The Value of Doing Competitive Strength Assessment Is to

question 111

Multiple Choice

The value of doing competitive strength assessment is to

• A) determine how competitively powerful the company's core competencies are.
• B) learn if the company's market opportunities are better than those of its rivals.
• C) learn whether a company has a distinctive competence.
• D) learn how the company ranks relative to rivals on each of the important factors that determine market success and ascertain whether the company has a net competitive advantage or disadvantage vis-à-vis key rivals.
• E) determine whether a company's resource strengths are sufficient to allow it to earn bigger profits than rivals.

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Definitions:

Temporary Excess Cash

Surplus cash not required for immediate operational or investment needs, often invested in short-term securities.

Invest

The act of allocating resources, usually money, in order to generate an income or profit.

Additional Staff

The employment of extra personnel beyond the current number to meet increased demands or to fulfill specific roles within an organization.

Total Collection Time

The total period it takes for a business to convert its accounts receivable into cash.