Scenario 2.1 Blockbuster Canada Was the First of Its Kind in Canada

question 22

Multiple Choice

Scenario 2.1
Blockbuster Canada was the first of its kind in Canada in the movie and games rental business and operated for more than 21 years. However, with the advent of more modern technology accessible mainly through Netflix and Rogers On Demand, Blockbuster struggled to stay relevant in a tech-savvy environment where videos and games could now be rented conveniently from the comfort of one's couch via computer or TV. Despite efforts to try to stay relevant, Blockbuster did not leverage technology that had become an important part of their consumer base's daily lives. As a result, Blockbuster was not able to fight off the competition.
-Refer to Scenario 2.1. To remain competitive, Blockbuster Canada needed to systematically monitor the major external forces influencing the movie/game rental business. Which of the following would be important to its success?

• A) analysis of the internal environment
• B) environmental scanning
• C) changes in demographics
• D) changes in its mission, vision, and values

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Definitions:

Nominal Rate

The interest rate before adjustments for inflation, which reflects the percentage change in money supply but not the purchasing power.

Real Rate

The real rate is the rate of interest an investor expects to receive after allowing for inflation, reflecting the actual purchasing power of the returns.

Inflation Rate

The speed at which the overall price level of goods and services increases, leading to a reduction in buying power.

Annual Coupon Bonds

Bonds that pay interest to bondholders once a year until maturity, at which point the principal is repaid.