George,a Chef and Owner of L'Auberge,a Popular Restaurant,is Always Visiting

question 31

Multiple Choice

George,a chef and owner of L'Auberge,a popular restaurant,is always visiting his competitors to observe how they are doing things in their restaurants.He told one of his managers,"I eat dinner at a lot of restaurants because I want to know what is going on.I am always concerned that one of our competitors will surprise us with a new service or menu item,like ours but better." In which activity is George engaging?

• A)competitive intelligence
• B)environmental scanning
• C)TQM
• D)corporate spying
• E)management by observation

---

Definitions:

Margin

Describes profit as the difference between sales and the costs of goods sold, often expressed as a percentage of sales.

Return on Investment

A measure of the profitability of an investment, calculated as the net gain from an investment divided by the cost of the investment.

Average Operating Assets

The average value of the assets utilized to generate revenue during a specific period, often calculated by averaging the beginning and ending asset values for the period.

Stockholders' Equity

The equity held by shareholders in a company, calculated as the company's assets minus its outstanding debts, representing their residual ownership.