The External Business Environment Consists of All the Elements Outside

question 73

True/False

The external business environment consists of all the elements outside a company that can affect its performance.

Discern between strategies based on the scope of competitive advantage and market targeting.

Analyze the importance of combining competitive scope with either a cost or differentiation emphasis.

Apply the concepts of generic business strategies to modern examples and assess their efficacy.

Explain the concept of a blue ocean strategy and how it differs from traditional competitive strategies.

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Definitions:

"A bird in hand"

A principle implying that it is better to have a certain, smaller benefit now than a possibility of a greater benefit later, often used in dividend policy discussions.

Future Earnings

Projected or anticipated profits a company expects to earn in future periods, often used for valuation purposes.

Short-Term Benefit

Refers to immediate rewards or perks provided to employees, including bonuses, sick leave, and temporary incentives.

Long-Term Benefit

Advantages or positive outcomes that accrue over an extended period, often associated with investments or strategic business decisions.