as a good tool to examine the internal environment of a firm. They state that VRIO “stands for four questions one must ask about a resource or capability to determine its competitive potential: 1. The Question of Value: Does a resource enable a firm to exploit an environmental opportunity‚ and/or neutralize an environmental threat? 2. The Question of Rarity: Is a resource currently controlled by only a small number of competing firms? [are the resources used to make the products/services or
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precisely using its own historical data. Exhibit 4 provides some choices for comparable firms. Which of these firms do you think are appropriate to use as comparables to determine the beta of Ameritrade’s planned advertising and technology investments? Why? 4. Using the stock price and return data in Exhibits 5 and 6‚ estimate the CAPM beta and Fama-French factor sensitivities for the stocks of comparable firms. 5. Estimate the weighted-average cost of capital for Ameritrade’s proposed expansion
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Powell (1990) Introduction Powell argues that previous research on economic organizations have focused on two kinds of structures‚ markets and hierarchies‚ but that these structures are inadequate to explain some complex interactions that occur in today’s business world. He suggests a new structure‚ called a
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Assignment #4: CHAPTER 3 - Why Do Firms Cluster? 2. Labor Pooling: What’s Fixed and Variable? Consider the model of labor pooling‚ with each firm locating either in an isolated site or in a cluster with other firms. Fill the blanks with "fixed" or "variable". A. In an isolated site‚ the wage is variable and the firm’s workforce is fixed because the supply of labor is perfectly inelastic. B. In a cluster‚ the wage is fixed and the firm’s workforce is variable because the supply of labor is
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cultural myopia & enhance local responsiveness * Develop unifying culture Disadvantage: * Expensive to implement Most MNCs operating in Singapore seems to be adopting the geocentric approach. This approach is most attractive as it enables firms to build a strong unifying culture‚ and cultural myopia is at its minimal within the company. Staffing policies that multi-national companies (MNCs) in Singapore adopt are the polycentric and geocentric policies. These policies are generally acceptable
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dumping their products on domestic markets at abnormally low prices by punishing them through several measures. From the firm-based consideration‚ there are two benefits of filing an antidumping case. First‚ firms can set a higher entry barrier for those leading foreign rivals so that they can protect their vested interests as well as maintain the market position. Then‚ firms who set an antidumping case may build a strong network with local government‚ as the government can gain the higher tariff
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Renault-Nissan: A Marriage of Desperation Turned Success Story Within both Renault and Nissan‚ there were significant issues facing the firms. Renault‚ a one time ‘losers league’ member‚ was able to turn itself into a $1.65 billion company. A distinctively French and European car maker‚ Renault had never run a global operation. At one point‚ the company sold no cars in the United States and only 2‚476 units in Japan‚ the world’s two largest automotive markets. Nissan‚ on the other hand‚ was basically
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weaknesses of ANZ and how effective their current marketing strategy is. The strengths of ANZ which have been identified in the case are their highly customised bankcards‚ their trustworthy image and reputation‚ knowledgeable staff and the size of the firm. ANZ’s weaknesses are that their products are quite easy to imitate due to such intangibility‚ they are at the bottom compared to their competitors‚ the communication gap occurring through the reposition of their new brand and the inflexibility due
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criteria for promoting an established discipline in the desired sectors‚ the most common act to follow is retreat. But as those firms hold back or constrain their efforts to accompany short term financial parameters‚ I believe that many experienced capitalists will retrieve heightened gains with several uncommon practices to boost capital. First‚ as mentioned in the article‚ the firm plans on expanding the number of stores that they now operate in many different countries. This is the most respected‚ in
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the acquiring and target firms have complementary resources that are the foundation for developing new capabilities; the acquisition is friendly‚ thereby facilitating integration of the firms’ resources; the target firm is selected and purchased based on through due diligence; the acquiring and target firms have considerable slack in the form of cash or debt capacity; the newly formed firm maintains a low or moderate level of debt by selling off portions of the acquired firm or some of the acquiring
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