All categories

2 years ago

The fundamental relationship between economic value creation and competitive advantage is?

1 answer:

soldier1979 [14.2K]2 years ago

3 0

The fundamental relationship of economic value creation to competitive advantage is that an increase in one will leads to another. Due to that, we can say that other competitors’ economic value creation will decrease. These changes will lead to a relative shift in cost structure and a shift in consumers’ behavior to pay more.

Competitive markets deal with homogenous products and with too many producers and due to that no one producer can create a monopoly. As in monopoly, the market deals with non-homogenous products with single or few producers.

Further descriptions are below here about the relationship between value creation and competitive advantages:

Fundamental in strategic management
Provides the foundation upon which to formulate a firm's competitive strategy for cost leadership or differentiation
A firm has a competitive advantage when it creates more economic value than rival firms.

For more content like this visit:

brainly.com/question/25010811

#SPJ4

You might be interested in

Partnerships refer to more than one owner. a limited partnership ______________.

snow_lady [41]

Is it a multiple choice question? Anyway, this is the definition of a limited partnership:

<span>A Limited Partnership is a partnership consisting of a general partner, who manages the business and has unlimited personal liability for the debts and obligations of the Limited Partnership, and a limited partner, who has limited liability but cannot participate in management.</span>

7 0

3 years ago

Scott and his partner, Greg, have decided to update their computer network, although they have no expertise in this area. During

larisa86 [58]

Answer:

d. rational decision making.

Explanation:

Rational decision makers do not expect any boundaries and constraints as they assume the decision should be taken after having all the facts known, as these relate to taking a decision in good faith.

This is basically choosing the best with all the information and understanding.

As here Scott and his partner do not have complete knowledge and understanding of the complexity and technology.

Thus, it hinder there exercise towards making a rational decision.

6 0

3 years ago

Choose the most correct statement: Select one: a. U.S. Law no longer requires the use of a copyright notice. b. Plaintiffs in a

Sveta_85 [38]

Answer: D. All of the above

Explanation:

6 0

4 years ago

ABC Technologies manufactures computer accessories, such as modems and network cards. Even though the company has several purcha

Anni [7]

Answer:

The correct answer is Decider.

Explanation:

The decision-maker is the one who decides in part or all of the purchase of a certain institution or company, when moving to the political sphere it is translated as one who makes the decisions within the so-called important aspects, whether in the case of health, education or Another within the functions of the state, the decision makers are also called "decision makers" who can also be recognized as the political responsible.

8 0

3 years ago

Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-ca

Firdavs [7]

Answer:

13.75%

Explanation:

Calculation for what will be the company's return on equity

First step

Asset Turnover Ratio= Net Sales / Total Assets ------(1)

Given Asset Turnover Ratio =2.7

=> 2.7 = 4,000,000/ Total Assets (from equation 1)

=>Total Assets = 1,481,481 ------(2)

Second step

ROE = Net Income / Equity

Net Income = (EBIT - Interest Charges) *(1-tax rate)

Net Income = (356,000 -168,000) *(1-35%)

Net Income = $122,200 --------(3)

Equity = Total Assets *(1-debt ratio)

Equity = 1,481,481*(1-0.4) = $888,889 --------(4)

From equation 3 and 4

ROE = Net Income / Equity

ROE= 122,200/888,889

ROE =0.1375*100

ROE=13.75%

Therefore ROE will be 13.75%

5 0

3 years ago