Exam (elaborations) BUSINESS 2 STRM046 (BUSINESS2STRM046)

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1. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. 2. Alligator Enterprises has earned above-average returns since its foun... ding five years ago. No other firm has challenged Alligator in its particular market niche; therefore, the firm's owners can feel secure that Alligator has established a competitive advantage. 3. The goal of strategy implementation is to develop a permanent competitive advantage. 4. Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment. 5. Average returns are those in excess of what an investor expects to earn from other investments with a similar amount of risk. 6. Above average returns are those in excess of what an investor expects to earn from other investments with similar stock prices. 7. Returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales. 8. To implement a firm’s strategies, the firm takes actions to with the goal of achieving strategic competitiveness and above average returns. 9. Economies of scale and huge advertising budgets are just as effective in the new competitive landscape as they were in the past. 10. The two primary drivers of hypercompetition are the emergence of the global economy and technology. 11. The rate of technology diffusion has been steadily increasing over the last two decades. 12. While patents may be an effective way of protecting proprietary technology, many firms competing in the electronics industry do not apply for patents to prevent competitors from utilizing the technological knowledge that would be included in the patent application. 13. Examples of incremental innovations include iPods, PDAs, Wi-Fi, and web browser software. .............................................................................................continued............................................................................................................... [Show More]

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