8/27 Class

Question 1

cases

Answer 1

the first case is extra credit
cases must include concepts in chapter
parsimony matters: do not use fluffy words, give it to her straight and simple
priority matters
answer the right questions
don’t repeat facts from the case, don’t include a vignette from the case, you will be penalized
assertions must be supported by case information
appendix
other issues
page limit, font size(11 or 12 point), style, etc.
see guidelines for successful cases in canvas

Question 2

strategic management process

Answer 2

external analysis

objectives strategic choice -

              internal analysis

Strategy implementation - Competitive advantage

this makes up your mission

Question 3

mission statement

Answer 3

defines organization’s long term purpose
cultural glue that enables an organization to function as a collective entity
identifies firm to internal and external entities

Question 4

competitive advantage

Answer 4

when a firm has an advantage over the competition

Question 5

competitive parity

Answer 5

when you don’t have a competitive advantage, you are the same as your competition

Question 6

economic value

Answer 6

perceived benefits - cost

Question 7

accounting measures

Answer 7

accounting ratios that tell how they are doing
ROE, EPS, profit margins, liquidity ratios, leverage ratios
drawbacks?
short term bias, managerial discretion, intangible assets
she will quiz you on this:
profitability, liquidity, leverage, activity and which ratios are a part of

Question 8

economic measures

Answer 8

cost of capital: debt, equity, WACC
firms must earn returns sufficient to repay existing suppliers of capital and attract new capital
include in final project!!!!!

Question 9

temporary vs sustained competitive advantage

Answer 9

depends on the industry