Strategic Management
3rd Edition
ISBN: 9781259420474
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 2DQ
Summary Introduction
To explain: The disadvantages of having shareholder’s value as the sole view for defining a competitive advantage.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Explain the goal of shareholder wealth maximization, and whether this goal is a short-term goal or a long-term goal.
Identify the conflict between the goal of shareholder wealth maximization and other stakeholder concerns (sometimes referred to as environmental, social, and governance (ESG) concerns).
Cite one real-world example of a company that reflects other stakeholder concerns in its mission statement or stated corporate values.
Explain, for your chosen real-world example, how the company’s incorporation of stakeholder concerns could enhance (or detract from) the company’s shareholder wealth maximization goal.
Construct one question related to shareholder wealth maximization goals.
Imagine yourself as a CEO of a small firm in an industry in which you are interested and explain why the concept of competitive advantage is central to your company?
Think of a company where “doing the right thing” and acting in the interests of broader stakeholders (rather than just stockholders alone) have produced a stronger competitive advantage. Why was this the case?
Knowledge Booster
Similar questions
- Explain how operating decisions of management may be affected by the probability of the firm`s technical insolvency and why the magnitude of the influence may depend on whether management is more self-interest-oriented or more shareholder-oriented.arrow_forwardThe fundamental debate with regards corporate-level strategy is whether corporations are, and should be, run as federations of autonomous business units or as highly integrated organizations. Some authors argue that corporate strategists should view themselves as investors, with financial stakes in a portfolio of business units. Each business unit should be judged on its merits and given a large measure of autonomy, to be optimally responsive to the specific conditions in its industry. However, other authors are at odds with this view, pointing to the enormous potential for synergy that is left untapped. They argue that corporations should be tightly knit groupings of closely related business units that share resources and align their strategies with one another. Discuss in the context of the Portfolio Organisation versus the Integrated Organisation Perspective.arrow_forwardWhy might a specific replacement CEO candidate be a good or poor choice for a firm with an existing mission and vision?arrow_forward
- Read the following scenarios, then answer the questions that follow. Situation 1 In the following statement, a business owner attempts to explain and justify his preference for slow growth in his business. I limit my growth pace and make every effort to service my present customers in the manner they deserve. I have some peer pressure to do otherwise by following the advice of experts—that is, to take on partners and debt to facilitate rapid growth in sales and market share. When tempted by such thoughts, I think about what I might gain. Perhaps I could make more money, but I would also expect a lot more problems. Also, I think it might interfere somewhat with my family relationships, which are very important to me. Situation 2 Bear Bills, Inc. was started in 2008 by three Baylor University alumni in their early twenties as a solution to a problem every college student faces—paying utilities. The company's name originated from the university's mascot, the Baylor Bears. The business…arrow_forwardIdentify and discuss each of the three tests for determining whether diversification into a new business is likely to build shareholder value.arrow_forwardHow Coca-Cola deals with their assets and liabilities to increase market penetration? How Coca-Cola is meeting shareholders’ expectations?arrow_forward
- Explain the concept of “stakeholder management” in a publicly held corporation. Why shouldn’t managers be solely interested in stock-holder management, that is, maximizing the returns for owners of the firm – its shareholders? Explain the impact and include the zero- sum and symbiosis roles of stakeholder management in your answerarrow_forwardHow might the firm utilize a business-level cooperative strategy to create a competitive advantage? Of the four business-level cooperative strategies, Complementary strategic alliances: vertical or horizontal, Competition response strategy, Uncertainty-reducing strategy, and Competition reducing strategy, which is most likely to be of significant value to your team's firm? Why? What are the risks associated with this strategy and how might they be managed? What internal governance mechanisms would you propose to monitor managers' decision-making?arrow_forward6 - Why is it important for a firm to study and understand its internal organization? 7 - What is a business model and how do business models differ from business-level strategies? 8 - How do awareness, motivation, and ability affect the firm’s competitive behavior? 9 - What is corporate-level strategy and why is it important? 10 - What motives might encourage managers to over diversify their firm?arrow_forward
- Background Domino’s Pizza has been in business over 50 years and claimed to be “# 1 Worldwide in Pizza Delivery” in 2013. Visit the company’s business related website and read the company profile under the “Investors” tab. Does the firm focus on the accounting, shareholder, or economic perspective in describing its competitive advantage in the profile? Do you think any one approach is any better (or worse) than the others? Explain.arrow_forwardHow does Stakeholder helps the Maximization of Profit for the Shareholders? (Own words please)arrow_forwardwhat are the external strengths for yeti holdings inc?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill Education
Management (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSON
Business Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSON
Fundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON