The Analysis of the Activity Map of a Successful Company

question 5

Multiple Choice

The analysis of the activity map of a successful company such as Southwest Airlines emphasizes how

• A)the organizational culture of Southwest Airlines is the key to the success of the organization.
• B)understanding of the profit pool in an industry indicates to companies where above-average returns can be earned.
• C)it is hard for rivals to match a configuration of integrated activities than to imitate a single activity.
• D)the primary and support activities of a successful company capture value all along the value chain.

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Definitions:

Monopsonist

A market condition where there is only one buyer facing many sellers, often leading to lower prices for suppliers.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital, holding all other factors constant.

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the public sector.

Tax Imposed

The act of levying or enforcing a financial charge or other levy upon a taxpayer by a governmental organization.