Exam 8: Economics of Strategy: Creating and Capturing Value

Setting up a hub-and-spoke distribution towards inventory and retail delivery is an example of

Human resources,as a source of creating value in a modern company,are also referred to as

Degree of rivalry is

What happens to producer surplus and consumer surplus if transaction costs are reduced?

Walmart,like many companies in the new economy,uses a hub-and-spoke distribution system to

Many manufacturers attempt to build fairly close relationships with the firms that supply their packaging and boxes.Why?

Strategy refers to the general policies that managers adopt to increase

With the creation of value,there is a

If transaction costs can be reduced in a marketplace,then total producer and consumer surplus will

In a competitive market,a firm has a difficult time capturing value due to the large number of rivals.However,it can be successful in capturing value if the

In terms of business strategy,managers will attempt to adopt business strategies that

Draw supply and demand curves for a product showing the equilibrium price and quantity.Illustrate what would happen if all the transaction costs in the market for the product were reduced.Generally,what is the impact of transaction costs on market operations?

Putting together two goods-shaving cream and razors-to increase value is using the power of

What are the key components for creating market power in order to capture value?

If consumers find that there are substantial transaction costs to purchasing a product,then

Profits will be

In a corporation,one important source of value is that the "whole organization" is worth more than the sum of its parts.This is called

As opposed to corporate strategy,business strategy is focused on

Which of the following is an important factor that helps in generating economic profit in an industry?

A company can translate its assets into value if it effectively uses them in the marketplace.The three types of assets are tangible assets,intangible assets,and