Firms that achieve competitive parity can expect to
a. earn below-average returns.
b. earn average returns.
c. earn above-average returns.
d. initially earn above-average returns, declining to average returns.
Answer: earn average returns.
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Strategic Management Chapter 3
- When the target firm does not solicit the acquiring firm's bid, it is referred to as a(n)
- Currently, the rationale for making an acquisition includes each of the following EXCEPT
- Market power is derived primarily from the
- The March 2011 announcement that AT&T was acquiring T-Mobile USA from Deutsche Telekom is a _____ acquisition and is intended to
- Claude holds a large number of shares of Bayou Beauty, a regional brewing company that is considered a likely takeover target by a major international brewer. It would probably be in Claude's financial interest if Bayou Beauty's owners
- In a merger
- There are few true mergers because
- A(n) _____ occurs when one firm buys a controlling, or 100 percent interest, in another firm.
- During the recent financial crisis, M&A activity _____ , whereas in 2011, M&A activity _____.
- Researchers have found that shareholders of acquired firms often
- Some research findings have shown that acquisitions typically ______ for shareholders in the acquiring firm.
- All of the following statements are correct EXCEPT
- The ______ are those with the potential to be formed into core competencies as the foundation for creating value.
- Tools such as _____ help the firm focus on its core competencies as the source of its competitive advantages.
- All core competencies have the potential to become core
- Government agencies are known for having so many layers and rules that decisions are made slowly and inefficiently. In this case the _____ resource is a detriment to taxpayers using and paying for the bureaucracy.
- A food bank in Florida was struggling to serve its customers. It asked Walmart for help. Walmart sent a team of managers who reorganized storage and transportation. The food bank was able to increase the number of clients served by tenfold. Walmart shared its expertise in
- Charmed by Claire is a successful retail boutique that sells women's accessories. Claire, the owner/manager, knows that women have many options when buying jewelry. When customers enter her store they are greeted by name and given prompt, friendly attention. Customers return to the store because the service is excellent. Claire says the most important decision she makes is hiring the best staff because customer service is vital to her business. Customer service is
- Many firms outsource the payroll function of paying employees to firms such as ADP. Payroll is a(n)
- ____ may exist among managers making decisions as well as among those affected by the decisions.
- Amazon is building a new distribution facility in Robbinsville, New Jersey. It is immediately off the exit of a major road. This is an example of a(n) _____ resource.
- Subscriptions to the New York Times have been decreasing as more customers receive their news through other media. At the same time, advertisers have shifted portions of their spending to other media. The NYT's managers are making decisions under
- One capability that can be learned from failure is when to
- All of the following are true about the strategic decisions managers make about their firm's internal organization EXCEPT that
- A firm's core competencies, integrated with an understanding of the results of studying the conditions in the external environment, should