What is your appraisal of Panera Bread's financial performance based on the data contained in

case Exhibit 1? How well is the company doing financially? Use the financial ratios in Table 4.1
of Chapter 4 as a guide in doing the calculations needed to arrive at an analysis-based answer to
your assessment of Panera's rec

Evaluate Frog's Leap's strategy. Use financial ratio and VRIN analyses to support your
evaluation. What is working well, and what could be improved?

What factors are driving change in the textbook industry? What is your assessment of the impact
of these driving forces of change?

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What does the data in case Exhibit 1 reveal about lululemon's financial and operating
performance?

What is competition like in the luxury goods industry? What competitive forces seem to have the
greatest effect on industry attractiveness? What are the competitive weapons that rivals are using
to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and
becoming more intense? Why or why

What recommendations would you make to Lew Frankfort to improve the company's
competitive position in the industry and its financial and market performance?

Evaluate the existing support systems at Bayonne. How do these information and control systems
impede or aid the cause of good strategy execution? What changes might be necessary?

Does Under Armour have any resource strengths or competitive capabilities that qualify as a
distinctive competence?

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What business strategy recommendations would you make to Kaspar Rorsted, Henkel's CEO?
Should the company redouble its efforts to broaden its leadership and cultural diversity? Should
the company consider new strategic partnerships or new acquisitions? Are there other potential
strategic options that he needs to consid

What 3-4 top priority issues do Kevin Plank and Under Armour management need to address?

As discussed in Chapter 1, a company's business model explains the rationale for why its
business approach and strategy will be a moneymaker. This rationale sets forth the key
components of the company's business approach, indicates how revenues will be generated, and
makes a case for why the strategy can deliver value

How would you reduce poaching if you were in charge of the SANPark's operation?
What are the chief elements of Costco's strategy? How good is the strategy?

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Is the current strategy for Henkel producing good strategic and financial results? What are some
key indicators of performance?

What are your recommendations to Professor Lindsol concerning his interest in launching a new
venture specializing in etextbooks?

What are the chief components of Chipotle's strategy?

What should Frog's Leap sustainability action plan for the next 10-20 years contain? Consider
actions are short- vs. medium- vs. long-term in nature.

Does the strategy qualify as a winning strategy? Why or why not?

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What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its
situation? Does the company have any core competencies or distinctive competencies?

Is Massey Energy striving to conduct its business in a socially responsible manner? What
specific additional actions could Massey Energy take that would make an even greater
contribution to CSR and sustainability? What might be the long-term interests of shareholders?
How might a commitment to CSR and sustainability co

What does a SWOT analysis reveal about the overall attractiveness of Under Armour's situation?

What 3-4 top priority issues do Christine Day and lululemon management need to address?

How strong are the competitive forces confronting lululemon in the market for performance-
based yoga and fitness apparel? Do a five-forces analysis to support your answer.

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What recommendations would you make to Under Armour CEO Kevin Plank? At a minimum,
your recommendations should cover what to do about each of the top priority issues identified in
question 9?

In what ways, if any, is Massey Energy exercising corporate social responsibility? Are there any
changes to its CSR strategy that you would suggest?

What do you see as the key success factors in the market for performance-based yoga and fitness
apparel?
Which one of the five generic competitive strategies discussed in Chapter 5 most closely
approximates the competitive approach that Chipotle Mexican Grill is employing?

What are the defining characteristics of the luxury goods industry? What is the industry like?

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What should Milliken recommend to Dave Rand? Consider short- as well as medium-to-longer
term actions.

What does Panera Bread need to do to strengthen its competitive position and business prospects
vis-Ã -vis other restaurant chain rivals?

How does Henkel link rewards and incentives to strategically-important employee behaviors and
the company's targeted outcomes?

Which process management tools for improved operational strategy execution should Milliken
be considering for implementation? Why are some tools more appropriate than others in this
situation?

What are the key elements of Under Armour's strategy?

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Is Frog's Leap a socially responsible business? How does it stack up against its wine industry
peers? Benchmark Frog's Leap against any winery that you have heard of or against another
business (if you are under 21). You may need to do some outside research. What grade would
you give Williams for his efforts at sustain

How would you reduce poaching if a rhino's horn could be cut and re-grown in six years?

What does a SWOT analysis for Tiffany & Co. reveal about its ability to seize market
opportunities and nullify external threats?

What is Father Prior's strategy for achieving his vision? What competitive advantage might
Mystic Monk Coffee's strategy produce?

How strong are the competitive forces in the movie rental marketplace? Do a five-forces analysis
to support your answer.

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How is the market for luxury handbags and leather accessories changing? What are the
underlying drivers of change and how might those driving forces change the industry?
What is impressive about Under Armour's financial performance during the 2006-2011 period
(as shown in case Exhibit 1)?

What are the primary components of lululemon's value chain?

How would you describe Massey Energy's strategy leading up to the Upper Big Branch Mine
disaster in April 2010? Is it ethical? Why or why not? Is there anything that Massey Energy has
done or is now doing in the aftermath of that disaster that could legitimately be considered as
"unethical" by its stakeholders? Explain

What are the key factors of success in the textbook industry? List and discuss the resources and
competitive capabilities are required to achieve success in the industry?

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What is your appraisal of Tiffany & Co.'s financial performance based on the data in case
Exhibit 1? How do the company's EBIT margins compare for the 2006 - 2011 period? Is there
evidence that Tiffany's strategy is working?

How does Under Armour's competitive strength compare against that of Nike and The adidas
Group? Do a weighted competitive strength assessment using the methodology presented in
Table 4.4 in Chapter 4 to support your answer. Based on your assessment and calculations, does
Under Armour have a net competitive advantage or

Evaluate the key strategy implementation efforts at Henkel. Has management allocated sufficient
resources to the strategy execution effort? Exercised strong leadership to propel strategy
execution forward? Instituted polices and procedures that facilitate good strategy execution?
Explain.

What are the strategically relevant factors of the macro-environment that affect the attractiveness
of the U.S. jewelry industry? Specifically, are general and industry economic conditions and
socio-cultural factors favorable to Tiffany & Co.'s business situation?

What is Coach's strategy to compete in the handbag and leather accessories industry? Has the
company's competitive strategy yielded a sustainable competitive advantage? If so, has that
advantage translated into superior financial and market performance?

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How strong are the competitive forces confronting Sift and other specialty bakers? Which one of
the five forces is the strongest? Do a five-forces analysis to support your answer.

How well is Bayonne utilizing its current capacity? What hard data might you use to substantiate
your assessment?
Which of the company's resources and capabilities have the greatest competitive power? Are
Sift's resources and capabilities (1) competitively valuable, (2) rare, (3) difficult to copy, or (4)
not easily trumped by the substitute resources of rival firms. How well do Sift's resources and
capabilities match up with the

What is Sift Cupcake and Dessert Bar's strategy? Which of the five generic competitive
strategies discussed in Chapter 5 most closely fits the competitive approach that Sift is taking?
Explain.

Who are the suppliers of rhino and what was the average selling price of a rhino? How does the
sale of rhino help SANParks?

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What is Tiffany & Co.'s strategy? Which of the five generic competitive strategies discussed in
Chapter 5 most closely fit the competitive approach that Tiffany & Co. is taking? What type of
competitive advantage is Tiffany trying to achieve?

Does it appear that Father Daniel Mary has set definite objectives and performance targets for
achieving his vision?

Read some of the recent Six Sigma articles posted at isixsigma.com. Prepare a one-page report to
your instructor detailing how Six Sigma is being used in various companies and what benefits
these companies are reaping from Six Sigma implementation.

Perform an Internet search to identify at least two companies in different industries that have
entered into outsourcing agreements with firms with specialized services. In addition, describe
what value chain activities the companies have chosen to outsource. Do any of these outsourcing
agreements seem likely to threat

What do we mean when we say that MRP is based on dependent demand?

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What's going on at Frog's Leap Winery? Have its efforts to become sustainable been thus far
successful?

What recommendations would you make to lululemon CEO Christine Day? At a minimum, your
recommendations should cover what to do about each of the top priority issues identified in
question 9?

Consumer Reports, the service that reports unbiased testing and ratings on cars (together with
about everything else we buy), recommends avoiding new cars in their first year of production,
especially those loaded with new technology. What can Tesla do to refute this recommendation?
Policies and procedures facilitate strategy execution when they are designed to fit the company's
strategy and objectives. Using your university's access to Lexis-Nexis or EBSCO, search for
recent articles that discuss how a company has revised its policies and procedures to provide
better top-down guidance to company

Chile's largest producer of wine, Concha y Toro, chooses to compete in Europe, North America,
the Caribbean, and Asia using an export strategy. Go to the investor relations section of the
company's website (www.conchaytoro.com/the-company/investor-relations) to review the
company's press releases, annual reports, and p

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The primary strategic initiatives of Ford Motor Company's restructuring plan executed between
2005 and 2010 involved accelerating the development of new cars that customers would value,
improving its balance sheet, working with its union employees to improve manufacturing
competitiveness, reducing product engineering c

ERP systems provide a wealth of information that can be used and analyzed in a wide variety of
ways. What is an inherent risk with so much information?

Discuss why transfer batches and process batches many times may not and should not be equal.

Using your general knowledge of the coffee take-out industry, perform a SWOT analysis for
Starbucks.

1. Using Exhibit 1.3 as a model, describe the source-make-deliver-return relationships in the

following systems: a. An airline b. an automobile manufacturer c. A hospital d. An insurance
company

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Using your university library's subscription to Lexis-Nexis, EBSCO, or a similar database,

identify and discuss three key strategies that Volkswagen is using to compete in China.

Does it appear that Nintendo relies more heavily on offensive or defensive strategies as it
competes in the video game industry? Has Nintendo's timing of strategic moves made it an early
mover or a fast follower? Could Nintendo's introduction of the Wii be characterized as a blue
ocean strategy? You may rely on your kn

Ikea is widely known for its commitment to business ethics and environmental sustainability.
After reviewing its About Ikea section of its website (www.ikea.com), prepare a list of 10
specific policies and programs that help the company achieve its vision of creating a better
everyday life for people around the world.
Using your university library's subscription to Lexis-Nexis, EBSCO, or a similar database, find
two examples of how companies have relied on strategic alliances or joint ventures to substitute
for horizontal or vertical integration.

Illustration Capsule 5.1 discusses Walmart's low-cost position in the supermarket industry. Based
on information provided in the capsule, explain how Walmart has built its low-cost advantage in
the industry and why a low-cost provider strategy is well-suited to the industry.

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What priority rule do you use in scheduling your study time for midterm examinations? If you
have 5 exams to study for, how many alternative schedules exists?

The heart of Toyota's strategy in motor vehicles is to out compete rivals by manufacturing world-
class, quality vehicles at lower costs and selling them at competitive price levels. Executing this
strategy requires top-notch manufacturing capability and super-efficient management of people,
equipment, and materials. Il

Go to www.jnj.com, the Web site of Johnson & Johnson, and read the J&J Credo, which sets
forth the company's responsibilities to customers, employees, the community, and shareholders.
Then read the "Our Company" section. Why do you think the credo has resulted in numerous
awards and accolades that recognize the company

Using Google Scholar or your university library's access to EBSCO, InfoTrac, or other online
databases, do a search for recent writings on decentralized decision making and employee
empowerment. According to the articles you find in the various management journals, what are
the conditions under which decision making sh

Examine the overall corporate organizational structure chart for Exelon Corporation. The chart
can be found by going to www.exeloncorp.com and using the Web site search feature to locate
"organizational charts." Does it appear that strategy-critical activities are the building blocks of
Exelon's organizational arrangem

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Should Tesla deliver cars to customer on a first-come-first-served basis (i.e., in the order of when
deposits were placed)?

Review the Careers link on L'Oréal's worldwide corporate Web site (www.loreal.com and
click on the company's worldwide corporate Web site option). The section provides extensive
information about personal development, international learning opportunities, integration of new
hires into existing teams, and other areas o

Review the information in Illustration Capsule 4.1 concerning the value chain average costs of
producing and selling an upscale polo shirt and compare this with the representative value chain
depicted in Figure 4.3. Then answer the following questions: a. Which of the company's primary
value chain activities account f

The Snack Food Association publishes an annual state-of-the-industry report that can be found at
www.sfa.org. Based on information in the latest report, does it appear that the economic
characteristics of the industry will present industry participants with attractive opportunities for
growth and profitability? Explain

Starbucks operates more than 17,000 stores in more than 50 countries. How many of the four
tests of the competitive power of a resource does the store network pass? Explain your answer.

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Peruse the business group listings for United Technologies shown below and listed at its website
(www.utc.com). How would you characterize the company's corporate strategy? Related
diversification, unrelated diversification, or a combination related-unrelated diversification
strategy? Explain your answer.

Best Buy is the largest consumer electronics retailer in the United States with 2011 sales of more
than $50 billion. The company competes aggressively on price with rivals such as Costco
Wholesale, Sam's Club, Walmart, and Target, but is also known by consumers for its first-rate
customer service. Best Buy customers ha

ITT Corporation has had a long history as a conglomerate enterprise. In recent years, however,
the company has undergone some significant changes. How would you describe these changes
and what do you think were the drivers? Explain. (You can find lots of information about this
company and its recent strategic moves on

Discuss competition in the search industry. Which of the five competitive forces seem strongest?
weakest? What is your assessment of overall industry attractiveness?

Based on information provided in Illustration Capsule 9.3, discuss the actions taken by top
management at Novo Nordisk to that have allowed the company to be considered a global leader
in business ethics. Also, explain how the company's values encourage employees to act in an
ethical manner. What role does the company'

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What other suggestions would you have for Tesla relative to ensuring the quality of their new
Model 3 car?

MULTIPLE CHOICES 1. What represents the difficulty in being environmental leader? a.

Timescales b. Prices on raw materials. c. Scarce resources d. Bad environmental situation. 2.
What is "tragedy of the commons" scenario? a. Fight in lunchroom b. People take other's cattle c.
Everybody uses a land w
Using the financial ratios provided in the Appendix and the financial statement information for
Avon Products below, calculate the following ratios for Avon for both 2009 and 2010: a. Gross
profit margin b. Operating profit margin c. Net profit margin. d. Times interest earned coverage
e. Return on shareholders' e

What are the key factors that define success in the industry? What are the key resources and
capabilities required of successful search engine companies? How do these compare to the key
success factors of the smartphone industry?

What are some of the main areas of complexity and divergence in this kind of operation relative
to the standard dental clinic?

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What are IKEA"s competitive priorities?

Why is the cash-to-cash cycle time such an important supply chain performance measure?

Collaborative agreements with foreign companies in the form of strategic alliances or joint
ventures are widely used as a means of entering foreign markets. They are also used as a means
of acquiring resources and capabilities by learning from foreign partners. And they are used to
put together powerful combinations of

MULTIPLE CHOICES 1. Which of the following is a similarity between the United States
military and other non military organizations: a. Both must respond to competition b. Both
involve very close proximity to peers c. Both are non-profit d. Both have identical missions 2.
The author defines the United States

Compare the theory of transformational leadership with the theory of sustainability leadership.
Where are they similar? Where are they different?

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Based on the information provided in Illustration Capsule 2.4, explain how corporate governance
at Freddie Mac failed the enterprise's shareholders and other stakeholders. Which important
obligations to shareholders were fulfilled by Fannie Mae's board of directors? What is your
assessment of how well Fannie Mae's comp

Go to www.nestle.com and read the company's latest sustainability report. What are Nestlé's
key environmental sustainable environmental policies? How do these initiatives relate to the
company's principles, values, and culture and its approach to competing in the food industry?

If you were a shareholder in Interface Carpeting, would you be happy with the program and
policies that Ray Anderson has put into place? Why or why not?
Visit the vendors' websites to read up on both SAP and Microsoft Dynamics ERP systems.
Provide a list of four ways in which the two differ in their approach to implementing ERP.

Elements of Walmart's strategy have evolved in meaningful ways since the company's founding
in 1962. Prepare a one- to two-page report that discusses how its strategy has evolved after
reviewing all of the links at Walmart's About Us page, which can be found at
walmartstores.com/AboutUs/. Your report should also assess

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Describe IKEA's process for developing a new product.

Illustration Capsule 11.2 provides a sampling of motivational tactics employed by several

prominent companies (many of which appear on Fortune's list of the 100 best companies to work
for in America). Discuss how rewards at Google, Lincoln Electric, Nordstrom, W.L. Gore, and
Amgen aid in the strategy execution efforts

Using the methodology illustrated in Table 4.3 and your knowledge as an automobile owner,
prepare a competitive strength assessment for General Motors and its rivals Ford, Chrysler,
Toyota, and Honda. Each of the five automobile manufacturers should be evaluated on the key
success factors/strength measures of: cost com

Read some of the recent Six Sigma articles posted at isixsigma.com. Prepare a one-page report to
your instructor detailing how Six Sigma is being used in various companies and what benefits
these companies are reaping from Six Sigma implementation.

The Walt Disney Company is in the following businesses: • Theme parks • Disney Cruise
Line • Resort properties • Movie, video, and theatrical productions (for both children and
adults) • Television broadcasting (ABC, Disney Channel, Toon Disney, Classic Sports
Network, ESPN and ESPN2, E!, Lifetime, and A

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What are additional features of the IKEA concept (beyond their design process) that contribute to
creating exceptional value for customer?

Based on what you know about the quick-service restaurant industry, does McDonald's strategy
as described in Concepts & Connections 1.1 seem to be well matched to industry and
competitive conditions? Does the strategy seem to be keyed to a cost-based advantage,
differentiating features, serving the unique needs of a ni

Which of the six points in the chapter that justify environmental leadership do you think is the
most important? Why? Which is least important? Why?
Assume you are in charge of developing the strategy for a multinational company selling
products in some 50 countries around the world. One of the issues you face is whether to employ
a multidomestic, a transnational, or a global strategy. a. If your company's product is mobile
phones, do you think it would make bette

Why is managing bottlenecks so important in work-center scheduling?

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Procter and Gamble's systematic approach to management development is discussed in

Illustration Capsule 10.1. Based upon the information provided in the capsule, explain how the
company's approach to recruiting and its promotion from within policy helps build managerial
talent. Explain why its formal training opportuni

What is required to make cross-docking a viable solution for a logistics provider?

Based on what you learned about John Deere from answering the previous question, how do you
think their culture affects their ability to execute strategy and operate with excellence?

Explore BMW's website at www.bmwgroup.com and see if you can identify at least three ways
in which the company seeks to differentiate itself from rival automakers. Is there reason to
believe that BMW's differentiation strategy has been successful in producing a competitive
advantage? Why or why not?

What reaction to the term "sustainability" do you have? Does this term make intrinsic sense to
you? Do you believe this term can motivate others toward environmental action? What does
sustainability mean to you?

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What would be important criteria for selecting a site for an IKEA store?

What types of situations other than environmental issues does the "Tragedy of the Commons"
scenario apply to? Have you experienced these situations?

Recent figures show that almost 60% of the volume of freight movements in the United States
ship by truck. Rail is far more fuel efficient on a ton-mile basis - CSX advertises they can move a
ton of freight 468 miles on a gallon of fuel.* Why is it that rail does not have a greater share of
the freight market in the

Describe how an ERP system fits into the overall information system structure in a firm.

Has Father Daniel Mary established a future direction for the Carmelite Monks of Wyoming?
What is his vision for the monastery? What is his vision for Mystic Monk Coffee? What is the
mission of the Carmelite Monks of Wyoming?
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Using the information in Table 2.1, critique the adequacy and merit of the following vision
statements, listing effective elements and shortcomings. Rank the vision statements from best to
worst once you complete your evaluation. The student should produce a table similar to the
following:

Based on the strategic group map in Illustration Capsule 3.1, who are Yuengling & Sons's closest
competitors? Between which two strategic groups is competition the strongest? Why do you
think no beer producers are positioned in the lower left corner of the map? Which company /
strategic group faces the weakest competit

Go to www.dell.com/leadership and read the sections dedicated to its board of directors and
corporate governance. Is there evidence of effective governance at Dell in regard to (1) accurate
financial reports and controls, (2) a critical appraisal of strategic action plans, (3) evaluation of
the strategic leadership ski

See if you can identify the value chain relationships that make the businesses of the following
companies related in competitively relevant ways. In particular, you should consider whether
there are cross-business opportunities for (1) Transferring skills/technology, (2) Combining
related value chain activities to ac

Describe the benefits of using an ERP system.

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What characteristics of environmental issues make these issues difficult to manage in an

organization? What makes these issues difficult to deal with on a personal level?

Do you think that individuals and societies have moral obligations toward other species, people
in other societies, and/or future generations of humans? Why?

Go to the investor relations website for Walmart (investors.walmartstores.com) and review past
presentations it has made during various investor conferences by clicking on the Events option in
the navigation bar. Prepare a one- to two-page report that outlines what Walmart has said to
investors about its approach to st

American Apparel, known for its hip line of basic garments and its provocative advertisements,
is no stranger to the concept of "doing it all." Concepts & Connections 6.2 describes how
American Apparel has made vertical integration a central part of its strategy. What value chain
segments has American Apparel chosen to

Review Microsoft's statements about its corporate citizenship programs at www.microsoft.com.

How does the company's commitment to CSR provide positive benefits for its stakeholders?
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Illustration Capsule 11.1 discusses Whirlpool Corporation's Operational Excellence initiative and
its use of Six Sigma practices. How did the implementation of the program change the culture
and mindset of the company's personnel? List three tangible benefits provided by the program.
Explain why a commitment to quality

One way to help achieve lean production systems is to employ flexible automated manufacturing
equipment and automated material handling systems. A natural result of such a move is that
fewer people are required in the process, an issue addressed regularly in negotiations with labor
unions. Do you think there is a con

Describe Google's customer value proposition and profit formula linked to its business model.
What strategies has Google relied upon to build competitive advantage in the industry?

Using your university library's subscription to Lexis-Nexis, EBSCO, or a similar database,

perform a search on "acquisition strategy." Identify at least two companies in different industries
that are using acquisitions to strengthen their market positions. How have these acquisitions
enhanced the acquiring companies' c

Using Google Scholar or your university library's access to EBSCO, Lexis-Nexis, or other
databases, search for recent articles in business publications on "culture change." Give examples
of two companies that have recently undergone culture change initiatives. What are the key
features of each company's culture-change

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Are the ERP systems discussed in the chapter appropriate for use in all firms? Explain.

Go to the company page for John Deere at

www.deere.com/wps/dcom/en_US/corporate/our_company/our_company.page. Click through
several of the tabs provided there (about us, citizenship, careers, etc.) to see what they reveal
about the company's culture. What do you think are the key features of their culture?

What does a SWOT analysis reveal about Equal Exchange's ability to seize market opportunities
and nullify external threats? Explain.

How should Tesla "manage" the delivery of the new Model 3 during the initial production ramp-
up? Think about this relative to where cars should be delivered geographically and how the
service process should be designed.

The SOT rule provides an optimal solution in a number of evaluation criteria. Should the
manager of a bank use the SOT rule as a priority rule? Why?

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Who would you consider a transformational leader? Why?

Prepare a one- to two-page analysis of a recent ethics scandal using your university library's
access to Lexis- Nexis or other Internet resources. Your report should (1) discuss the conditions
that gave rise to unethical business strategies and behavior and (2) provide an overview of the
costs resulting from the compan

What specific actions would you recommend to Equal Exchange's executive directors, worker-
owners, and board of directors concerning the company's future direction?

What core values or business principles has Jim Sinegal stressed at Costco?

How is the search industry changing? What forces seem most likely to bring about major change
to the industry within the next three to five years?

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Go to www.nytco.com/investors and check whether The New York Times ' recent financial
reports indicate that its business model is working. Does the company's business model remain
sound as more consumers go to the Internet to find general information and stay abreast of
current events and news stories? Is its revenue s

Go to the company websites for Intel (www.intc.com); Home Depot (corporate.homedepot.com);

and Avon (www.avoncompany.com) to find some examples of strategic and financial objectives.
Make a list of four objectives for each company, and indicate which of these are strategic and
which are financial.

Stihl is the world's leading manufacturer and marketer of chain saws with annual sales exceeding
$2 billion. With innovations dating to its 1929 invention of the gasoline-powered chain saw, the
company holds more than 1,000 patents related to chain saws and outdoor power tools. The
company's chain saws, leaf blowers, a

Using an environmental issue that you have heard about in the media or in your classes, list some
scientific facts and areas of uncertainty. If you wanted to set a positive leadership example on
this issue, what would you do?

What is your assessment of Equal Exchange's financial performance and condition? Is the
company in good financial shape? Why or why not? Use financial ratios in Table 4.1 to help
support your assessment.

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Prepare a brief analysis of the coffee industry using the information provided on the industry
trade association websites. Of the list of macro-economic factors found in Table 3.1 , which do
you think might be strategically relevant for this industry? On the basis of information provided
on the trade association websit

Identify the key success factors for businesses in the convenience store industry in Taiwan?

What recommendations would you make to Costco top executives regarding how best to sustain
the company's growth and improve its financial performance?

In the last couple of years, Liz Claiborne, Inc., has been engaged in efforts to turn around its
faltering Mexx chain. Use your favorite browser to search for information on the turnaround plan
at Mexx, and read at least two articles or reports on this subject. Describe in 1 to 2 pages the
approach being taken to turn

Which one of the three new service requirements would a dental spa least likely pass: service
experience fit, operational fit, or financial impact? Why?

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Implementing and executing a new or different strategy call for new resource allocations. Using
your university's access to Lexis-Nexis or EBSCO, search for recent articles that discuss how a
company has revised its pattern of resource allocation and divisional budgets to support new
strategic initiatives.

How does the macro-environmental context influence future strategic options?

What specific factors account for why Nucor has been so successful over the past several
decades? Do these factors have more to do with great strategy, great strategy execution, or great
leadership?

What does an analysis of Eastman Kodak's financial statements for 2007 - 2011 reveal about the
strength of its business model and strategy? Were any of its three business units stronger than
others? Explain.

What are the primary reasons that Eastman Kodak was forced into bankruptcy in 2012? Does it
appear that the company's restructuring will allow it to emerge from bankruptcy as a stronger
rival in the digital imaging and printing industry?

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Is Henkel's approach to strategy execution shaped sufficiently by its mission and values? How
does the company's approach to staffing the organization and building organizational capabilities
support its strategy? Does its approach to decision making support good strategy execution?
Why or why not?
How you describe HMI's financial situation? How does its performance compare to prior years?
the competition?

What key policies/practices/procedures underlie how Howard Schultz and Starbucks have
implemented and executed the company's strategy?

Does Walt Disney's portfolio exhibit good strategic fit? What value-chain match-ups do you see?
What opportunities for skills transfer, cost sharing, or brand sharing do you see?

What is Walt Disney Company's corporate strategy?

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What are the chief elements of Apple's overall competitive strategy? How well do the pieces fit
together? Is the strategy evolving?

What "values" does this company have? How well do they connect to the strategy and to the
manner in which the company conducts its business?

How well is Costco performing from a financial perspective? Do some number-crunching using
the data in case Exhibit 1 to support your answer. Use the financial ratios presented in Table 4.1
of Chapter 4 (pages 83-86) to help you diagnose Costco's financial performance.

What are the specific policies and operating practices that Nucor has employed to implement and
execute its low-cost provider strategy?

What is your assessment of Nucor's financial performance the past several years? How strong is
the company's financial condition?

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What is your assessment of the competitive strength of Kraft Foods' different business units?

What problems has Susan identified with the night shift operations of the Devil's Den? How well
does the management team perform such strategy execution processes as competency building,
shaping the culture, instituting policies and procedures, establishing control systems, developing
reward and discipline systems, and

Would you describe Tata Motors' international strategy as global, transnational, or multidomestic
strategy? Explain your answer. Does this appear to be the optimal strategy?

What are the driving forces in the convenience store industry in Taiwan?

What issues confront the company as of mid-2012? What should Starbuck's management be
worried about?
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What does a 9-cell industry attractiveness/business strength matrix displaying Kraft Foods'
business units look like?

Are Costco's prices too low? Why or why not?

Have Google's business model and strategy proven to be successful? Should investors be
impressed with the company's financial performance? How does the company's financial
performance compare to that of Microsoft, Apple, and Yahoo? Please conduct a financial
analysis to support your position.

Does it make good strategic sense for Apple to be a competitor in the computer, personal media
player, smartphone, and tablet computer industries? Are the value chain activities that Apple
performs in computers, personal media players, tablet computers and smartphones very similar
and "compatible" or are there very imp

Which one of the five generic competitive strategies discussed in Chapter 5 most closely
approximates the competitive approach that Starbucks is employing?

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How attractive are the prospects for future profitability of U.S. steelmakers? Should Nucor
consider expanding in this type of industry environment? Why or why not?

What are the primary competitive forces impacting U.S. steel producers in general and the
producers like Nucor that make new steel products via recycling scrap steel in particular? What
does a five-forces analysis reveal about competition in the U.S. steel industry?

What do you think of Costco's compensation practices? Does it surprise you that Costco
employees apparently are rather well-compensated? Better compensated than employees at Sam's
Club or BJ's?

How well is Costco performing from a strategic perspective? Does Costco enjoy a competitive
advantage over Sam's Club? Over BJ's Wholesale? If so, what is the nature of its competitive
advantage? Does Costco have a winning strategy? Why or why not?

What is your assessment of Starbucks financial performance during the 2007-2011 period?

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Prepare a SWOT analysis: what are the internal strengths and weaknesses of Tata Motors?
Identify competencies and capabilities that the company's major competitors are lacking. What
market opportunities does the company have and what threats can you identify that may
negatively impact the company's future?
What are the pros and cons of accepting the offer of the barons to assist in securing King
Richard's release from prison?

What is 7-Eleven's international strategy?

What is your evaluation of Starbucks social responsibility strategy? Is it sincere or just

something the company does and talks about to create a good public image? What grade would
you give Howard Schultz for the job he has done in trying to make Starbucks a great place to
work?

What should Susan do about her dilemma?

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How do textbook platforms that include online tutorials affect the customer value proposition of
textbooks? Does the addition of such online materials affect the profit formula for a textbook?
Explain.

What is your assessment of the competitive strength of Walt Disney's different business units?

What are Kodak's competitively important resources and capabilities? Which of its resources
have the greatest competitive power? Are any of its resources and capabilities able to pass all
four VRIN tests for sustainable competitive advantage? Have the company's resources and
capabilities been managed dynamically? Expla

What are the principal economic and business characteristics of the convenience store industry in
Taiwan?

What recommendations would you make to Google's top-management team to sustain its
competitive advantage in the search industry? How should it best capitalize on its strategic
initiatives in smartphones, cloud computing, emerging markets, and other ventures?

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How should Robin implement the recommended plan? What action steps will need to be taken to
make the recommended strategy work successfully?

What was Howard Schultz's original strategic vision for Starbucks? How many times has his
strategic vision changed or evolved into something different? Is his strategic vision for Starbucks
in 2011-2012 likely to undergo further evolution?

What problems does Robin Hood have? What issues need to be addressed?

Discuss the key elements of Eastman Kodak's business model in film photography. How did its
customer value proposition and profit formula for its digital image capture business differ from
its film business?
What is the financial condition of Tata Motors as indicated from case Exhibits 3 and 4? What is
its ability to meet short-term obligations? What advice can you offer to Tata's management based
on the information in the financial statement?

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Describe the culture at HMI. Would you characterize HMI's culture as healthy and largely
supportive of good strategy execution? Explain.

What action plan would you recommend to Robin?

Assess the company's financial condition and financial performance. Is PCSC in good financial
condition? Use the financial ratios highlighted in the text to support your assessment.

Based on your analysis and assessment of Nucor's situation, what issues does Nucor
management need to address?

Until 2003, HMI offered lifelong employment. How did this practice affect the company's ability
to staff the organization with managers and employees capable of executing the strategy? How
did this practice build the organizational capabilities required for successful strategy execution?

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Do Robin Hood and the Merrymen need a new mission? new performance targets? a new
strategy?

What does a 9-cell industry attractiveness/business strength matrix displaying Walt Disney's
business units look like?

How have the company's values shaped its strategy and approach to strategy execution? Provide
illustrations of how these values are reflected in company policies.

What driving forces do you see at work in this industry? Are they likely to impact the industry's
competitive intensity and profitability favorably or unfavorably?

What about expanding the band's operations to geographical areas to the north, south, east, and
west of Sherwood Forest as a way of rejuvenating revenues and cash flows?

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What are the key elements of Apple's strategy in computers, personal media players, tablet
computers, and smartphones? Have its strategies in its core businesses yielded success? Explain.

What is your assessment of the long-term attractiveness of the industries in Walt Disney's
business portfolio?
What is Susan's dilemma? What seems to influence her perceptions and behavior? What seems to
influence the perceptions and behaviors of other Devil's Den employees?

Why not try to end the campaign by killing the Sheriff?

What should Roberts do to save the State Fair of Virginia?

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What does a competitive strength assessment reveal about Apple's computer business, as
compared to the leaders in the personal computer industry? Use the methodology in Table 4.4 to
support your answer. Does it appear that the company's competitive positions in personal media
players and smartphones are stronger or wea

What recommendations would you make to Howard Schultz to sustain the company's growth and
support continued strong financial performance in the years ahead?

If Roberts were to recommend either of the bankruptcy options (Chapter 11 or 7), what would be
the "sunset" costs? Who would bear those costs?

What is your assessment of Apple Computer's financial performance the past three years? (Use
the financial ratios in the Appendix of the text as a guide in doing your financial analysis.)

Based on the data in case Exhibits 1, 5, and 6, is Costco's financial performance superior to that
at Sam's Club and BJ's Wholesale?

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What actions do you recommend that Kraft Foods management take to improve the company's
performance and boost shareholder value after the spinoff of its North American grocery
business? Your recommended actions must be supported with convincing, analysis-based
arguments.

Throughout its history what various strategies did Kodak employ? What was Kodak's strategy
prior to 2012?

Has Howard Schultz done a good job since his return as Starbucks' CEO? Why or why not?
What evidence can you cite in support of your position?

Describe Herman Miller's strategy. Is there evidence it has produced a competitive advantage
and good financial performance? Explain.

What is Kraft Foods Inc.'s corporate strategy? How has its corporate strategy evolved since its
independence in 2007?

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What are the company's key resources and competitive capabilities? What competi-tive liabilities
and resource weaknesses does it have? What opportunities exist? What threats to its continued
success are present?

Based on your analysis of the company and the industry, describe the most significant problems
or issues facing 7-Eleven in Taiwan.

What is your overall evaluation of Kraft Foods' corporate strategy and planned restructuring in
2012? What evidence and/or reasons support a conclusion that Kaft Foods' shareholders will or
will not benefit from the spinoff of the company's North American grocery business?

What is your assessment of the long-term attractiveness of the industries represented in Kraft
Foods' business portfolio?

What actions do you recommend that Walt Disney Company's management take to improve the
company and increase shareholder value? Your recommended actions must be supported with a
convincing, analysis-based argument.

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What strategic options does Robin Hood have?

Describe economic characteristics of the global motor vehicle industry.

What do you consider to be the most important problems and issues facing Tata Motors, based
on your analysis of company and the global motor vehicle industry? Prioritize these problems
and issues beginning with the most important.

What is competition like in the North American wholesale club industry? Which of the five
competitive forces is strongest and why? Use the information in Figures 3.4, 3.5, 3.6, 3.7, and
3.8 (and the related discussions in Chapter 3) to do a complete five-forces analysis of
competition in the North American wholesale cl

What recommendations would you make to Eastman Kodak to bolster its standing in the
commercial and consumer printing industry? What should be done to strengthen the company's
competitive position in its other segments and improve its financial performance?

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Do non-monetary benefits facilitate strategy execution at HMI? Explain.

What is your assessment of Walt Disney Company's financial and operating performance in
fiscal years 2010-2011? What is your assessment of the relative contribution of the Disney SBUs
to the financial strength of Disney, based on the 2011 fiscal year financial data?

What recommendations would you make to Dan DiMicco?

What recommendations would you make to allow Apple to strengthen its position in its most
important markets? What steps should it take to ensure that the iPad becomes a success in the
marketplace and a major contributor to the company's overall performance?

Which, if any, of Nucor's resource strengths and capabilities qualify as core or distinctive
competencies?

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What are the key success factors for a successful firm in the global motor vehicle industry?

What are the driving forces in the global motor vehicle industry?

What are the relative strengths of the five competitive forces affecting the global automobile
industry?

Describe the competing business models of traditional textbooks and etextbooks. How do the
customer value propositions of the two textbook formats compare? How are the profit formulas
of paper textbooks and etextbooks different?

Why is Curry Roberts torn?

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What recommendation would you make to Herman Miller's CEO Brian Walker to improve the
company's current financial performance? Does the company need to radically alter its strategy
because of poor economic conditions? Should it improve its approach to implementing the
strategy to reduce costs and improve efficiency? Ex

Does it make sense to impose a fixed transit tax to counter the decline in revenues?

If it is able to forestall both of the two bankruptcy options, what elements of SFVA governance
need to be preserved or changed?

What does a SWOT analysis reveal about Nucor's situation? Does Nucor have any core or
distinctive competencies?

What would you suggest to PCSC and the 7-Eleven management team in Taiwan to help the
franchise improve its competitive position in the Taiwanese market?

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Does Kraft Foods' portfolio exhibit good strategic fit? What value-chain match-ups do you see?
What opportunities for skills transfer, cost sharing, or brand sharing do you see?
The following table lists the closing stock prices for three financial firms-Morgan Stanley,
Citigroup Inc. and PNC Bank-for Friday, June 19, 2015. The table also includes the most recent
dividends paid to shareholders by these firms. Fill in the blank cells in the table by computing (a)
the value of 100 shares of eac

The following graph shows the situation after the U.S. government removes a tariff on imports of
canned tuna. a. Which areas show the gain in consumer surplus? b. Which area shows the loss in
producer surplus? c. Which area shows the loss in government tariff revenue? d. Which areas
show the gain in economic surplu

Has Starbuck's strategy evolved as the strategic vision has evolved?

What actions would your suggest to the company's management team to help Tata Motors
improve its competitive position in its domestic Indian market, and in the global market, and its
long-term financial performance?

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What type of strategy has Nucor followed? Which of the five generic strategies discussed in
Chapter 5 is Nucor employing? Is there any reason to believe that Nucor has achieved a
sustainable competitive advantage over many of its steel industry rivals? If so, what type of
competitive advantage does Nucor enjoy?

Hal Varian, chief economist at Google, has made the following two observations about
international trade. a. Trade allows a country "to produce more with less." b. "There is little
doubt who wins [from trade] in the long run: consumers." Briefly explain whether you agree
with either or both of these observations.

Go to wsj.com and find the dividend per share for each of the following firms. a. Microsoft b.
Apple c. Coca-Cola d. Facebook To find the dividend per share, enter the company's name in the
search box on the home page. Which pays the highest dividend? Which has the highest dividend
yield? Which does not pay a divi

An Associated Press article noted that some groups have filed law suits over what the groups
describe as "overzealous licensing schemes, in occupations such as hair braiders, yoga teachers
and casket makers." a. What effect might such government licensing requirements have on the
rate of new businesses being formed?

Briefly discuss how economists explain the rapid increases in health care spending.

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Suppose that shortly after graduating from college, you decide to start your own business. Will
you be likely to organize the business as a sole proprietorship, a partnership, or a corporation?
Explain your reasoning.
Suppose the government is considering imposing either a tariff or a quota on canned peaches.
Assume that the proposed quota has the same effect on the U.S. price of canned peaches as the
proposed tariff. Use the graph to answer the following questions. a. If the government imposes a
tariff, which area shows the govern

What is limited liability? Why does the government grant limited liability to the owners of
corporations?

Instagram is a smartphone app that Facebook now owns. According to an article that discusses
the climate for software firms in the San Francisco Bay Area, the success of Instagram "is a tale
about the culture of the Bay Area tech scene, driven by a tightly woven web of entrepreneurs and
investors who nurture one anothe

In a letter to his company's stockholders, Warren Buffett offered the following opinion: "Most
investors, of course, have not made the study of business prospects a priority in their lives. . . . I
have good news for these non-professionals: The typical investor doesn't need this skill." Briefly
explain Buffett's reaso

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Michael Dell founded PCs Limited in 1984. The firm had an initial public offering (IPO) in
1988, under the name Dell Computer Corporation, which enabled the company to raise money it
used for expansion. In 2013, Michael Dell and a private equity firm bought back ownership of
the company from its shareholders. Dell is n

Some economists and policymakers have argued that one way to control federal government
spending on Medicare is to have a board of experts decide whether new medical technologies are
worth their higher costs. If the board decides that they are not worth the costs, Medicare would
not pay for them. Other economists and p

The principal-agent problem arises almost everywhere in the business world, and it also crops up
even closer to home. Discuss the principal-agent problem that exists in the college classroom.
Who is the principal? Who is the agent? What potential conflicts in objectives exist between this
principal and this agent?

What are the three major types of firms in the United States? Briefly discuss the most important
characteristics of each type.

President Barack Obama described a trade agreement reached with the government of Colombia
as a "'win-win' for both our countries." Is everyone in both countries likely to win from the
agreement? Briefly explain.

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An article in the New Yorker states, "the main burden of trade-related job losses and wage
declines has fallen on middle- and lower-income Americans. But ... the very people who suffer
most from free trade are often, paradoxically, among its biggest beneficiaries." Explain how it is
possible that middle- and lower-inco

Patrick J. Buchanan, a former presidential candidate, argued in his book on the global economy
that there is a flaw in David Ricardo's theory of comparative advantage: Classical free trade
theory fails the test of common sense. According to Ricardo's law of comparative advantage ... if
America makes better computers a

An article on forbes.com about corporate fraud stated that "misleading accounting and disclosure
practices weaken the integrity of capital markets." The article noted that using incentive
contracts for top managers can create a "'perverse' incentive to manipulate stock prices because
their (executive) total package is

How is the separation of ownership from control related to the principal-agent problem?

What is a tariff? What is a quota? Give an example, other than a quota, of a nontariff barrier to
trade.

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In the United States, what has been the trend in health care spending as a percentage of GDP?
Compare the increases in health care spending per person in the United States with the increases
in health care spending per person in other high-income countries. What implications do current
trends in health care spending ha

We saw in the chapter opener that the T. Cain Grocery offers its employees a health care plan
with a high deductible of $4,500 per year. What effect do high-deductible plans have on how
often employees visit doctors or otherwise use health care services? If the federal government
were to require that employer health ca

How do the stock and bond markets provide information to businesses? Why do stock and bond
prices change over time?

If the United States were to stop trading goods and services with other countries, which U.S.
industries would be likely to see their sales decline the most? Briefly explain.

A column in the Wall Street Journal listed "trying to forecast what stocks will do next" as one of
the three mistakes investors make repeatedly. Briefly explain why trying to forecast stock prices
would be a mistake for the average investor.

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If you deposit $20,000 in a savings account at a bank, you might earn 1 percent interest per year.
Someone who borrows $20,000 from a bank to buy a new car might have to pay an interest rate
of 6 percent per year on the loan. Knowing this, why don't you just lend your money directly to
the car buyer and cut out the ban

What arguments do economists and policymakers who believe that market-based reforms are the
key to improving the health care system make in criticizing the ACA?

Why might a smaller country, such as the Netherlands, be more likely to import and export larger
fractions of its GDP than would a larger country, such as China or the United States?

Paolo currently has $100,000 invested in bonds that earn him 10 percent interest per year. He
wants to open a pizza restaurant and is considering either selling the bonds and using the
$100,000 to start his restaurant or borrowing $100,000 from a bank, which would charge him an
annual interest rate of 7 percent. He fin

Go to the Web site of the Federal Reserve Bank of St. Louis (FRED) (research.
stlouisfed.org/fred2/) and download and graph the data series for the Nasdaq Composite Index
from February 1971 until the most recent day available. Go to the Web site of the National
Bureau of Economic Research (nber. org) and find the dates

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An article in the New York Times quoted an economist as arguing that "global free trade and the
European single market ... encourage countries to specialize in sectors where they enjoy
comparative advantage. Germany's [comparative advantage] is in cars and machine tools." For
the author's observation to be correct, mus

What was the source of the problems encountered by many financial firms during the crisis of
2007-2009?

Dane decides to give up a job earning $200,000 per year as a corporate lawyer and converts the
duplex that he owns into a UFO museum. (He had been renting out the duplex for $20,000 a
year.) His explict costs are $75,000 per year paid to his assistants and $10,000 per year for
utilities. Fans flock to the museum to see

Private equity firms, such as Blackstone and Kohlberg Kravis Roberts & Co., search for firms
where the managers appear not to be maximizing profits. A private equity firm can buy stock in
these firms and have its employees elected to the firms' boards of directors and may even acquire
control of the targeted firm and r

Improvements in technology usually result in lower costs of production or new and improved
consumer goods and services. Assume that an improvement in medical technology results in an
increase in life expectancy for people 65 years of age and older. How would this technological
advance be likely to affect expenditures o

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Are imports and exports now a smaller or larger fraction of GDP than they were 40 years ago?

New Balance manufactures shoes in the United States, so you might expect that the firm would
benefit from a tariff on shoes. Yet New Balance did not actively oppose the Obama
administration's attempts to eliminate the shoe tariff imposed on countries that would be part of
the Trans-Pacific Partnership. Briefly explain

What arguments do economists and policymakers who believe that the federal government
should have a larger role in the health care system make in criticizing the ACA?

Use the information in the following table on the financial situation of Starbucks Corporation as
of September 28, 2014 (the end of the firm's financial year), to prepare a balance sheet for the
firm. Be sure to include an entry for stockholders' equity. Current
assets..........................................$4,169 m

What does it mean to say that there is a separation of ownership from control in large
corporations?

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Jay Ritter, a professor at the University of Florida, was quoted in the Wall Street Journal as
saying about Facebook: "It's entirely possible for a company to have solid growth prospects
while its stock is overvalued." a. What does it mean to say that a stock is "overvalued"? b. Why
might a firm's stock be overvalued

Suppose that a firm in which you have invested is losing money. Would you rather own the
firm's stock or the firm's bonds? Briefly explain.

What are the main sources of comparative advantage?

Investors use the bond ratings from Moody's, S&P, and Fitch to determine which bonds they will
buy and the prices they are willing to pay for them. The rating services charge the firms and
governments that issue bonds, rather than investors, for their services. Critics argue that the
rating agencies may give higher rat

Use the information in the following table for calendar year 2014 to prepare an income statement
for McDonald's Corporation. Be sure to include entries for operating income and net income.
Revenue from company restaurants..................................$18,169 million Revenue from
franchised restaurants............
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The text refers to health care as a normal good. Briefly explain why. In the future, is it possible
that health care in the United States could become an inferior good? Briefly explain how it would
be possible to tell if this change had occurred.

Does everyone gain from international trade? If not, explain which groups lose.

Using the numbers in the table, explain which country has a comparative advantage in producing
smartwatches.

A World Trade Organization (WTO) publication calls comparative advantage "arguably the
single most powerful insight in economics." What is comparative advantage? What makes it
such a powerful insight?

Briefly explain whether you agree with the following argument: "Unfortunately, Bolivia does not
have a comparative advantage with respect to the United States in the production of any good or
service."

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Were the shares of stock issued as a result of Twitter's initial public offering (IPO) sold in a
primary market or a secondary market? Was the IPO an example of direct finance or indirect
finance?

In a public corporation, the principal-agent problem between ownership and top management
results from asymmetric information. What information, if known, would prevent this principal-
agent problem?

The current ratio is equal to a firm's current assets divided by its current liabilities. Use the
information in Figure 8A.2 on page 281 to calculate Twitter's current ratio on December 31,
2014. Investors generally prefer that a firm's current ratio be greater than 1.5. What problems
might a firm encounter if the valu

The following table shows the hourly output per worker for Greece and Italy measured as quarts
of olive oil and pounds of pasta. Calculate the opportunity cost of producing olive oil and pasta
in both Greece and Italy.

While running for president, Barack Obama made the following statement: "Well, look, people
don't want a cheaper T-shirt if they're losing a job in the process." What did Obama mean by the
phrase "losing a job in the process"? Using the economic concept of comparative advantage,
explain under what circumstances it woul

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Before the start of the 2000 baseball season, the New York Mets decided that they didn't want
Bobby Bonilla playing for them any longer. But Bonilla had a contract with the Mets for the
2000 season that would have obliged the Mets to pay him $5.9 million. When the Mets released
Bonilla, he agreed to take the following

Before the 2013 season, the Los Angeles Angels signed outfielder Josh Hamilton to a contract
that would pay him an immediate $10 million signing bonus and the following amounts: $15
million for the 2013 season, $15 million for the 2014 season, $23 million for the 2015 season,
$30 million for the 2016 season, and $30 mi

Salespeople, whether selling life insurance, automobiles, or pharmaceuticals, typically get paid
on commission instead of a straight hourly wage. How does paying a commission help solve the
principal-agent problem between the owners of a business and their salespeople?

Suppose the graph on the next page shows Tanzania's production possibilities frontier for cashew
nuts and mangoes. Assume that the output per hour of work is 8 bushels of cashew nuts or 2
bushels of mangoes and that Tanzania has 1,000 hours of labor. Without trade, Tanzania evenly
splits its labor hours between cashews

Suppose that the United States currently both produces kumquats and imports them. The U.S.
government then decides to restrict international trade in kumquats by imposing a quota that
allows imports of only 6 million pounds of kumquats into the United States each year. The figure
shows the results of imposing the quota

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Two economists at the Brookings Institution argue that "new firms rather than existing ones have
accounted for a disproportionate share of disruptive and thus highly productivity enhancing
innovations in the past-the automobile, the airplane, the computer and personal computer, air
conditioning, and Internet search, to

What effect would the following events be likely to have on the price of Google's stock? a. A
competitor launches a search engine that is better than Google's. b. The corporate income tax is
abolished. c. Google's board of directors becomes dominated by close friends and relatives of its
top management. d. The pric

What is the difference between a firm's balance sheet and its income statement?

What is the difference between direct finance and indirect finance? If you borrow money from a
bank to buy a new car, are you using direct finance or indirect finance?

In the 2012 Summer Olympic Games, Ashton Eaton (from the United States) won a gold medal
in the decathlon, which requires athletes to compete in 10 different track and field events. In one
of these events Eaton ran a 100-meter race in 10.35 seconds. In a separate event, Usain Bolt
(from Jamaica) won a gold medal and se

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According to an article in the Wall Street Journal, in May 2015, Moody's Investors Service cut
its rating on McDonald's bonds from A3 to A2. a. What is Moody's top bond rating? Under what
circumstances would Moody's, or the other bond rating agencies, be likely to cut the rating on a
firm's bonds? b. What will be the

Who gains and who loses when a country imposes a tariff or a quota on imports of a good?

For several years, the United States imposed a tariff on tire imports. According to an analysis by
economists Gary Clyde Hufbauer and Sean Lowry of the Petersen Institute, of the additional $1.1
billion consumers spent on tires as a result of the tariff on Chinese tires, the workers whose jobs
were saved in the U.S. ti

Twitter was founded in 2006, but it wasn't until 2013 that Twitter filed its first annual report with
the Securities and Exchange Commission (SEC). Briefly explain why.

Briefly explain whether the value of U.S. exports is typically larger or smaller than the value of
U.S. imports.

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Would a business be expected to survive in the long run if it earned a positive accounting profit
but a negative economic profit? Briefly explain.

According to an article in the Economist, historian David Faure has argued that the Chinese
economy failed to grow rapidly during the nineteenth century because "family-run companies ...
could not raise sufficient capital to exploit the large-scale opportunities tied to the rise of the
steam engine, notably railways an

Evaluate the following argument: I would like to invest in the stock market, but I think that
buying shares of stock in a corporation is too risky. Suppose I buy $10,000 of Twitter stock, and
the company ends up going bankrupt. Because as a stockholder I'm part owner of the company, I
might be responsible for paying h

Why is limited liability more important for firms trying to raise funds from a large number of
investors than for firms trying to raise funds from a small number of investors?

The following is from an article in USA Today: In what some call a worldwide corporate
governance movement, shareholders are pushing for stronger corporate-governance laws,
teaming with investors from different countries and negotiating behind the scenes with
businesses. What is corporate governance? Why would shareh