An enterprise has distinctive resources and capabilities according to V-R-I-O-S criteria. It competes in an attractive industry sector where its economic performance is outstanding. It considers entering a related sector where its resource base would be equally distinctive. However, the new sector has many more competitors than its present sector and its growth prospects are less attractive. Realistically, would the enterprise achieve its accustomed level of economic performance in the new sector, or would it worsen?
What will be an ideal response?
Many factors affect enterprise performance within (and thus under its control) and external to it,
partially or wholly beyond its control. So any answer is subject to the ‘all else equal’ caveat. If
growth prospects in the new sector are less attractive, the enterprise really should consider how it
would benefit from entry and what (unnecessary) risks it exposes itself to. It may be unwise to think
in terms of marginal benefits based on shared or complementary resources. If the degree of
competition it would face is equivalent to what it is used to, then it would expect to maintain its high
level of performance once entry costs have been amortised and necessary learning has occurred. But
greater competition implies lower margins and hence lower economic performance for many,
perhaps all competitors. Would the new entrant perform well above average for the sector? Well, if
the enterprise has superior resources and capabilities, that is a reasonable prediction, albeit it could
take a considerable time to achieve this level. Much also depends on how competitors respond. The
most capable ones will create the greatest threats and if they are heavily dependent on the sector, will
fight to defend their positions, weakening and possibly driving out some competitors and depressing
the economic performance of the remainder, including the new entrant. Long term, only the fittest
would normally survive, but for a new entrant the costs of securing that position could damage its
overall economic performance for a long time.
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Hot Topic LLC appeals to tweens and teens through their Gothic frocks, fad movie gear, piercing paraphernalia, and popular T-shirts and posters. The staff at Hot Topic wears the merchandise. Also, they are active in helping their young customers choose from the hip merchandise. The teens and tweens can be considered the
A. marketing mix. B. target market. C. marketing objective. D. retail mix. E. retail format.
In a project network, recycling through a set of activities or ________ is not permitted.
Fill in the blank(s) with the appropriate word(s).
Fletcher Company collected the following data regarding production of one of its products. Compute the fixed overhead cost variance. Direct labor standard (2 hrs. @ $12.75/hr.)$25.50 per finished unitActual direct labor hours 81,500 hrs.Budgeted units 42,000 unitsActual finished units produced 40,000 unitsStandard variable OH rate (2 hrs. @ $14.30/hr.)$28.60 per finished unitStandard fixed OH rate ($336,000/42,000 units)$8.00 per unitActual cost of variable overhead costs incurred$1,140,000 Actual cost of fixed overhead costs incurred$338,000
A. $18,000 unfavorable. B. $18,300 favorable. C. $18,000 favorable. D. $14,300 unfavorable. E. $18,300 unfavorable.
Which sentence is best expressed?
A) Being as gas prices are now increasing again, would you like to form a carpool? B) Because gas prices have increased so much, would you like to form a carpool? C) Being that gas prices have increased so much, would you like to form a carpool?