Create a word list that expresses your perceptions about strategy. Would this list have looked different before reading the chapter?
What will be an ideal response?
Most classroom responses in our experience tend to focus either on long range planning, tactics (as
in game plans, rather than frameworks and conceptions to secure longer term survival sustainability)
and (short-term) competitive gambits. The 5Ps offer other insights. Possible others include
pioneering/prospecting; direction-setting/path-finding; various sporting metaphors. The 5Ps and the
alternative frames of reference should make readers aware of the depth and variety of strategic
conceptions.
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The group of American consumers born between 1979 and 1994 is often called ________
A) baby busters B) the silent majority C) Generation Y D) tweens E) Generation X
Creative ideas :
a. are novel and meaningful b. are most likely to occur in bureaucratic organizations. c. are most likely to be based on the firm's core competencies. d. rarely result in the cannibalization of sales from current products. e. are rarely generated through interactions with customers.
Describe the three major factors to consider when selecting a brand's target position.
What will be an ideal response?
Pennewell Publishing Inc. (PP)
is a zero growth company. It currently has zero debt and its earnings before interest and taxes (EBIT) are $80,000. PP's current cost of equity is 10%, and its tax rate is 25%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. Refer to the data for . PP is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. The debt would have an interest rate of 8%. The new funds would be used to repurchase stock. It is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. If this plan were carried out, what would be PP's new value of operations? A. $552,941 B. $588,235 C. $617,647 D. $648,529 E. $680,956