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    mission and values align with the employee’s mission and values. C. the firm is in a high tech industry. D. the mission and values of the organization change often. 24. Many successful firms use internal labor markets. The most important reason they do this is because A. they want to encourage job rotation. B. if an employee is in the same department for too long‚ he/she would become indispensable. higher than firms that achieve either a cost or a differentiation advantage. TEAMF‚G 19

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    Economies of scale are the advantages in average cost reductions that can be achieved through the growth of a plant‚ firm‚ or an entire industry. There are various different types of economies of scale‚ all of which can be grouped together into either internal or external. Internal economies occur within a plant or firm‚ and external economies are the consequence of the growth of the entire industry or region. Economies of scale are therefore the advantages of a growth. However‚ we must also consider

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    Economics from the University College London. He joined the Department of Economics at the University of Southampton in 1952 as an assistant lecturer and earned the position of senior lecturer in 1962. In 1953 Dunning began research on the FDI of American firms into the UK and its affect on UK economic performance‚ which resulted in the seminal 1958 book American Investment in British Manufacturing Industry. In 1964 Dunning was appointed Foundation Chair of Economics at the University of Reading. During his

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    improve market position‚ firms have to advance with times by executing all kinds of strategies‚ one of which is acquisition. “An acquisition resembles more of an arm’s-length deal‚ with one firm purchasing the assets or shares of another‚ and with the acquired firm’s shareholders ceasing to be owners of that firm” (Sudarsanam‚ 2003). Serving as an important capital restructuring tool‚ acquisition offers firms a conceivable opportunity for development by taking over another firm economically and legally

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    Strength is basically what a company or a firm is good at or does better in order to be more efficient. And it might not necessarily be a competitive advantage but it becomes a basis to develop sustainable competitive advantages. Firms can assess which strengths have potential to be sustainable competitive advantage. A competitive advantage is what enables a business organization to thrive and to offer a superior service over and above its competitors. It is the objective of strategy and it is also

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    Barney SMCA4 03

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    analysis helps a firm: • determine if its resources and capabilities are likely sources of competitive advantage • establish strategies that will exploit any sources of competitive advantage Copyright © 2012 Pearson Education‚ Inc. publishing as Prentice Hall. 3-3 Evaluating a Firm’s Internal Capabilities The Theory Behind Internal Analysis The Resource-Based View • developed to answer the question: Why do some firms achieve better economic performance than others? • used to help firms achieve competitive

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    potential means used by suppliers to exert power over firms competing within an industry. A firm should try to recover cost increased by its suppliers through its own pricing structure or its profitability is reduced by its suppliers’ actions. A supplier group is powerful when: • It is dominated by a few large companies. •

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    1. Introduction There is an abundance of models and theories which describe and explain internationalization‚ foreign entry modes and the foreign operations of firms (Elo‚ 2005). These models can be divided into two different perspectives: behavioural and economic (Elo‚ 2005‚ p.65). It is also suggested that the literature based on economic theory‚ which focuses on new market opportunities‚ internationalization‚ vertical integration and corporate growth‚ has been dominating. Whereas‚ behavioural

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    Discussion Questions 1. Comment on the following from the owner of a successful plywood mill. “Firms don’t use location theory to make location decisions. I chose this location for my plywood mill due to its proximity to my favorite fishing spot.” Firms do use location theory to make location decisions. The location that a firm chooses depends on where the transportation cost will be the lowest. A firm that is resource-oriented will locate closest to the raw materials site because the cost to transport

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    Ba 462 6-10

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    ______and how to manage these businesses. a.whether the firm should invest in global or domestic businessesb. what product markets and businesses the firm should be inc. whether the portfolio of businesses should generate immediate above-average returns or should be troubled businesses which will create above-average returns only after restructuringd. whether to integrate backward or forward. | b. what product markets and businesses the firm should be in (p.158) | The ultimate test of the value

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