Scenario C

question 36

Multiple Choice

Scenario C.Parker Brothers is a high-end furniture manufacturer located in the Midwest.Mr.Herbert "Bud" Parker started the firm as a young man in the 1960s.The firm has grown,but with growth,it has never forgotten the vision of Mr.Parker: to be creative in all that the firm does while rewarding employees who show innovation and entrepreneurial leadership.Each year the Budding Genius Award is given to the employee who comes up with the best design or marketing idea.New employees are told of the organization's history of product innovation and are taken on a tour of the "Wall of Parker Legends," where pictures of outstanding employees are hung with descriptions of their accomplishments.Managers at the firm encourage their team members to take risks in proposing new ideas.The company prides itself on its product leadership.
-The stories about the "Parker Legends" and the organization's most innovative designs are all clues to understanding the

• A)organization culture.
• B)company's macroenvironment.
• C)organization's competitive environment.
• D)collective competitive intelligence.
• E)organizational structure.

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Definitions:

Sunk Costs

Expenses that have been incurred and cannot be recovered, regardless of future actions.

Competitive Market

A market structure where many buyers and sellers exchange homogeneous products and no single participant has the power to significantly influence the price of the product.

Economic Profits

The difference between the total revenue earned by a business and the total costs (both explicit and implicit) of all inputs used, representing the additional gain over and above the opportunity costs.

Accounting Profits

The difference between total revenue and explicit costs; essentially the bottom line of a company's income statement.