Question

For many people, the shareholder perspective is perhaps the most familiar measure of competitive advantage for...

For many people, the shareholder perspective is perhaps the most familiar measure of competitive advantage for publicly traded firms. What are some of the disadvantages of using shareholder value as the sole point of view for defining competitive advantage? Any examples to illustrate your point(s)?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Some of the disadvantages of using shareholder value as the sole point of view for defining competitive advantage are as follows:

  • The overall company performance can be quite difficult to predict accurately, specially in short term as the stock prices have volatile nature.
  • Stock prices can be easily influenced by the macroeconomic factors
  • Stock prices are set based on the rationale provided by the investors, which usually turns baseless for the overall industry
Add a comment
Know the answer?
Add Answer to:
For many people, the shareholder perspective is perhaps the most familiar measure of competitive advantage for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Please include a word count at the end of your post (excluding citations and references), no...

    Please include a word count at the end of your post (excluding citations and references), no matter whether it is an initial post or a reply. For many people, the shareholder perspective is perhaps the most familiar measure of competitive advantage for publicly traded firms. What are some of the disadvantages of using shareholder value as the sole point of view for defining competitive advantage? Any examples to illustrate your point(s)

  • swer any five questions question One nescribe the four main characteristics of a service and the...

    swer any five questions question One nescribe the four main characteristics of a service and the impact of markating of a service. Use examples to illustrate your answers Question Two 20 marks) Discuss some of he maor changes ocouring in the service serdm nu impact competition. and how they 20 marks) Question Three Many Small to Medium sized Enterprises (SMEs) face the challenge of finding the right people and building effective teams. Discuss some of the crucial success factors needed...

  • Boards of directors today are under pressure to become actively involved in planning and monitoring corporate...

    Boards of directors today are under pressure to become actively involved in planning and monitoring corporate activity. At WorldCom, Tyco, and other corporations, the boards were either unaware of the misdeeds taking place around them or, in some cases, actually were party to those activities. At Enron, for example, the board of directors several times voted to waive its policies regarding independence and arms-length transactions, allowing executives to continue their fraud unhampered. When the negligence of these boards was publicly...

  • Introduction: A manufacturing company that possesses many complexities can be highly challenged when maintaining production goals...

    Introduction: A manufacturing company that possesses many complexities can be highly challenged when maintaining production goals and standards in conjunction with a major organizational change. Garment manufacturing is a complex industry for many reasons. The product line is a complex array of styles, seasons, varying life cycles and multidimensional sizing. Many sewn product firms are viewing TQM as the appropriate strategy to meet the double demand of competition and quality; however, many companies are finding sustaining their TQM adoption decision...

  • Q.3\ How could IT/e-banking assist an organization/ a bank to achieve a competitive advantage in the...

    Q.3\ How could IT/e-banking assist an organization/ a bank to achieve a competitive advantage in the marketplace? Explain through the case of Citibank. please make sure you give a unique answer (not copied one) ,Please no hand writing, and need references. This question is from ECOM 421 e-Business Strategies and Business Models course e-Business Strategy and Models in Banks : Case of Citibank E-business strategy in Citibank: Banks today are up-to-date with both the pros and cons of the internet....

  • 21. In the U.S. many firms that publicly trade stocks are under tremendous pressure each quarter...

    21. In the U.S. many firms that publicly trade stocks are under tremendous pressure each quarter (every three months) to report higher profits, sales, and/or growth. If they can’t, then their stock price often will get hit hard and go down as investors dump those stocks. Question: What kind of executive decision making will this type of business environment encourage? Executives will be encouraged to make good long-run cost choices like investing in new machinery and retraining workers to give...

  • Most people fail to recognize the importance of networking and negotiating to their career success. People...

    Most people fail to recognize the importance of networking and negotiating to their career success. People who are good at networking tend to form better human relations with key individuals who can help them in advancing their professional careers. People who are good at negotiating have a better chance of getting what they truly desire. One’s ability to negotiate affects his or her compensation in the workplace. Negotiating Women, Inc. is a consulting company that focuses on women exclusively by...

  • 1. List some of the various communities to which you belong (organizations, work, hobbies, fields of...

    1. List some of the various communities to which you belong (organizations, work, hobbies, fields of expertise, family). Give examples of some of the behavioral and language characteristics particular to each group? For instance, do you speak to your job supervisor in the same way you speak to your child or your best friend? Why might you interact with members of different communities differently?    2.What are some of your past experiences with writing? Please explain what you like and...

  • Intrepid's misadventures in Indonesia Unfortunately, it is a familiar chain of events in the mining industryJunior...

    Intrepid's misadventures in Indonesia Unfortunately, it is a familiar chain of events in the mining industryJunior mining partner makes a discovery in a faraway land Junior mining company sinks significant amounts of capital into the ground to establish a world-class resource. The discovery attracts the interest of powerful local business concerns and/or governments. The deposit is seized under suspicious circumstances and the junior mining company's shareholders are annihilated. This story has played out all over the world in the last...

  • There was no question about Carl’s genius. Seven years ago he decided to enter the competitive...

    There was no question about Carl’s genius. Seven years ago he decided to enter the competitive nightmare that the personal computer business had become. Although on the surface that appeared to be a rather non-genius-like move, the genius came in the unique designs and features that he developed for his computer. He also figured a way to promise delivery in only two days for the local and regional market. Other computer makers also had rapid production and delivery, but they...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT