Why are the capabilities needed to build a sustainable competitive advantage so important to a winning business strategy? Cite one of the company examples in the chapter to illustrate your answer.
What will be an ideal response?
A strategy should be tailored to the company's collection of competitively important resources and capabilities. It is unwise to build a strategy upon the company's weaknesses or pursue a strategic approach that requires resources that are deficient in the company. Examples of winning business strategies cited in the chapter include (1) Pandora's superior capabilities in developing and using algorithms to generate playlists based on listeners' predicted preferences and (2) Apple Inc.'s distinctive innovation and pricing strategies and proliferation across the globe. The capabilities of both of these companies have proven difficult for competitors to imitate or best and have allowed each to build and sustain competitive advantage.
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Assessing control risk at a lower level involves all of the following except:
A. performing tests of controls. B. identifying specific controls to rely on. C. concluding that controls are ineffective. D. analyzing the achieved level of control risk after performing tests of controls.
Shae's Café and Tommy's Grill form a joint venture. Shae can participate in the venture's management
A. only to the extent that she assumes liability for the venture's debts. B. only to the extent of her investment in the venture. C. to any extent. D. to no extent.
According to the model of power influence presented in the leadership text, the effectiveness of influence tactics is affected by
A) strategies, rules, and procedures B) aspirations, motivations, and skills C) leader traits, leader behaviors, and the situation D) consideration and initiating structure
Which of the following prohibits general solicitation of buyers??
A) ?Regulation A+ offerings B) ?IPOs C) ?Crowd-funding offerings D) ?None of the above