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Scenario - QT.com Faced with Rapidly Growing Business, Quick Trade, Inc., a Global

question 86

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Scenario - QT.com
Faced with rapidly growing business, Quick Trade, Inc., a global brokerage company with the largest market share, recently announced that they have established an on-line stock investment and trading subsidiary, QT.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-Quick Trade is following which strategy, according to Porter, through the .com subsidiary?

Learn how common-sized financial statements are prepared and analyzed.

Recognize the implications of changes in financial ratios over time.

Understand the relationship between financial analysis and business decision-making processes.

Develop skills in interpreting the effects of financial decisions on ratios and overall company performance.

Definitions:

Individual Creativity

The unique capability of a person to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others.

Inventions

New and unique devices, methods, or processes developed through creativity and technological innovation.

Monroe Doctrine

A United States policy declared in 1823, opposing European colonization in the Americas and stating that any intervention in the politics of the Americas by foreign powers would be seen as a hostile act.

European Powers

Refers to the leading countries in Europe, historically recognized for their global influence and colonial activities.