Ari is a firm believer in Milton Friedman’s view of a firm’s social obligations. With which of the following statements is Ari most likely to agree?

PolyCon Inc. is a public stock company that provides natural gas for businesses. Although this company generates a large profit, management’s focus on reducing costs caused the maintenance budget to be trimmed. Its pipelines have at times leaked, which created significant environmental problems. As a result, the company’s value creation has suffered. This scenario supports strategy scholars’ warning that public companies

Frozen Gold is a fast-growing chain of ice cream shops. It has developed an edge over its competitors by providing customers with a wide array of unique flavors and fostering a hip atmosphere in its stores. This advantage of Frozen Gold best exemplifies a

What do strategy scholars believe is the result of executives’ pursuit of strategies that define value creation too narrowly in public stock companies?

Five Guys has become successful in a highly competitive industry dominated by fast-food giants like McDonald’s and Burger King, as well as direct competitors claiming to be “better burger” joints such as Smashburger, Burgerfi, and Shake Shack. Which of the following statements accurately explains the main reason for the success of Five Guys?

Bill’s Auto & Airplane Repair shop is able to generate a positive net income of $10,000 a week, which is about the same as the income of a close competitor. As a result, we can conclude that the two businesses also have a competitive parity in the industry.

Khaled, a manager, is writing an analysis of his employer’s current and possible future revenues. Which of the following could he identify as an economic factor in his firm’s external general environment?

According to Michael Porter’s five forces model,________ must be viewed broadly to encompass other forces in an industry.

Snow Beast Equipment initially spent 10 worker hours to assemble each snow blower. However, as unit production doubled, the number of hours spent on assembling a snow blower decreased by 20 percent. This increase in productivity reduced the company’s cost per unit. What is this phenomenon referred to as?

Chips & Motherboards, a leading hard drive manufacturer, recently filed for bankruptcy. While most of Chips & Motherboards’ competitors were shifting away from physical data storage devices toward online cloud storage services, Chips & Motherboards invested most of its retained earnings in the effort to improve its hard drives. Once the hard-drive market drastically declined, Chips & Motherboards was unable to capitalize on the new technology. Which of the following does this scenario best illustrate?