Quantitative Measures of a Company's Competitive Strength

question 99

Multiple Choice

Quantitative measures of a company's competitive strength

• A)signal which competitor has the most distinctive competencies and which competitor has the fewest.
• B)provide useful indicators of how a company compares against key rivals, factor by factor and capability by capability-thus indicating whether the company has a net overall competitive advantage or disadvantage against each rival.
• C)reveal which competitors are in the best and worst strategic groups.
• D)show which industry rival has the best overall market opportunities and which competitor has the poorest market opportunities.
• E)pinpoint which industry rival is subject to the least amount of competitive pressures from the five competitive forces.

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Definitions:

Gross Method

An accounting method for recording purchases at the invoice's gross amount before any trade discounts are subtracted.

Net Method

A way to record purchases of inventory with a discount for early payment, where the purchase is recorded at the net of the discount and the discount is lost if not taken.

Net Approach Method

A pricing method where the net price after all discounts is shown in the invoice.

Periodic Inventory System

An inventory valuation method where the inventory is physically counted at specific intervals and the cost of goods sold is calculated thereafter.