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Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a week, which is about the same as the income of a close competitor. As a result, we can conclude that the two businesses also have a competitive parity in the industry.

PolyCon Inc. is a public stock company that provides natural gas for businesses. Although this company generates a large profit, management’s focus on reducing costs caused the maintenance budget to be trimmed. Its pipelines have at times leaked, which created significant environmental problems. As a result, the company’s value creation has suffered. This scenario supports strategy scholars’ warning that public companies

Grace founded First Plainfield Bank in 2003. Ten years later, the company went public. Despite Grace’s death in 2021, the company reported a 75 percent increase in revenue in 2022. Which of the following characteristics of a publicly traded company does this scenario best exemplify?

Roberta is interested in the concept of strategy and decides to create her own. As a result, Roberta says that her strategy is to focus on competitive benchmarking to achieve competitive advantage. Which is the best evaluation of Roberta’s statement?

Both Lorenzo’s Engines and Water King incur a cost of $5,000 to manufacture a boat engine. However, the economic value created by Water King is more than that created by Lorenzo’s Engines. What does this indicate?

Juan wants to open his own hot dog restaurant but doesn’t know anything about business. He needs help determining who his competition is, how he should craft his strategy to compete and how he’ll implement his strategy to achieve a competitive advantage. He’s hired you to help him get started. As a result, you will probably use which of the following?

Hanna, the owner of GT Trading Inc., is engaged in the strategy formulation stage. She has already allocated a significant sum of money to upgrade the company’s communication network (sunk costs) but has failed to see any positive outcomes. Given the money she has already spent, she feels she needs to recover those costs and moves forward with the communications upgrade even though the outcome does not seem promising. This best illustrates the concept of

Amazon’s network of distribution centers allows it to drastically reduce its delivery times compared with most other online retailers. These distribution centers are examples of Amazon’s

Rayya is exploring multiple suppliers in order to find the best price. However, instead of calling all seven potential suppliers, he only reaches out to the first four and bases his selection on those instead of contacting all suppliers. Rayya’s action best describes the concept of

Ari is a firm believer in Milton Friedman’s view of a firm’s social obligations. With which of the following statements is Ari most likely to agree?