Why would including a corporate mission statement on company letterhead or in corporate advertising be seen as a source of sustained competitive advantage?
Answer to relevant QuestionsLittle empirical evidence indicates that having a formal, written mission statement improves a firm’s performance. Yet many firms spend a great deal of time and money developing mission statements. Why?Will a firm that has a sustained competitive disadvantage necessarily go out of business? Do firms with the following financial results have below normal, normal, or above normal economic performance?a. ROA = 14.3%, WACC = 12.8%b. ROA = 4.3%, WACC = 6.7%c. ROA = 6.5%, WACC = 9.2%d. ROA = 8.3%, WACC = 8.3%In particular, if an industry has large numbers of complementors, does that make it more attractive or less attractive, or does it have no impact at all on the industry’s attractiveness? Justify your answer.Why would a firm currently experiencing competitive parity be able to gain sustained competitive advantages by studying another firm that is currently experiencing sustained competitive advantages?
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