Discuss the impacts of the competition globalization driver on people processing, possession processing, and information-based service categories. Give at least one example of a firm that falls into each category
What will be an ideal response?
For people processing services, the need for simultaneous production and consumption limits leverage of foreign-based competitive advantage in the front-stage of the service factory, but advantage in management systems can be the basis for globalization. For example, McDonalds restaurants must have a facility to serve customers to compete with restaurants in foreign countries. For possession processing services, the lead role of technology creates the driver for competitors with a technical edge. For example, Singapore Airlines services other carriers' aircraft abroad. Information-based competition is highly vulnerable to global dominance by competitors with a monopoly or competitive advantage in information unless restricted by governments. The BBC, Hollywood, and CNN are good examples of firms that fall in this category.
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Jack Daniels Co. has $100 million in Common Equity. Hiram Walker Co. has $125 million. Both have debt on their balance sheets, but both make the same amount of after-tax profits. Which has the higher ROE?
a) Jack Daniels b) Hiram Walker c) Both the same d) Depends on the amount of debt each has and the interest rate
A large firm
in the automotive aftermarket business wants to improve its current situation, which is characterized by excess inventory, incomplete information, high logistics costs, slow reactions to environmental change, and loss of profits at the retail level. Will supply chain management be of any help to the business? a. Yes, supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption. b. No, supply chain management is only applicable to distribution strategies for products being sold in the business market. c. Yes, supply chain management, unlike other management philosophies, is not customer-driven. d. No, supply chain management requires an extensive investment in time and resources to make it worthwhile.