The chapter mentions that accounting data do not consider off–balance sheet items. A retailer that owns its stores will list the value of that property as an asset, for example, while a firm that leases its stores will not. What are some of the accounting and shareholder advantages of leasing compared to owning retail locations?
Answer to relevant QuestionsHow does this issue play out when comparing brick-and-mortar stores to online businesses (for example, Best Buy versus Amazon; Barnes & Noble versus Amazon; Blockbuster versus Netflix)? What conclusions do you draw?In Chapter 4, we discussed the internal value chain activities a firm can perform in its business model (Exhibit). The value chain priorities can be quite different for firms taking different business strategies. Create ...Describe a firm you think has been highly innovative. Which of the four types of innovation—radical, incremental, disruptive, or architectural—did it use? Did the firm use different types over time?Franchising is widely used in the casual dining and fast food industry, yet Starbucks is quite successful with a large number of company-owned stores. How do you explain this difference? Is Starbucks bucking the bandwagon ...Alliances are often used to pursue business-level goals, but they may be managed at the corporate level. Explain why this portfolio approach to alliance management would make sense.
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