You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a subscription-based service in which households within a 100-mile radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example, cherry juice, apple juice, lemonade) twice a week. As you think about starting your business, you ask yourself: How rare is the service I am offering? How valuable is it? Can I organize the company to maximize my advantages in the marketplace? After asking these questions, review and identify which question from VRIO did you forget to ask?
A. Is the resource or capability valuable?
B. Is the resource or capability currently controlled by only a few firms or no other firms?
C. Is the firm organized to exploit the resource of capability?
D. What values should be emphasized?
E. Is the resource or capability costly for other firms to imitate?
E. Is the resource or capability costly for other firms to imitate?
VRIO is a framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions about its Value, Rarity, Imitability, and Organization (VRIO). The one question you forgot to ask was, Is the resource or capability costly for other firms to imitate?
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A professor was given an administrative warning after he made an inappropriate joke about Princess Diana shortly after her death
Students were likely upset because they saw Princess Diana as a profane individual worthy of special attention and respect. Indicate whether the statement is true or false
Exhibit 8A.1You have been asked to use a CAPM analysis to choose between Stocks R and S, with your choice being the one whose expected rate of return exceeds its required return by the widest margin. The risk-free rate is 4.00%, and the required return on an average stock (or the "market") is 10.00%. Your security analyst tells you that Stock S's expected rate of return is equal to 11.00%, while Stock R's expected rate of return is equal to 12.00%. The CAPM is assumed to be a valid method for selecting stocks, but the expected return for any given investor (such as you) can differ from the required rate of return for a given stock. The following past rates of return are to be used to calculate the two stocks' beta coefficients, which are then to be used to determine the stocks' required
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A 65 year-old man is retiring and can take either $500,000 in cash or an ordinary annuity that
promises to pay him $50,000 per year for as long as he lives. Which of the following statements is MOST correct? A) The higher the interest rate, the more likely the man will prefer the $500,000 lump sum. B) If the man expects to live more than 10 years, then he will prefer the annuity. C) If the man is certain the company will not default on its future payments, he should select the $50,000 per year. D) Because of the time value of money, the man will always be better off taking the $500,000 up front.
Coastal development restrictions that prohibit use of the land are considered a taking
Indicate whether the statement is true or false