The Difficulties Faced by Eastman Kodak,Smith Corona

question 31

Multiple Choice

The difficulties faced by Eastman Kodak,Smith Corona.and Olivetti in adapting to radical technological change within their markets point to:

• A)The short-sightedness of senior managers in recognizing the implications of new technologies.
• B)The power of digital technology as a force for creative destruction.
• C)The need for firms to devote more resources to technological forecasting.
• D)The difficulties established firms experience in building the new capabilities.

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Definitions:

Class A Spa

An upscale facility offering premium health and beauty treatments, differentiated by service, amenities, or exclusivity criteria.

Present Value

The worth at present of a sum of money expected in the future or of ongoing cash payments, when discounted at a specific rate of return.

Capital Cost Allowance (CCA)

A form of tax depreciation that allows a business to deduct the cost of a depreciable property, such as buildings or equipment, over a number of years.

Fixed Assets

Long-term tangible pieces of property or equipment that a firm owns and uses in its operations to generate income.