Sizing Up a Company's Complement of Resource Strengths and Weaknesses

question 98

Multiple Choice

Sizing up a company's complement of resource strengths and weaknesses:

• A) is akin to constructing a "strategic balance sheet" where strengths represent competitive assets and weaknesses represent competitive liabilities.
• B) is called benchmarking.
• C) is called competitive strength assessment.
• D) is focused squarely on ascertaining whether the company has more/less resource strengths than weaknesses.
• E) is called company resource mapping.

---

Definitions:

NPV

NPV is a calculation that determines the expected financial profitability of a given investment or project by assessing the difference between the current value of all incoming and outgoing cash flows.

Positive NPV Projects

Projects with a net present value greater than zero, indicating they are expected to generate profit over their lifetime.

Target Cash Balance

The optimal amount of cash that a company aims to hold for operational and precautionary purposes.

Carrying Costs

Expenses associated with holding or carrying inventory, including storage, insurance, taxes, and opportunity costs.