per transaction. How many transactions will take place in this market if no firm exists? a. 10 x 100 b. 10 + 100 c. (10 x 100) x 5 d. (10 + 100) x 5 e. None of the above 4. A certain product is comprised of 10 factors of production. The market in which this product is used has 100 customers. Transaction costs in this market are $5 per transaction. How much is the total transaction cost in this market if a firm exists? a. 10 x 100 b. 10 + 100 c. (10 x 100) x 5 d. (10 + 100) x 5 e.
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role and contribution in the creation of new firm-‐specific advantages (FSAs) Carlotta Assetta – Student Number: 11112980 ABSTRACT This paper attempts to more precisely delineate the MNEs subsidiaries’ role and contribution to new firm-‐specific advantages development. I present a new framework, which
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How might Porter’s Diamond explain why some locations produce firms with sustained competitive advantages in some industries more than others? Answer with reference to examples from at least two different industrial sectors. Answer. Porter’s diamond model is a model that can help understand competitive position of location in global competition that suggest a inherent reason why some firm within location are more competitive that other on a global scale. The argument is that the local are provided
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How well does strategy fit the firm’s situation? 2) Competitive advantage test: does strategy lead to sustainable competitive advantage? 3) Performance test: does strategy boost firm performance?Testing a winning strategy: 1) Goodness of fit test: How well does strategy fit the firm’s situation? 2) Competitive advantage test: does strategy lead to sustainable competitive advantage? 3) Performance test: does strategy boost firm performance?Testing a winning strategy: 1) Goodness of fit test:
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Introduction Kotler (1996:284) describes brand equity as the value of a brand based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, patents and trademarks and The Wall Street Journal (2010:1) ranked the top five brands as Coca cola, IBM, Microsoft, Google and General Electric. Coca cola Bilaras (2012:1) maintains that Coca cola built its brand equity by adapting a global marketing strategy, which considered the whole world as a
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Evaluating Firm Strengths and Weaknesses What Does Internal Analysis Tell Us? Internal analysis provides a comparative look at a firm’s capabilities • what are the firm’s strengths? • what are the firm’s weaknesses? • how do these strengths & weaknesses compare to competitors? Why Does Internal Analysis Matter? Internal analysis helps a firm: • determine if its resources and capabilities are likely sources of competitive advantage • establish strategies that will exploit any sources of competitive
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understand by the concept of the “competitive advantage”. The authors suggested three tests to determine the source of competitive advantage. Explain. (You may need to do some reference. Use online databases from library). Definition of 'Competitive Advantage is an advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retains more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product
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Is It Important? Multiple Choice Questions 1. | Keeping in mind Apple's competitive advantage, which of the following products was introduced by Apple in 2007? A. | iPad | B. | iPhone | C. | iPod | D. | iTunes | | 2. | _____ is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage. A. | Supply chain management | B. | Integrated technology management | C. | Strategic
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QUIZ: WHY THE CONCEPT OF COMPETITIVE ADVANTAGE IS CENTRAL TO THE STUDY OF STRATEGIC MANAGEMENT, AND EXAMINE THE USE OF PORTER’S GENERIC STRATEGEIS BY COMPANIES TO COMPETE. KEY TERMS Competitive advantage. This is the favourable position an organization seeks in order to be more profitable than its competitors. Strategic management. It is the systematic analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment)
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Chapter 1 Introduction to Strategy * Strategy: Theory of how to gain competitive advantages. (How competition is going to evolve, and how that evolution can be exploited for competitive advantage.) Based on knowledge of the marketplace and based on the firm’s capabilities and resources. a) Being different from your rivals b) Creating value while containing costs c) Deciding what to do and what NOT to do d) Combining activities to land in a unique market position
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