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Question: What are strategic competitiveness, strategy,


What are strategic competitiveness, strategy, competitive advantage, above-average returns, and the strategic management process?



> What particular governance devices are helping or hindering good governance in these countries that are changing their governance systems?

> Why are many countries adopting “western” governance systems similar to those found in the United States and the United Kingdom that are more shareholder friendly?

> Should cost minimization or opportunity maximization be the primary goal of a cooperative strategy? Can both be achieved simultaneously? Why or why not?

> What costs are incurred in developing strategic alliances? How can these costs be managed?

> What role does competition from rivals play in the eventual success of cooperative strategies? Please explain.

> What are some of the major complexities encountered in developing cooperative strategies such as strategic alliances and joint ventures?

> How do firms create value when using a related diversification strategy?

> How can companies handle corrupt practices in foreign countries? Can they find ways to compete there without engaging in these practices? Please explain.

> Given the process described for gaining sponsorships (e.g., through sports marketing agencies), should Nike and other major companies realize that bribes and other corrupt practices were taking place?

> What international strategy is being used by the major companies holding these sponsorships? Please explain.

> What are the benefits to companies such as Nike and Coca-Cola acting as sponsors of soccer organizations in foreign countries?

> How does the FIFA scandal represent a form of political risk for companies operating in foreign countries?

> What would you suggest the firm do to improve its restructuring plan and ultimately its poor performance?

> The new CEO, Jan Jewish, has undertaken a restructuring strategy. Why do you think the market reacted negatively to this plan?

> Given that there have been performance difficulties of this “merger of equals,” which of the “Problems in Achieving Acquisition Success” do you believe have most likely affected this deal?

> Of the “Reasons for Acquisitions” discussed in the chapter, which reasons are the primary drivers of Lafarge-Holism’s merger strategy?

> Given the diversification approach that Disney uses, what are some things they can do to deal further with the trend toward cord-cutting and competition from large streaming and content producers such as Netflix, Amazon, and other content producers?

> What are three reasons firms choose to diversify their operations?

> What are synergies and economies of scope and how do they work at Disney to lower its overall costs?

> How does the corporate office create a parental advantage, which is difficult to duplicate by its more focused competitors?

> What corporate diversification strategy is being pursued by Disney? What evidence do you have that supports your position?

> In a competitive rivalry sense, explain the actions (strategic and/or tactical) you believe Walmart and Costco will take to respond to Aldi’s intentions to have 2,500 U.S. stores by 2020.

> Using concepts and actions explained in this chapter, decide if Aldi is more likely to respond to any strategic actions Amazon might initiate through Whole Foods or if Amazon through Whole Foods is more likely to respond to any strategic action Aldi take

> As explained in this chapter’s Opening Case, Amazon purchased Whole Foods. How will this transaction affect Aldi as it seeks to expand its presence in the United States? What competitive actions might Aldi take in response to Amazon’s purchase of Whole F

> Using materials in the case and items to which you gain access through a search, describe how Aldi is creating competitive rivalry in the retail grocers’ industry.

> What are the most serious competitive challenges you anticipate Hein Celestial will face over the next ten years? How should the firm respond to these challenges?

> In years to come, should Hein try to grow primarily organically, through collaborative strategies such as joint ventures and strategic alliances, or through mergers and acquisitions? Explain your answer.

> On what environmental trends did Hein Celestial base its business-level strategy? What environmental trends could have a negative effect on this firm’s strategy in the future? Why?

> What are the different levels of diversification firms can pursue by using different corporate-level strategies?

> We note in the Mini-Case that Hein Celestial is implementing the differentiation strategy. Provide some examples of the competitive dimensions on which this firm focuses while implementing its differentiation strategy.

> What actions would you recommend the management of super dry take to resolve its problems and turn around the performance of the firm?

> What value does super dry create for its customers?

> Will the actions that super dry is taking solve its problems? Why or why not?

> Does Super dry have one or more capabilities that are valuable, rare, costly to imitate, and no substitutable? If so, what are they? If not, on which criteria do they fall short?

> What influences from the external environment over the next several years do you think might affect super dry’s ability to compete?

> Is Jet.com a potential concern for Amazon? Why or why not?

> What are Amazon’s major strengths? Does it have any weaknesses? Please explain.

> How formidable a competitor is Google for Amazon? Please explain.

> Can any firm beat Amazon in the marketplace? If not, why not? If so, how can they best do so?

> What is corporate-level strategy and why is it important?

> As Starbucks’s new chief executive officer and strategic leader, what key challenges does Kevin Johnson and his firm face?

> Starbucks’s mission is “To inspire and nurture the human spirit—one person, one cup and one neighborhood at a time.” What actions do you recommend the firm take to reach this mission?

> Identify three or four capabilities you believe Starbucks possesses. Of these, are any a core competence? If so, explain your reasoning.

> What competitive advantage or competitive advantages do you believe Starbucks seeks to establish? What are the main challenges the firm faces as it tries to maintain the advantage or advantages you identified?

> What are the specific risks associated with using each business-level strategy?

> How can firms use each of the business-level strategies to position themselves favorably relative to the five forces of competition?

> What are the differences among the cost leadership, differentiation, focused cost leadership, focused differentiation, and integrated cost leadership/differentiation business-level strategies?

> What is a business model and how do business models differ from business-level strategies?

> What is the relationship between a firm’s customers and its business-level strategy in terms of who, what, and how? Why is this relationship important?

> What is a business-level strategy?

> Assume that the Jake, Sacha, and Brianne partnership of A & R Problem 11-1 is a limited partnership. Jake and Sacha are general partners and Brianne is a limited partner. How much of the remaining $45,000 liability should be paid by each partner? Data f

> At the last meeting of the executive committee of Kearins Ltd., the controller was severely criticized by both the president and vice-president of production about the recognition of periodic depreciation. The president was unhappy with the fact that wha

> Rhondda McNabb always asks her adviser in-depth questions before acquiring a company’s shares. Rhondda is currently considering investing in Simpson Scientific Corp. Simpson’s annual report contains the following summa

> Both Dragon Corp. and Kent Inc. design, produce, market, and sell sports footwear. Key comparative figures (in thousands of dollars) from recent financial statements for these two organizations follow: Required 1. Calculate common-size percentages for th

> Wild Rafting Adventures Inc. began the month of May with $200,000 of current assets, a 2 to 1 current ratio, and a 1 to 1 quick (acid-test) ratio. During the month, the following transactions were completed (assume a perpetual inventory system): Required

> Hope Bicycle Recycle Corporation. Balance Sheet December 31, 2020 Required: Complete the balance sheet for Hope Bicycle Recycle Corporation. Round amounts to the nearest $100.

> The following items include the 2020 and 2019 balance sheet information and the 2020 income statement of the Clear Water Corporation. Additional information about the company’s 2020 transactions is presented after the financial statemen

> Swiss Farm Inc.’s 2020 statement of cash flows appeared as follows: Swiss Farm Inc.’s balance sheet information is as follows: An examination of the company’s statements and accounts showed: a. All ac

> The data below refer to Money Ltd. for the year ended December 31, 2020. Required: For each item, identify both the dollar amount and its classification—that is, whether it would appear as a positive or a negative adjustment to profit in the calculation

> Jacobson Manufacturing Corporation earned $84,000 in profit during 2020. Machinery was sold for $116,000 and a $24,000 loss on the sale was recorded. Machinery purchases totalled $330,000 including a July purchase for which an $80,000 promissory note was

> Vidéotron Ltée completed the following transactions involving printing equipment. Machine 6690 was purchased for cash on May 1, 2020, at an installed cost of $72,900. Its useful life was estimated to be four years with an $8,100 trade-in value. Straight-

> On January 1, 2020, Holiday Resorts Ltd. purchased 30% of Chapman Ltd.’s outstanding common shares. The balance in Holiday Ltd.’s Investment in Associate—Chapman Ltd. account was $500,000 as of Decemb

> Sustainable Seafood Inc. processes and markets frozen seafood products. Continental Pipelines Limited is in the oil and gas industry in Canada and abroad. Both companies are being considered as potential investment opportunities by the executive team of

> Silver Bullet Slide Company calculated the ratios shown below for 2020 and 2019: Required 1. Identify whether the change in the ratios from 2019 to 2020 is favourable (F) or unfavourable (U). 2. Assess whether the 2020 ratios are favourable or unfavourab

> Eco Play Ltd., with its head office in Vancouver, manufactures enviro-friendly, safe playground equipment for elementary schools. Its 2020 balance sheet and income statement follow. Assume that the share capital is all common and that the weighted averag

> On December 31, 2020, Warner Publishing Inc. showed the following Required Part 1: Calculate book value per common share and preferred share at December 31, 2020, assuming no dividends were declared for the years ended December 31, 2019, or 2020, and tha

> The 2020 four-year comparative financial statements of Digital Shelf Space Corp. follow: Required 1. Calculate the following for 2020 and 2019 and identify whether the ratios compare favourably (F) or unfavourably (U) from 2019 to 2020: (a) quick ratio,

> Zhang Inc. and Black Inc. are similar firms that operate within the same industry. Black began operations in 2018 and Zhang in 2012. In 2020, both companies paid 7% interest to creditors. The following information is available: Required The controller of

> City Software Inc. began the month of March with $286,000 of current assets, a current ratio of 2.2 to 1, and a quick ratio of 0.9 to 1. During the month, it completed the following transactions: Mar. 3 Sold for $55,000 merchandise that cost $36,000. (Th

> The condensed statements of Organic Grocery Corporation follow. Required 1. Calculate each year’s current ratio. 2. Express the income statement data in common-size percentages. 3. Express the balance sheet data in trend percentages wit

> The condensed comparative statements of Modern Health Inc. follow: Required Calculate trend percentages for the items of the statements using 2014 as the base year. Analysis Component: Analyze and comment on the situation shown in the statements.

> During 2020, Global Designs Inc. had the following transactions. Aug. 31 Traded in furniture with a cost of $42,000 and accumulated depreciation of $25,800 recorded in the accounting records on this date. Global paid $56,400 in cash for a computer system

> Clear Strategy Corp., a strategic marketing consulting firm, began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020 is shown below along with some other information. Other information regarding Clear Strategy Co

> Required: Refer to the information in Problem 16-7B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. Other information: a. All accounts payable balances result from merchan

> Zhang Systems Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020 is shown below along with some other information. Other information regarding Zhang Systems Inc. and its activities during 2020: 1. Assum

> Required: Refer to the information in Problem 16-5B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. Other information: a. All sales were credit sales. b. All credits to ac

> Triple Flip Inc., a sporting goods retailer, recently completed its 2020 operations. Triple Flip Inc.’s balance sheet information and income statement follow. Additional information regarding Triple Flip Inc.’s activit

> Required: Refer to the information in Problem 16-3B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. Other information: a. All sales are credit sales. b. All credits to acc

> Burrow Mining Inc.’s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows: During 2020, the following transactions occurred: 1. Issued $14,000

> Required: Refer to the information in Problem 16-1B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. Other information: a. All sales were credit sales. b. All credits to ac

> Required: Refer to the information in Problem 16-11B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. Other information: a. All accounts payable balances result from mercha

> On May 2, 2020, Uniglobe Satellite Company purchased and installed a new machine that cost $273,000, with a five-year life and an estimated $38,220 residual value. Management estimated that the machine would produce 168,000 units of product during its li

> ID Watchdog Inc. recently negotiated a lump-sum purchase of several assets from a contractor who was planning to change locations. The purchase was completed on September 30, 2020, at a total cash price of $1,044,000, and included a building, land, certa

> CHECK FIGURES: 1. Dr. Depreciation Expense, Machinery $55,000; 1. Dr. Depreciation Expense, Equipment $126,667; 2. Total PPE = $241,666 Required 1. Calculate and record depreciation for the year ended December 31, 2021, for both the machinery and equipme

> Refer to the information in Problem 9-5B. Redo the question assuming that depreciation for partial periods is calculated using the half-year convention. Data from Problem 9-5: Tundra Tours runs tundra buggy expeditions in northern Manitoba for tourists

> Tundra Tours runs tundra buggy expeditions in northern Manitoba for tourists to catch a glimpse of the abundant caribou, polar bears, and other wildlife. Tundra purchased a tundra buggy on October 19, 2020, for cash of $145,000. Its estimated useful life

> LiveReel Media purchased for $588,000 machinery having an estimated useful life of 10 years with an estimated residual value of $56,000. The company’s year-end is December 31. Depreciation is calculated using the half-year rule. Require

> On January 2, 2018, Wavepoint Systems, a cell phone manufacturer, installed a computerized machine in its factory at a cost of $169,200. The machine’s useful life was estimated at four years or a total of 181,500 units with a $24,000 tr

> The adjusted balances at September 30, 2020, for Xentel Interactive are shown in alphabetical order below: Required: Prepare a comparative classified balance sheet at September 30, 2020. Analysis Component: How were Xentel’s assets main

> Country Feed Inc., a Saskatchwan-based farm and ranch livestock feed distributor, began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020 is shown below along with some other information. Other information regard

> On January 1, 2020, Ultra Green Packaging purchased a used machine for $156,000. The next day, it was repaired at a cost of $4,068 and mounted on a new platform that cost $5,760. Management estimated that the machine would be used for seven years and wou

> In 2020, DelCano Properties paid $540,000 for a tract of land on which two buildings were located. The plan was to demolish Building A and build a new factory (Building C) in its place. Building B was to be used as a company office and was appraised at a

> On April 14, 2020, Orchid Company, a new Thai restaurant, purchased land and a building for a total price of $540,000, paying cash of $85,000 and borrowing the balance from the bank. The bank appraised the land at $320,000 and the building at $180,000. C

> 1. Classify the following expenditures as Repairs and Maintenance Expense or Betterment: a. The monthly replacement cost of filters on an air conditioning system, $120. b. The cost of replacing a compressor for an ice cream company’s refrigeration system

> Fire Pizza Food Truck purchased a giant wood stove for $11,000, terms 2/10, n/60, FOB shipping point, to go on a trailer behind the food truck. Fire Pizza received an invoice for $280 for freight charges. Fire Pizza took advantage of the discount. Staff

> Sydney Lanes, a local bowling alley, installed automatic scorekeeping equipment. The electrical work required to prepare for the installation was $18,000. The invoice price of the equipment was $180,000. Additional costs were $3,000 for delivery and $600

> The following data are taken from the comparative balance sheets of Duncan Data Storage Company. Calculate the accounts receivable turnover for 2020 and 2019 (round to two decimal places). Is the change favourable or unfavourable? Explain why. Compare Du

> a. Using the information in QS 17-7, calculate the quick ratio. b. At the end of the last accounting period, this company’s quick ratio was 0.82:1. Has the change in the quick ratio been favourable or unfavourable? Data from QS 17-7: U

> Using the information above, calculate the: a. Working capital b. Current ratio Round calculations to two decimal places. c. What is the difference between working capital and the current ratio? d. Assuming this company’s current ratio

> Carmon Cupcake Inc.’s December 31 balance sheets included the following data: Required: Express the balance sheets in common-size percentages. Round calculations to two decimal places.

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