at Now Inc.; he has helped his team achieve their targets by contributing to the team's efforts. •Bill is part of the marketing team at Ransome Inc.; he has been given the charge of managing a team of three, so he will be promoted to a manager's position next month. •Jim is the CEO of Eco Inc.; he has helped his company in gaining and sustaining a competitive advantage through ethical decision making.

•Jim is the CEO of Eco Inc.; he has helped his company in gaining and sustaining a competitive advantage through ethical decision making. *Jim who is the CEO of Eco Inc. is a Level 5 manager in the Level-5 leadership pyramid. In the Level-5 leadership pyramid, the Level 5 manager reaches a leadership pinnacle, turning into a strategic leader. An effective strategic leader is an executive who builds enduring greatness into the organizations he or she leads.

Ride N Style Inc. is a bus line with service to several major cities. It has several competitors that each offer service to one or two cities, and based on its current outlays, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which of these strategies should Ride N Styles pursue instead? •Create a strategic group through mergers. •Compete based on inter-group rivalry, not intra-group rivalry. •Pursue a differentiated strategy. •Close the business until the cost of gas decreases.

•Pursue a differentiated strategy.

Sally manages the supply chain for a company that sells diamond watches. She learns that economists are predicting a moderate to severe recession in the next six to eight months. Based on that information, what action should Sally recommend to the company's owner? •Increase supply. During recessions, businesses that focus on low-cost solutions make significant profits. •Reduce supply. Customers generally reduce their purchases of luxury items when the economy falters. •Maintain the supply at its current rate. Economic forecasts are rarely accurate. •Wait six months and see what happens. Recessions rarely affect consumer spending.

•Reduce supply. Customers generally reduce their purchases of luxury items when the economy falters. *While it is true that businesses that focus on low-cost solutions can make significant profits during a recession, most other businesses do not. For customers, expenditures on luxury products (such as diamond watches) are often the first to be cut during recessionary periods.

Frozen Gold is a fast-growing chain of ice cream shops. It has acquired an edge over its competitors through its ability to provide a wide array of unique flavors and a hip atmosphere in stores. This advantage of Frozen Gold best exemplifies a •markup. •resource flow. •capital gain. •core competency.

•core competency.

According to an evaluation using the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were •invaluable and common. •easy to imitate. •extremely rare. non-substitutable

•easy to imitate.

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because: •entering the aircraft manufacturing industry requires huge capital investments. •there is expected to be a huge return on investment within this industry. •there is no credible threat of retaliation from the incumbents. •entering the aircraft manufacturing industry means violating government policies.

•entering the aircraft manufacturing industry requires huge capital investments.

A firm is said to gain a competitive advantage when it can

•exceed its own previous performances. •provide products similar to its competitors, but at lower prices. •perform at the same level as that of its competitors. •minimize the difference between value creation and cost. •To gain a competitive advantage, a firm needs to provide either goods or services consumers value more highly than those of its competitors, or goods or services similar to the competitors' at a lower price.

Contour Inc., a vendor, regularly supplies capacitors to All Purpose Electronics for use in its products. Therefore, Contour Inc. is All Purpose Electronics' •internal stakeholder. •director. •shareholder. •external stakeholder.

•external stakeholder.

A firm will fail to create a sustained competitive advantage when the •fit between its internal strengths and the external environment is static. •source of its competitive advantage is causally ambiguous. •source of its competitive advantage is socially complex. •resource bundles exhibit heterogeneity and immobility.

•fit between its internal strengths and the external environment is static.

Firms that compete within the same strategic group generally experience: •more competitive rivalry than firms outside their strategic group. •less competitive rivalry than firms outside their strategic group. •the same competitive rivalry than firms outside their strategic group. •no competitive rivalry because they are substitutes.

•more competitive rivalry than firms outside their strategic group.

To reduce the amount of time it takes to apply packaging to its finished products, North Star Foods is implementing new equipment at its production plants. By doing this, North Star is addressing a _____ in the value chain analysis. •primary activity •secondary activity •support activity •premier activity

•primary activity

A firm is said to gain a competitive advantage when it can: •exceed its own previous performances. •provide products similar to its competitors, but at lower prices. •perform at the same level as that of its competitors. •minimize the difference between value creation and cost.

•provide products similar to its competitors, but at lower prices. *provide products similar to its competitors, but at lower prices.

Although eHook Inc. and eFury Inc. operate in the same consumer electronic industry, eHook Inc. has better sales and brand equity. This is attributed to eHook Inc.'s commitment to innovation. The company has adequate financial and human capital to invest in research and development, an area in which eFuryInc. lags behind. In this scenario, which of the following critical assumptions of the resource-based view of a firm has been illustrated? •resource value •resource heterogeneity •resource immobility •resource imitation

•resource heterogeneity

Amelia has recently started a restaurant in a commercial area that already has many other established restaurants and popular fast-food chains. Amelia owns the building in which her restaurant is located, rather than leasing premises as her competitors do. This factor allows her to offer her products at a more competitive price. Amelia has also invested a huge amount in designing the restaurant's interior and in equipping the kitchen with the appliances that are most widely used in her industry. In this scenario, which of the following is the most valuable resource for Amelia's business? •the investments made by Amelia on the restaurant's interior •the type of kitchen equipment widely used in her industry •the restaurant's late entry into the market •the building owned by Amelia, which reduces cost of operations

•the building owned by Amelia, which reduces cost of operations