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Questions and Answers of
Management Leadership
What tools do managers have to realign the hard triangle? The soft square? Discuss.
How should a firm decide what industry it is in? Discuss.
What are the two generic strategies, or primary ways, in which companies attempt to offer unique value relative to competitors? Discuss.
Who is ultimately responsible for a company's strategy? Who does this individual (or individuals) call upon for help in formulating strategy for the firm? Discuss.
According to Michael Porter's "Five Forces" model, why do some firms earn higher profits than other firms? Discuss.
What factors determine the intensity of the threat of new entrants? Discuss.
What are substitutes? Discuss.
Who are the four primary stakeholder groups that influence strategic decisions in a company? Discuss.
What account is credited when a company receives donated assets? What is the rationale for this choice?
Coulson Company is in the process of refinancing some long-term debt. Its fiscal year ends on December 31, 2018, and its financial statements will be issued on March 15, 2019. Under current U.S.
Refer to the situation described in BE 20-10. Assume the error was discovered in 2020, after the 2019 financial statements are issued. Ignoring income taxes, what journal entry will PKE use to
On December 1, 2018, Davenport Company sold merchandise to a customer for $20,000. In payment for the merchandise, the customer signed a 6% note requiring the payment of interest and principal on
In February 2018, Culverson Company began developing a new software to be sold to customers. The software allows people to enter health information and track daily eating and exercise habits to track
Superior Company owns 40% of the outstanding stock of Bernard Company. During 2018, Bernard paid a $100,000 cash dividend on its common shares. What effect did this dividend have on Superior's 2018
What are the various levels of aggregation to which the LCNRV and LCM approaches can be applied?
Refer to E 3-21. E3-21 The Canton Corporation operates in four distinct business segments. The segments, along with 2018 information on revenues, assets, and net income, are listed below ($ in
Einhorn Industries believes it is not probable that Thaler Inc. will default on an account receivable, but given the possibility of default, Einhorn believes it will collect $30,000 less than the
(Based on Appendix 12A) Northwest Carburetor Company established a fund in 2015 to accumulate money for a new plant scheduled for construction in 2018. How should this special purpose fund be
What is the primary objective of the required lease disclosures for the lessor and lessee?
Dowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2018, to Bassadrome. Because of a shipping backlog, Dowell held the inventory in Dowell's warehouse until January 12, 2019
Answer Q 13-27, but assume that you report under IFRS.
A Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF's financial statements and disclosure notes for the year ended December 31,
On December 28, 2018, Tristar Communications sold 10 units of its new satellite uplink system to various customers for $25,000 each. The terms of each sale were 1/10, n/30. Tristar uses the gross
Refer to the situation described in BE 7-4. Answer the questions assuming that Tristar uses the net method to account for sales discounts. BE 7 - 4 On December 28, 2018, Tristar Communications sold
The focus of the case is the situation described in Judgment Case 11-5. Your instructor will divide the class into two to six groups depending on the size of the class. The mission of your group is
According to the five forces model, one potential threat in an industry is buyers. Yet unless buyers are satisfied, they are likely to look for satisfaction elsewhere. Can the fact that buyers can be
How would you add complementors to the five forces model? In particular, if an industry has large numbers of complementors, does that make it more attractive, less attractive, or does it have no
Which is more critical to sustaining human life-water or diamonds? Why do firms that provide water to customers generally earn lower economic performance than firms that provide diamonds?
One way of thinking about organizing to implement cost leadership strategies is that firms that pursue this strategy should be highly centralized, have high levels of direct supervision, and keep
Which, if any, of the bases of product differentiation in question #1 are likely to be sources of sustained competitive advantage? Why?
Suppose you obtained the following regression results, where the starred (*) coefficients are statistically significant. What could you say about the bases of product differentiation in this
Identify three industries or markets that have the volume-profit relationship described in Figure 5.2. Which firms in this industry are implementing cost leadership strategies? Which are implementing
For each of the strategic alliances described in the above question, what actions could be taken to reduce the likelihood that partner firms will "cheat" in these alliances?
Examine the Web sites of the following strategic alliances and determine which of the sources of value presented in Table9.1 are present: (a) Dow-Coming (an alliance between Dow Chemical and
Are international strategies always just a special case of diversification strategies that a firm might pursue? What, if anything, is different about international strategies and diversification
Match the actions of these firms with their sources of potential value. (a) Tata Motors (India) acquires Jaguar (U.K.). (b) Microsoft (U.S.) opens four research and development centers in Europe. (c)
What are strategic competitiveness, strategy, competitive advantage, above-average returns, and the strategic management process? Discuss.
What are the characteristics of the current competitive landscape? What two factors are the primary drivers of this landscape? Discuss.
According to the I/O model, what should a firm do to earn above-average returns?
What does the resource-based model suggest a firm should do to earn above-average returns?
What are vision and mission? What is their value for the strategic management process? Discuss.
What are stakeholders? How do the three primary stakeholder groups influence organizations? Discuss.
How would you describe the work of strategic leaders? Discuss.
What are the elements of the strategic management process? How are they interrelated? Discuss.
1. Which stakeholder group did the company fail to satisfy? 2. The competitive landscape of the women's athletic apparel market is widening with Lululemon at the forefront. A hyper-competition is
Why is it important for a firm to study and understand the external environment?
What are the differences between the general environment and the industry environment? Why are these differences important?
What is the external environmental analysis process (four parts)? What does the firm want to learn when using this process?
What are the seven segments of the general environment? Explain the differences among them.
How do the five forces of competition in an industry affect its profit potential? Explain. Discuss.
What is a strategic group? Of what value is knowledge of the firm's strategic group in formulating that firm's strategy?
What is the importance of collecting and interpreting data and information about competitors? What practices should a firm use to gather competitor intelligence and why?
Why is it important for a firm to study and understand its internal organization? Discuss.
What is value? Why is it critical for the firm to create value? How does it do so? Discuss.
What are the differences between tangible and intangible resources? Why is it important for decision makers to understand these differences? Are tangible resources more valuable for creating
What are capabilities? How do firms create capabilities? Discuss.
What four criteria must capabilities satisfy for them to become core competencies? Why is it important for firms to use these criteria to evaluate their capabilities' value-creating potential?
What is value chain analysis? What does the firm gain by successfully using this tool?
What is outsourcing? Why do firms outsource? Will outsourcing's importance grow in the future? If so, why?
How do firms identify internal strengths and weaknesses? Why is it vital that managers have a clear understanding of their firm's strengths and weaknesses?
What are core rigidities? What does it mean to say that each core competence could become a core rigidity?
1. What are some of Mars Inc.'s competitive advantages?2. What resources and resulting capabilities and core competencies do you see within the Mars Inc. organization that gives it strategic
What is a business-level strategy?
What is the relationship between a firm's customers and its business-level strategy in terms of who, what, and how? Why is this relationship important?
What are the differences among the cost leadership, differentiation, focused cost leadership, focused differentiation, and integrated cost leadership/differentiation business-level strategies?
How can each one of the business-level strategies be used to position the firm relative to the five forces of competition in a way that helps the firm earn above-average returns? Discuss.
What are the specific risks associated with using each business-level strategy?
1. What strategy was the new CEO at JC Penney seeking to implement given the generic strategies found in Chapter 4? 2. What was the result of change in strategy implemented? 3. Why was this strategy
1. Describe Burberry's business-level strategy. 2. How is Burberry managing its relationship with customers? 3. Is the differentiation strategy appropriate for Burberry? Why or why not? Now or in the
Who are competitors? How are competitive rivalry, competitive behavior, and competitive dynamics defined in the chapter?
What is market commonality? What is resource similarity? What does it mean to say that these concepts are the building blocks for a competitor analysis?
How do awareness, motivation, and ability affect the firm's competitive behavior?
What factors affect the likelihood a firm will take a competitive action? Discuss.
What competitive dynamics can be expected among firms competing in slow-cycle markets? In fast-cycle markets? In standard-cycle markets? Discuss.
What factors affect the likelihood a firm will initiate a competitive response to a competitor's action(s)?
1. FedEx and UPS have many similar resources and compete across many of the same markets. How are they different? Stated differently, how do they differentiate themselves? 2. What are some of major
1. How can GM understand its competitive environment? 2. General Motors and its competitors are constantly "thinking of tomorrow" in terms of their products. Describe the rate of competitive speed in
1. What is corporate-level strategy and why is it important? 2. What are the different levels of diversification firms can pursue by using different corporate-level strategies? 3. What are three
1. By purchasing La Boulange what competitive advantage, does Starbucks hope to gain? 2. How does Starbucks' current market power increase its chances for success in expanding its product offerings
Why are merger and acquisition strategies popular in many firms competing in the global economy?
What reasons account for firms' decisions to use acquisition strategies as a means to achieving strategic competitiveness?
What are the seven primary problems that affect a firm's efforts to successfully use an acquisition strategy?
What are the attributes associated with a successful acquisition strategy? Discuss.
What is the restructuring strategy, and what are its common forms? Discuss.
What are the short-and long-term outcomes associated with the different restructuring strategies?
1. Of the "Reasons for Acquisitions" section in the chapter, which reasons are the primary drivers of Cisco's acquisition strategy? 2. Of the acquisitions Cisco has completed, which ones are
1. Why did the government and consumers have regulatory opposition to the proposed merger and acquisition to the proposed merger between Comcast and Time Warner? 2. Why would Comcast's partnership
How can the resource-based view of the firm (see Chapters 1 and 3) help us understand why firms develop and use cooperative strategies such as strategic alliances and joint ventures?
What are some global environmental trends affecting the choice of international strategies, particularly international corporate-level strategies?
What five entry modes do firms consider as paths to use to enter international markets? What is the typical sequence in which firms use these entry modes?
What are political risks and what are economic risks? How should firms approach dealing with these risks?
What are the strategic competitiveness outcomes firms can reach through international strategies, and particularly through an international diversification strategy?
What are two important issues that can potentially affect a firm's ability to successfully use international strategies?
What is the relationship between the core competencies a firm possesses, the core competencies the firm feels it needs, and decisions to form cooperative strategies?
What does it mean to say that the partners of an alliance have "complementary assets"? What complementary assets do Renault and Nissan share?
What are the risks associated with the corporate-level strategic alliance between Renault and Nissan? What have these firms done to mitigate these risks?
Is it possible that some of the firms mentioned in this Mini-Case (e.g., Renault, Nissan, Mazda, Peugot-Citroen, Opel-Vauxhall) might form a network cooperative strategy? If so, what conditions might
What incentives influence firms to use international strategies?
What are the three basic benefits firms can achieve by successfully using an international strategy?
What four factors are determinants of national advantage and serve as a basis for international business-level strategies?
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