Provide at least two examples of a company's competitively valuable capabilities.
What will be an ideal response?
1. To be sufficiently innovative to thwart the efforts of clever rivals to copy or closely imitate the product offering. Examples cited in Chapter 1 include Apple Inc. (innovative products), Johnson & Johnson (reliability of baby products), BMW (engineering for performance), Rolex (luxury and prestige), and Hyundai (advanced manufacturing processes and unparalleled quality control systems).
2. To make it extremely difficult for rivals to match the low-cost leader's approach to driving costs out of the business. Examples cited in Chapter 1 include Walmart (superior distribution and inventory management capabilities) and Southwest Airlines (superior revenue management and efficient maintenance and turnaround of aircraft).
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Which of the following formulas is used to calculate a company's relative market share?
A) (Company's Market Share/Company's Potential Market Share) x 100 B) (Company's Total Sales/Total Sales of the Largest Competitor) x 100 C) Company's Targeted Sales - Company's Net Sales D) (Company's Market Share/Total Share of Three Largest Competitors) x 100 E) Total Sales of the Largest Competitor - Company's Total Sales
Companies may provide for extra capacity in anticipation of future increases in demand for their products or services. Such extra capacity is called ______.
A. a capacity cushion B. overproduction capability C. waste D. flexible capacity
At the ______ stage of the cycle of adjustment to the foreign environment, the expatriate can function in the new culture almost as well as at home.
A. mastery B. adjustment C. honeymoon D. culture shock
The servicing model of representation sees the relationship between workers and their union as:
A. A narrow economic exchange that develops only weak ties between leaders and union members B. A narrow economic exchange that rests upon strong ties between leaders and union members C. A social exchange that develops only weak ties between leaders and union members D. A social exchange that develops strong ties between leaders and union members