Using Strategic Activity Systems a Competitor Can Observe 25 Activities

question 37

Multiple Choice

Using strategic activity systems a competitor can observe 25 activities of Firm A If Firm B decides to imitate Firm A with a 90% accuracy rate, the probability of copying the whole system of 25 activities yields only a 7% accuracy rate.Which framework below is most effective at demonstrating the difficulty of imitating a firm with 25 interconnected activities?

• A) Strategic activity system
• B) VRIO framework
• C) Value chain analysis
• D) SWOT analysis

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Definitions:

Accounting Estimates

Assumptions made about future financial transactions that impact the reporting of a company's financial statements, such as allowances for doubtful accounts.

Cumulative Adjustment

An accounting method used to make corrections to cumulative errors in financial statements of previous years.

Prior Period Adjustments

Corrections of errors in previously issued financial statements for periods that have already been reported.

Retained Earnings

The portion of a company's net income that is kept within the company rather than distributed to shareholders as dividends.