BU481 Study Guide - Final Guide: The Body Shop, Stock Valuation, Sunk Costs
Document Summary
According to the article evaluating strategic alternatives and the discussions in class, please define and describe in details the tests that should be used to assess and rank strategic alternatives. Must take into account both macroeconomic and industry factors. Test 2: how sustainable is the competitive advantage? how strong is the presence of the law of nemesis? o. Nothing good lasts indefinitely; other competitors will invariably find ways to share the wealth of the market leaders. Recent trends are showing that unassailable static advantage is no longer viable, must move to a more dynamic organization that continually seeks new sources of advantage o o. Test 4: are the risks acceptable overall level of risk reflects vulnerability of key results if assumptions are wrong or critical tasks are not accomplished. Tend to anchor on an outcome they believe will occur. Several biasing elements work together (training and experience) Bias is given to facts that are easy to find.
