MAN 3600 CH 13
Study online at https://quizlet.com/_6j03fb
1. Chapter 13 Chapter 13
2. A strategy can be de- The actions managers take to attain the goals of the firm
fined as
3. The pre-eminent goal Maximize shareholder value
of most multination-
al corporation's espe-
cially publicly traded
firms
4. Maximizing share- Increasing their profitability and the profit growth rate over time
holder value requires
firms to focus on
5. Profitability the rate of return the firm makes on its invested capital (ROIC)
6. Profitability = net profits/total invested capital
7. Profit Growth the percentage increase in net profits over time
8. higher profitability Increase the value of an enterprise and thus the returns garnered by its
and a higher rate of owners, the shareholders
profit growth will
9. Managers can in- Lower costs or add value to the firms products, which enable firms to raise
crease the profit abil- prices
ity of the firm by pur-
suing strategies that
10. Managers can in- Sell more products in existing markets or enter new markets
crease the rate at
which the firms prof-
1/5
, MAN 3600 CH 13
Study online at https://quizlet.com/_6j03fb
its grow overtime by
pursuing strategies to
11. Expanding interna- Boost a firms profitability and increase the rate of profit growth over time
tionally can help man-
agers
12. The weight to in- Value
crease the profit abili-
ty of a firm is to create
more
13. Value Creation Performing activities that increase the value of goods or services to con-
sumers
14. A company creates Converting the cost into a product on which consumers place a value
value by
15. Company can create Lowering production costs or by making the product more attractive So that
more value either by consumers place a higher value on it and consequently are willing to pay a
higher price
16. Value Creation = V-C
17. A firm has high profits it creates more value for its customers and does so at a lower cost
when:
18. differentiation strate- A strategy that focuses primarily on increasing the attractiveness of a product
gy
19. Two basic strategies Low-cost and differentiation
for creating value in
attaining a competi-
2/5
Study online at https://quizlet.com/_6j03fb
1. Chapter 13 Chapter 13
2. A strategy can be de- The actions managers take to attain the goals of the firm
fined as
3. The pre-eminent goal Maximize shareholder value
of most multination-
al corporation's espe-
cially publicly traded
firms
4. Maximizing share- Increasing their profitability and the profit growth rate over time
holder value requires
firms to focus on
5. Profitability the rate of return the firm makes on its invested capital (ROIC)
6. Profitability = net profits/total invested capital
7. Profit Growth the percentage increase in net profits over time
8. higher profitability Increase the value of an enterprise and thus the returns garnered by its
and a higher rate of owners, the shareholders
profit growth will
9. Managers can in- Lower costs or add value to the firms products, which enable firms to raise
crease the profit abil- prices
ity of the firm by pur-
suing strategies that
10. Managers can in- Sell more products in existing markets or enter new markets
crease the rate at
which the firms prof-
1/5
, MAN 3600 CH 13
Study online at https://quizlet.com/_6j03fb
its grow overtime by
pursuing strategies to
11. Expanding interna- Boost a firms profitability and increase the rate of profit growth over time
tionally can help man-
agers
12. The weight to in- Value
crease the profit abili-
ty of a firm is to create
more
13. Value Creation Performing activities that increase the value of goods or services to con-
sumers
14. A company creates Converting the cost into a product on which consumers place a value
value by
15. Company can create Lowering production costs or by making the product more attractive So that
more value either by consumers place a higher value on it and consequently are willing to pay a
higher price
16. Value Creation = V-C
17. A firm has high profits it creates more value for its customers and does so at a lower cost
when:
18. differentiation strate- A strategy that focuses primarily on increasing the attractiveness of a product
gy
19. Two basic strategies Low-cost and differentiation
for creating value in
attaining a competi-
2/5
