more prevalent in advertisingintensive (consumer-oriented) industries‚ and CSR is more positively related to profitability in these industries. Further‚ the effect of CSR on profits is stronger in competitive industries‚ especially when few other firms undertake such actions‚ suggesting that CSR may be used as a means of differentiation in otherwise competitive environments. We also find tentative evidence that the profit effects of CSR are more positive when large external shareholders are on
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Makadok (2001) emphasizes the distinction between capabilities and resources by defining capabilities as “a special type of resource‚ specifically an organizationally embedded non-transferable firm-specific resource whose purpose is to improve the productivity of the other resources possessed by the firm” [4](p389). “[R]esources are stocks of available factors that are owned or controlled by the organization‚ and capabilities are an organization’s capacity to deploy resources”:[3] p. 35. Essentially
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importance of demand analysis to business enterprises.They are the source of many useful insights for business decision making.The success of failure of business firms depend primarily on its ability to generate resources by satisfying the demand of consumers.The firms unable to attract consumers are soon forced out from the market. The importance of demand analysis in business decisions can be explained under following headings: Sales forecasting :The demand is a basis the sales of the production
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database. The first picture is of the contents of the database and the way it is organized; and the second picture is of what can be done with the contents. We can write a Custom Research Paper on SQL for you! Briefly‚ in the case of the small firms database‚ the contents were the qualitative and quantitative data obtained with the three instruments AQ 1985‚ SSI 1985‚ and RIQ 1988; and the way in which they were handled was governed by a language made available with the software used‚ known as
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and constraints on firms and determines strategies that will result in superior returns. (External Environment à Organization) Most firms competing in an industry or an industry segment control similar sets of strategically-relevant resources and thus pursue similar strategies. Resources used to implement strategies are highly mobile across firms. Organizational decision-makers are assumed to be rational and committed to acting only in the best interests of the firm. Study the external
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the firm would have positive excess cash from 2009 instead positive excess cash from 2011 with a 40% payout ratio. This will enable the firm to use its excess debt capacity to fund its expansion needs‚ keeping within the debt-equity ratio of 40%. 40% - With a 40% payout ratio‚ the projections of 2005 would leave the debt equity ratio at 35%‚ which still gives the firm some debt capacity‚ albeit very little flexibility if it wants to keep within the 40% debt equity ratio. Perhaps the firm would
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weaknesses‚ opportunities and threats of the company. Along with these strengths‚ weaknesses‚ opportunities and threats‚ are resources and capabilities that either utilize the opportunities and strengths or counteract with threats and weaknesses of the firm. Resources and capabilities have the potential to be the basis for competitive advantage when they are valuable‚ rare‚ costly to imitate‚ and non-substitutable. When these criteria are met‚ resources and capabilities become core competencies which
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Slack Large firms are often complex institutions with several departments (sales‚ production‚ design‚ purchasing‚ personnel‚ finance‚ etc.). Each department is likely to have its own specific set of aims and objectives‚ which may come into conflict with those of other departments. These aims in turn will be constrained by the interests of shareholders‚ workers‚ customers and creditors (collectively known as stakeholders)‚ who will need to be kept sufficiently happy. In many firms‚ targets will
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Assignment 2 1. Your firm is deciding whether to pursue a $200 R&D project to develop a new drug. You estimate there is a 40% chance of successfully creating the drug‚ which will generate revenue of $550. Your competitor has just announced that it is spending 150 to pursue development of a similar drug using a different technology. You estimate that there is a 30% chance your competitor will succeed. If both firms succeed‚ they will each obtain revenue of 275. a. Should your firm undertake the 200
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Monopolistic Advantage Theory an approach in international business which explains why a particular national firm is able to compete with indigenous competitors in overseas market. He started by looking at international investments which classified into two: portfolio investment and direct investment. Control is the key factor which differentiates one another. If the investor directly controls the foreign enterprise‚ his investment is called a direct investment. If he does not control it‚ his investment
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