The Basic Purpose of Calculating Competitive Strength Scores for Each

question 94

Multiple Choice

The basic purpose of calculating competitive strength scores for each of a diversified company's business units is to:

• A) rank the business unit from best to worst in terms of potential for cost reduction and profit margin improvement.
• B) determine how strongly positioned each business unit is in its industry.
• C) determine which business unit has the greatest number of resource strengths,competencies,and competitive capabilities,and which one has the least.
• D) determine which one has the biggest market share and is growing the fastest.
• E) rank each business unit's strategy from best to worst.

Recognize the importance of professional advice (legal, financial) when entering into franchise agreements.

Understand the historical development of franchising and its impact on the economy.

Recognize the significance of exclusive territories and how they affect franchise operations.

Understand the key considerations and questions a potential buyer should explore before purchasing a franchise.

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Definitions:

Text Messaging

The act of composing and sending brief electronic messages between two or more mobile devices or fixed or portable devices over a phone network.

Hand-Held Cellular

A portable device, often referred to as a mobile phone or smartphone, used for communication.

Cocktail Party Phenomenon

The capacity to concentrate one's listening efforts on a specific sound while ignoring other surrounding noises.

Posner Effect

A phenomenon in cognitive psychology indicating that attention can be directed to a location without the need for the eyes to move.