Earth Mother Leisure Wear had a mission to become the leading producer of environmentally friendly leggings, an emerging and in-demand category in the apparel industry. Its strategy involved leveraging a network of organic cotton farmers and suppliers of environmentally responsible synthetic materials to create a product that is durable, attractive, affordable, and 100% recyclable. However, because it did not upgrade its outdated production facilities, Earth Mother Leisure Wear could not assemble its products at a low-enough cost to offer the leggings at a price that was attractive to customers. Earth Mother Leisure Wear’s strategy failed because

DuraLine Ltd. is a landline telephone manufacturer whose average return on invested capital is approximately 2 percent. Because demand for landline telephones has declined significantly, the industry average return on invested capital has been negative (–5 percent) for the last few years. In this scenario, DuraLine Ltd. has a

Shippity and ShipING are two competing firms in the same industry. Shippity’s tangible assets are valued at $15 billion and its intangible assets are valued at $35 billion. ShipING’s tangible assets are valued at $5 billion and its intangible assets are valued at $45 billion. What can be concluded from this information?

Shippity and ShipING are two competing firms in the same industry. Shippity’s tangible assets are valued at $15 billion and its intangible assets are valued at $35 billion. ShipING’s tangible assets are valued at $5 billion and its intangible assets are valued at $45 billion. What can be concluded from this information?

Lin manages the supply chain for a company that sells designer bags. She learns that economists are predicting a moderate to severe recession in the next six to eight months. Based on that information, what action should Lin recommend to the company’s owner?

Center Street Supply Co. has successfully achieved a competitive advantage in the detergent and cleaning solution industry as a differentiator. Which of the following scenarios would undermine Center Street’s position?

The average cost of production for a bottle of mineral water in the industry is $5 while its average price is $8. Forever Spring Inc. manufactures the same product for $3 per bottle and sells it for $8 per bottle. Which of the following statements is most likely true of ForeverSpring Inc. in this scenario?

During an interview for a chief executive officer position, Fatma’s potential employers ask her, “If you get this job, will you focus more on industry effects or firm effects?” What should her answer be?

Earth Mother Leisure Wear had a mission to become the leading producer of environmentally friendly leggings, an emerging and in-demand category in the apparel industry. Its strategy involved leveraging a network of organic cotton farmers and suppliers of environmentally responsible synthetic materials to create a product that is durable, attractive, affordable, and 100% recyclable. However, because it did not upgrade its outdated production facilities, Earth Mother Leisure Wear could not assemble its products at a low-enough cost to offer the leggings at a price that was attractive to customers. Earth Mother Leisure Wear’s strategy failed because

DuraLine Ltd. is a landline telephone manufacturer whose average return on invested capital is approximately 2 percent. Because demand for landline telephones has declined significantly, the industry average return on invested capital has been negative (–5 percent) for the last few years. In this scenario, DuraLine Ltd. has a