REVISED STUDY GUIDE FOR FNAN522 Exam I Preparation.doc

1. What iiare iithe iitwo iirequirements iifor iia iifirm iito iibe iisuccessful iidiscussed iiin iithe ii5-minute iilesson iifor iisuccess? 1. All iisuccessful iicompanies iiidentify, iicreate iiand iideliver iiproducts iior iiservices iithat iiare iihighly iivalued iiby iitheir iicustomers. iiThese iiproducts iior iiservices iiare iiso iihighly iivalued iiby iithe iicompanies iior iicustomers iithat iithey iichoose iito iipurchase iithem iifrom iithe iisuccessful iicompany iirather iithan iifrom iiits iicompetitors. iiThis iihappens iionly iiif iithe iicompany iihas iia iicompetitive iiadvantage, iithat iiis, iiit iiprovides iimore iivalue iithan iiits iicompetitors, iieither iiin iithe iiform iiof: • lower iiprices iiwith iiacceptable iiquality ii(McDonald’s, iiC’C’s iiPizza, iiKia), • convenience iior iilocation ii(C iiStore iinear iiinterstate iihighway, iiAmazon), • delivery iispeed iior iimethod ii(Halliburton, iiMary iiK, iiAmazon), iior • Superior iiproducts ii(Ruth iiChris, iiVertu iicell iiphone ii$310,000, iiMercedes).