Globus Exam 1: Chapter 5

What two things must you do in order to accurately measure competitive advantage? 1. Accurately assess firm performance 2. Compare and benchmark the focal firms performance to other competitors in the same industry Define Total return to shareholders is an external performance metric and indicates how the market views all publicly available information about a firms past, current state, and future. What three components are critical to evaluating any good or service? (V) value (P) Price (C) Cost What is Economic value? the difference between a buyers willingness to pay for a good or service and the firms cost to produce it (V-C) What four key questions are answered by manager when developing strategic objectives for the balance score cards? 1. How do customers view us 2. How do we create value? 3. What core competencies do we need? 4. How do shareholders view us? What three dimensions make up the triple bottom line It is the consideration of more than just economics to also include the environment and