MGT 8803 FINAL ACTUAL ANSWERS AND
QUESTIONS SET A+
✔✔McDonald's industries... - ✔✔*fast food
*franchising
*wholesale distribution
*real estate
✔✔Strategic group - ✔✔very similar business models, rivalry more intense
✔✔More likely to drive sustainable competitive advantage... - ✔✔INTANGIBLE
ASSETS
✔✔Concentration ratio - ✔✔measure of aggregate market shares of the top competitors
in an industry
✔✔Social Media PESTEL - ✔✔Political: increasing scrutiny b/c free speech & fake
news
Economic: rapid growth, primary income from ads
Socio-cultural: divisive, bombarded w/ ads
Technological: new technologies, regulatory scrutiny (ie, facial recognition)
Ecological: n/a
Legal: increasing regulation & legal hearings
✔✔Productivity Frontier - ✔✔best possible strategic positions that a firm can take
relating to value & low cost
*concave curve
✔✔Index levels - ✔✔(market share**2)
*Concentrated: 2500+
*Moderately concentration: 1500-2500
✔✔Influence costs - ✔✔source of costs for both related & unrelated diversification
, ✔✔PESTEL: Political - ✔✔*subsidies
*favorable tax policies
*pricing controls
*regulated access
*grants
*trade controls/import
*restrictions
*tariffs
IMPACT: emerging technologies & encourages R&D, creates or eliminates barriers to
entry
✔✔PESTEL Analysis - ✔✔*identify external macro-factors that can impact the firm
*discern trends & predict outcomes to be considered during strategic planning process
*extract opportunities & threats that require mgt attention
✔✔PESTEL: Economic - ✔✔*growth rates
*interest rates
*inflation rates
*cost of capital
*employment levels
*price stability
*currency exchange rate
*disposable & discretionary income
IMPACT: types of goods or services provided, higher ROI thresholds for capital project
approvals
✔✔PESTEL: Socio-Cultural - ✔✔*cultural norms & values
*life expectancies
*aging population
*changes in ethnic composition
*immigration & workforce diversity
*rising affluence
*increasing lifestyle changes
*attitudes towards safety, products, environment
IMPACT: what consumers want to buy, market sizes, increasing mgt complexity of
diverse workforce
✔✔PESTEL: Technological - ✔✔*IP protections
*industrial spending on R&D
*digital communications
*emerging industries
*technology transfer
*innovations in product technology
*innovations in process technology
IMPACT: enabler of new business models, process, products, & services | can be
efficiency driven, product sustainable, or disruptive in character
QUESTIONS SET A+
✔✔McDonald's industries... - ✔✔*fast food
*franchising
*wholesale distribution
*real estate
✔✔Strategic group - ✔✔very similar business models, rivalry more intense
✔✔More likely to drive sustainable competitive advantage... - ✔✔INTANGIBLE
ASSETS
✔✔Concentration ratio - ✔✔measure of aggregate market shares of the top competitors
in an industry
✔✔Social Media PESTEL - ✔✔Political: increasing scrutiny b/c free speech & fake
news
Economic: rapid growth, primary income from ads
Socio-cultural: divisive, bombarded w/ ads
Technological: new technologies, regulatory scrutiny (ie, facial recognition)
Ecological: n/a
Legal: increasing regulation & legal hearings
✔✔Productivity Frontier - ✔✔best possible strategic positions that a firm can take
relating to value & low cost
*concave curve
✔✔Index levels - ✔✔(market share**2)
*Concentrated: 2500+
*Moderately concentration: 1500-2500
✔✔Influence costs - ✔✔source of costs for both related & unrelated diversification
, ✔✔PESTEL: Political - ✔✔*subsidies
*favorable tax policies
*pricing controls
*regulated access
*grants
*trade controls/import
*restrictions
*tariffs
IMPACT: emerging technologies & encourages R&D, creates or eliminates barriers to
entry
✔✔PESTEL Analysis - ✔✔*identify external macro-factors that can impact the firm
*discern trends & predict outcomes to be considered during strategic planning process
*extract opportunities & threats that require mgt attention
✔✔PESTEL: Economic - ✔✔*growth rates
*interest rates
*inflation rates
*cost of capital
*employment levels
*price stability
*currency exchange rate
*disposable & discretionary income
IMPACT: types of goods or services provided, higher ROI thresholds for capital project
approvals
✔✔PESTEL: Socio-Cultural - ✔✔*cultural norms & values
*life expectancies
*aging population
*changes in ethnic composition
*immigration & workforce diversity
*rising affluence
*increasing lifestyle changes
*attitudes towards safety, products, environment
IMPACT: what consumers want to buy, market sizes, increasing mgt complexity of
diverse workforce
✔✔PESTEL: Technological - ✔✔*IP protections
*industrial spending on R&D
*digital communications
*emerging industries
*technology transfer
*innovations in product technology
*innovations in process technology
IMPACT: enabler of new business models, process, products, & services | can be
efficiency driven, product sustainable, or disruptive in character
