Having Good Competitive Intelligence About Rivals' Strategies and Moves to Improve

question 44

Multiple Choice

Having good competitive intelligence about rivals' strategies and moves to improve their situation is important because:

• A) it identifies who the industry's current market share leaders are.
• B) it allows a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence about what market maneuvers to expect from its rivals.
• C) good scouting reports help identify which rival is in which strategic group.
• D) it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes.
• E) it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing.

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Definitions:

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.

Quick Ratio

A financial ratio that measures a company’s ability to meet its short-term obligations with its most liquid assets.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing the net income or loss.

Return On Stockholders' Equity

A measure of financial performance calculated by dividing net income by average shareholders' equity, showing how effectively management uses equity from shareholders to generate profit.