Chapter One Introduces Two Different Models That Can Help Companies

question 20

Multiple Choice

Chapter one introduces two different models that can help companies select and implement the most effective strategy. Which of these models suggests that managers should select the most attractive industry and then use the strategy called for by environmental conditions in that industry?

• A) The resource-based view of the firm (RBV) model
• B) The competitive dynamics (CD) model
• C) The model of strengths, weaknesses, opportunities and threats (SWOT)
• D) The industrial organization (I/O) model

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Definitions:

Investor Liability

Refers to the legal and financial responsibilities borne by investors, including potential losses or debts incurred from investments.

Statutory Minimum

The lowest amount or level that is legally allowed, often referring to wages, working conditions, or environmental standards.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation.

Monopolies

Market situations where a single entity exclusively controls a commodity or service, limiting competition.