Strategy and the Firm
Managers make a number of choices that affect the long-term health of an organization. These choices include the basic strategies the firm will develop and execute about operations, and choices about the organization of the firm. Understanding the issues underlying the choices will help the manager make better decisions.
To maximize the value of the firm, managers must pursue strategies that increase the profitability of the enterprise and its rate of profit growth over time. Managers can increase the profitability of the irm by pursuing strategies that lower cost or add value to the firm's products. Managers can increase the rate at which profits grow by pursuing strategies to sell more products or entering new markets. Expanding internationally can help managers boost the firm's profitability and increase the rate of profit growth over time.
Roll over the items on the left to read a description. Then, drag the key choice components to one of the three areas that come together to maximize the value of a firm.
Strategy Operations Organization low cost differentiation structure support activities primary activities architecture
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Strategy and the Firm Managers make a number of choices that affect the long-term health of an...
Differentiation Strategy Read the overview below and complete the activities that follow. Early in the process...
Differentiation Strategy Read the overview below and complete the activities that follow. Early in the process of crafting a strategy, company managers must decide which of the five basic competitive strategies to employ: overall low cost, broad differentiation, focused low cost, focused differentiation, or best-cost provider. Broad differentiation strategies seek to produce a competitive edge by incorporating attributes and features that set a company's product/service offering apart from rivals in ways that buyers consider valuable and worth paying for Successful...
17) Organizational strategy is formulated at all of the following levels except at the A) business...
17) Organizational strategy is formulated at all of the following levels except at the A) business level B) functional level C) individual level D) corporate level 18) strategy is a plan to use and develop core competences so that the organization cannot only can protect and enlarge its domain but can also expand into new domains A) Business-level B) Functional level C) Global level D) Corporate-level 15 19) Which of the following activities can be a source of both a...
The role of managers in corporate level strategy is to: Identify markets or industries in which...
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Predicting Exchange Rate Movements Whether international businesses are concened with the long-term profitability of foreign investment, export...
Predicting Exchange Rate Movements Whether international businesses are concened with the long-term profitability of foreign investment, export opportunities, the price competitiveness of foreign imports, or the short-term foreign exchange transactions that occur on a daily basis, the firm must pay attention to exchange rate movements. These movements can affect whether a deal results in a profit or a loss Exchange rate movements are extremely difficult to predict, though businesses need some forecasting ability to plan. A number of theories, methods, and borrowings...
Question 2 < Previous Next > The benefits of pursuing a strategy of social responsibility and...
Question 2 < Previous Next > The benefits of pursuing a strategy of social responsibility and corporate citizenship include o the enhanced profitability that results when a company opts to spend money on socially responsible activities. o the positive impact that such a strategy can have on the company's image rating if the company spends a meaningful amount on socially responsible activities over a multi-year period. O the positive impact that such a strategy has on the company's S/Q rating...
" Which of the following types of payments are usually received by an exporter as an...
" Which of the following types of payments are usually received by an exporter as an ongoing payment calculated as a percentage of the license holder's sales? A) Subsidies B) Direct investments C) Flat fees D) Agent fees E) Royalties 8) 7) Which statement is true regarding independent agents? A) They usually specialize in a particular product. -B) They represent one firm at a time. C) They act as sales representatives. D) They are usually based at domestic offices E)...
Long-term debt offers advantages and disadvantages to the issuing firm and to the investor in debt...
Long-term debt offers advantages and disadvantages to the issuing firm and to the investor in debt securities. Examine the following two statements and indicate whether each represents an advantage or a disadvantage to the or the investor issuer By being classed as creditors, debtholders Debt securities can increase the issuer's have priority in cash flows and assets as earnings per share, everything else remaining constant compared with shareholders. Does the preceding statement indicate an Does the preceding statement indicate an...
______ 16. Each of the following is a typical source of long-term capital for a firm EXCEPT &n
______ 16. Each of the following is a typical source of long-term capital for a firm EXCEPT A. Accounts Receivable. B. long-term debt. C. preferred stock. D. common stock. ______ 17. ____________________________ is the process of evaluating and selecting long-term investments that are consistent with the firm’s goal of maximizing owners’ wealth. A. Compounding B. Capital budgeting C. Normalizing D. Underwriting ______ 18. ________________________ are projects whose cash flows in a capital budgeting analysis are unrelated to one another. I.e., accepting one project does not prevent the firm from doing...
Financial ratios are useful because they give us ways to make meaningful comparisons of a firm's...
Financial ratios are useful because they give us ways to make meaningful comparisons of a firm's financial data _________. Group of answer choices with other similar firms within the same geographic region. all of the above. to other firms within the same market. across time. Flag this Question Question 32 pts A company with callable bonds might buy back the bonds (call the bonds) from investors if prevailing interest rates decline. This is because the company could then re-issue the...
Managers use projected financial statements in four principal ways. (1) They use the projected statements to...
Managers use projected financial statements in four principal ways. (1) They use the projected statements to assess whether the firm's anticipated performance is in line with its own internal targets and with investors' expectations. (2) They use them to estimate the impact of proposed operating changes. (3) They use them to anticipate the firm's future financing needs and to arrange necessary financing. (4) Finally, they use them to estimate free cash flows, which determine the firm's overall value. Managers forecast...
Differentiation Strategy Read the overview below and complete the activities that follow. Early in the process of crafting a strategy, company managers must decide which of the five basic competitive strategies to employ: overall low cost, broad differentiation, focused low cost, focused differentiation, or best-cost provider. Broad differentiation strategies seek to produce a competitive edge by incorporating attributes and features that set a company's product/service offering apart from rivals in ways that buyers consider valuable and worth paying for Successful...
17) Organizational strategy is formulated at all of the following levels except at the A) business level B) functional level C) individual level D) corporate level 18) strategy is a plan to use and develop core competences so that the organization cannot only can protect and enlarge its domain but can also expand into new domains A) Business-level B) Functional level C) Global level D) Corporate-level 15 19) Which of the following activities can be a source of both a...
Predicting Exchange Rate Movements Whether international businesses are concened with the long-term profitability of foreign investment, export opportunities, the price competitiveness of foreign imports, or the short-term foreign exchange transactions that occur on a daily basis, the firm must pay attention to exchange rate movements. These movements can affect whether a deal results in a profit or a loss Exchange rate movements are extremely difficult to predict, though businesses need some forecasting ability to plan. A number of theories, methods, and borrowings...
Question 2 < Previous Next > The benefits of pursuing a strategy of social responsibility and corporate citizenship include o the enhanced profitability that results when a company opts to spend money on socially responsible activities. o the positive impact that such a strategy can have on the company's image rating if the company spends a meaningful amount on socially responsible activities over a multi-year period. O the positive impact that such a strategy has on the company's S/Q rating...
" Which of the following types of payments are usually received by an exporter as an ongoing payment calculated as a percentage of the license holder's sales? A) Subsidies B) Direct investments C) Flat fees D) Agent fees E) Royalties 8) 7) Which statement is true regarding independent agents? A) They usually specialize in a particular product. -B) They represent one firm at a time. C) They act as sales representatives. D) They are usually based at domestic offices E)...
Long-term debt offers advantages and disadvantages to the issuing firm and to the investor in debt securities. Examine the following two statements and indicate whether each represents an advantage or a disadvantage to the or the investor issuer By being classed as creditors, debtholders Debt securities can increase the issuer's have priority in cash flows and assets as earnings per share, everything else remaining constant compared with shareholders. Does the preceding statement indicate an Does the preceding statement indicate an...
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