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babunello [35]
2 years ago
13

Richard is the owner of a very popular burger joint in his locality. He knows that his burger joint's location and excellent cus

tomer service give him a competitive advantage over other burger joints. He is conducting a research to understand if there are other burger joints that provide the same sort of services that his joint does. He also intends to know if his competitors have the financial means to do so and if they seem to care about what his joint offers. In the context of the components of resource-based analysis, Richard is trying to understand if his product or service is _____.
Business
1 answer:
Sergio039 [100]2 years ago
4 0

Answer:

Richard is trying to understand if his product or service is substitutable.

Explanation:

According to the resource based theory, businesses gain competitive advantages over other businesses in the industry based on the strength of their resources.

For competitive advantage to be sustainable however, such resources must be rare, and not easily imitated or substituted.

Richard is carrying out research on his competitors to find out what they have to offer, to know if his product can be easily substituted or replaced.

You might be interested in
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $77.152 million Cash of $6.030 millio
jonny [76]

Answer:

$45.027 million

Explanation:

The accounting equation shows the relationship between the various elements of the balance sheet. These are the assets, liabilities and equity. It is given as

Assets = Liabilities + Equity

The owner's equity is made up of the common stock and retained earnings (which is the net income less dividend paid over the period).

Equity = $125.989 million - $77.152 million

= $48.837  million

Retained earnings = Equity - Common stock

= $48.837  million - $3.810 million

= $45.027 million

Digby Corporation's retained earnings is $45.027 million

5 0
2 years ago
Consider a hypothetical closed economy in which households spend $0.70 of each additional dollar they earn and save the remainin
Gekata [30.6K]

Answer:

$0.70 and 3.3

Explanation:

Data provided in the question

Household spending for each additional dollar = $0.70

And, the remaining amount = $0.30

So in the given case,

The marginal propensity to consume (MPC) = household spending for each additional dollar i.e $0.70

And, the Spending multiplier is

= 1 ÷ 1 - MPC

= 1 ÷ 1 - $0.70

= 1 ÷ $0.30

= 3.3

5 0
2 years ago
Candace owns a small business that is financially struggling. In order to respond to economic pressures, Candace is now obliged
Inessa [10]

Answer:

The answer is both: B) organizational change or competition over resources

Explanation:

Organizational change usually takes place due to external or internal pressures. In this specific case, Candace´s business is not doing well, probably her sales are down. We don´t know the reason why, I can guess probably more competition, but we know she must act fast.    

Money is the most scarce resource of all. So if money is not flowing in like Candace would expect she must be able to make difficult decisions. Laying off a worker (out of how many?) is usually seen as a bad sign for the rest of the employees. Reducing labor days (Sundays) will probably also affect the rest of the employees negatively because they will simply work less hours and get paid less.

But the bottom line is Candace as the owner (probably also the manager) has to make the decisions that are necessary for her business to continue. It would always be worst for everyone involved (Candace and her employees) if they go out of business. That way everyone loses.

At this point Candace will need to communicate with her employees and let them know how bad the situation is and the necessary steps to be taken. Her actions will be unpopular but its her job to convince her employees that its for everyone´s best interest. Well, for everyone except the one employee already fired. Leaders must show up in difficult times and make tough choices.

4 0
2 years ago
Three stocks have share prices of $37, $115, and $85 with total market values of $540 million, $490 million, and $290 million, r
BaLLatris [955]

Answer:

Index Value= 39

Explanation:

Index Value=(37+115+85)/3=39

5 0
2 years ago
Read 2 more answers
MedPlus Incorporated, based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan compa
Grace [21]

Answer:

Legal Risk

Explanation:

Legal risk are damage, financial, reputational losses or any other form of loss received by a business due to negligence in compliance with the law related to the business. They are prospective fines or loses that a business or an organization receives for not complying with the business law and regulations.

In this case, the prospective loss could come by associating with Azpak limited which have inadequate protection of intellectual property rights.

3 0
2 years ago
Read 2 more answers
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