Why did Dell, Inc., embark on a global growth initiative?
A. There was too much competition in Dell's direct-to-consumer marketing channel.
B. Dell was recently purchased by Lenovo, a major Chinese competitor.
C. Emerging economies offered significant growth potential.
D. There were fewer restrictions in computer technology outside the United States.
E. U.S. sales had decreased.
Answer: C
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In evaluating proposed or existing strategies managers should
A. align existing strategies with new strategies to emphasize incremental gains. B. initiate new initiatives even though they don't seem to match the company's internal and external situation. C. ensure core capabilities are incorporated for establishing a competitive advantage. D. evaluate the firm's business model at least every three years. E. scrutinize the company's existing strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage, and result in above-average performance.
Typically, the least-risky option for entering international markets is ________.
Fill in the blank(s) with the appropriate word(s).
Everything else equal, in which of the following situations will a firm's degree of operating leverage (DOL) increase? Assume the firm currently generates a positive net operating income.
A. Sales increase substantially. B. The firm issues preferred stock. C. Fixed costs are decreased. D. The firm takes advantage of quantity discounts for the first time. E. The firm's sales move closer to its operating breakeven point.
The total compensation an employee earns including wages, salaries, commissions, bonuses, and any compensation earned before deductions such as taxes is called ________.
Fill in the blank(s) with the appropriate word(s).