Nike uses a transnational strategy (high local responsiveness and lowest cost position) is this the best strategy? Why or why not? | Homework.Study.com (2024)

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• Why can not organizations use both Cost Leadership and Differentiation as a Positioning Strategy? Give an example.
• Why is sustainable competitive advantage so important to a winning business strategy?
• Why would a company use a micromarketing strategy versus an undifferentiated strategy? Give one example that would fit the micromarketing strategy.
• Explain why a firm can outperform its rivals through cost leadership or benefit leadership but not through price.
• Why is an outward-oriented development strategy likely to allocate resources more efficiently than an inward-oriented strategy?
• Why are MNCs often able to produce more cheaply and sell at a lower price than local firms?
• Why would trying to drive rivals out of business by selling below cost be an unprofitable strategy?
• Why was it initially difficult for Adidas to compete in the North American market, and how has Adidas tried to compete against Nike over time?
• Why would you consider the Nike brand as a valuable intangible asset?
• Why are MNCs often able to purchase more cheaply and sell at a lower price than local firms?
• Why are "economies of scale" often central to a beer company's competitive strategy and long-term survival?
• Why is it important that the country or region with the lower opportunity cost produce the good? How would you use the concept of comparative advantage to argue for reducing restrictions on trade between countries?
• Why might the hedging strategy be preferred over the insurance strategy as a risk management approach by some businesses?
• Why are pricing decisions important to an organization?
• Why is Contrarian Investing a good strategy?
• Give one reason why a policymaker might prefer cost benefit analysis over cost effectiveness analysis.
• Why is the reframing strategy difficult to execute within established organizations?
• What are the three different reasons why entrepreneurship seems to concentrate in particular places (i.e. there appear to be persistent differences in entrepreneurship between region and countries)
• Why did J.C. Penny's strategy of "Everyday Low Prices" backfire? Explain and give examples.
• Explain the reason for non-competitive price in an industry with a strong economies of scale.
• Explain why an external cost leads to an over allocation of resources to the production of a good or service.
• Explain why, in a perfectly competitive environment, a profit maximizing firm will increase its labor force up to the number of workers that equates the prevailing wage rate to the value of the margin
• Why are marketers concerned about the cost of logistics?
• Why would there be a difference in the price elasticity of supply for a good in the short-run compared to the long-run?
• After every campaign season, the country suffers from high inflation. Why is the fiscal policy ineffective in providing an immediate solution?
• Explain why the first mover is or is not a good strategy for an entrepreneur.
• Are "anticafes" economically not profitable? Why or why not?
• Explain why or why not giving tax incentives to foreign businesses crowds out local investment.
• Explain why price floor may be considered economically inefficient?
• Why is mobile computing so important to these three firms? Evaluate the mobile strategies of each firm.
• Give us a reason not to overextend our foreign policy into the fiscal policy of every nation?
• Why would a perfect competitor never charge less than the market price?
• Why would a perfect competitor never charge more than the market price?
• Why do companies like Apple and Nike even Bother to make their products in other countries?
• Why will people or business prefer to use hedging a strategy over the use of insurance as a risk management strategy?
• Outline two reasons why businesses spend millions of dollars on advertising. Illustrate this business strategy using cost and returns analysis.
• Why is a dominant strategy a special case for the Nash equilibrium?
• Sustaining a competitive advantage can be much like chasing the wind. Why do competitive advantages tend to be so transient?
• Explain the reason why it is preferred less to hold an efficient market hypothesis when the suggestion of the fundamentals is to be at lower level.
• Why are we morally enticed to buy domestic brands, when both domestic and foreign pay local taxes and produce and employ locally? Why prefer domestic products (from the POV of economics) then?
• Explain why the target customer is placed in the center of the four P's ( product, place, promotion, and price)
• Why do firms practice price discrimination? Is efficiency affected by price discrimination?
• Briefly discuss the importance of the multiplier and MPC to a Sports team and city that it is in and why?
• What is the inherent reason why innovation is difficult in a centrally planned economy?
• Why do firms practice price discrimination? Is efficiency affected by price discrimination? If so, how?
• Why do you think strategic planning is so important? Is there one part of the planning process more important than another in your opinion? Can these same strategies be used for both small businesses as well as large worldwide firms?
• Explain why, in the Tiebout model of local public good provision, efficiency will not be achieved if there are externalities across city borders from the public good.
• Explain why a firm may decide to continue producing a good, even if its price may be less than the average total cost.
• How do you come up with an effective price for an enterprise SaaS product?
• Why is the marginal cost curve swoosh shaped?
• When might a manager prefer a linear trend technique to a moving average technique and why?
• What is the reason to sacrifice the short-run profits for the market position?
• Assume at the current price, there is a surplus in a market. Explain why this market is currently not considered efficient.
• Why is vertical merger not a typical strategy used in fragmented industries?
• Is Singapore a country that is viable as a market for multinational company expansion? Why or why not?
• 1. Why are MNCs often able to produce more cheaply and sell at a lower price than local firms? 2. What effect will freer trade with Mexico have on Mexican migration to the United States and on the mov
• Why do you believe that McDonald's has fallen into disfavour, and what would be the best strategy to upgrade its competitive status with the competition for the food dollar?
• Explain why the flexibility of wages and prices tend to favor the Keynesian economic view in the short run and the classical economic view in the long run.
• Explain why monopolists sometimes practice price discrimination.
• Why does the economy of a firm, state or nation depend on the environment it is in?
• If McDonald's is adapting to local preferences, what is the reason for its declining market share?
• Why won't a perfectly competitive firm earn economic profits in the long run?
• Why do short run average costs make a U shape in the long run?
• Explain why it is important that prices are flexible in our economy.
• Why might an active policy approach be more politically popular than a passive approach, especially during a recession?
• Why might an active policy approach be more politically popular during a recession?
• Why is it optimal for a firm to set a pricing structure that intentionally shuts the low-type consumer out of the market?
• Give reasons why price discrimination improves the efficiency of market.
• Given the following payoff matrix, (a) indicate the best strategy for each firm. (b) Why is the entry deterrent threat by firm A to lower the price not credible to firm B? (c) What could firm A do to
• Explain why price Ceiling may be considered economically inefficient.
• Why is innovation difficult in a centrally planned economy?
• Why should a marketer be aware of competitors' prices?
• If a country has an absolute advantage in a good, must it also have a comparative advantage in that good? Why or why not?
• Why are perfectly competitive markets considered efficient? Be specific.
• Why is it important to have macroeconomic policies in place, in South Africa?
• Why are discount rates used in the practice of environmental economics?
• Why do perfectly competitive (PC) firms earn zero economic profit in the long run?
• Why does a lower strike price lead to a higher premium for call options and a lower premium for put options?
• Why have most developing countries followed inward-oriented development strategies?
• Explain why culture should play a role in developing a corporate strategy.
• Describe one reason why the flexibility of wages and prices tends to favor the Keynesian economic view in the short run and one reason why the flexibility of wages and prices tends to favor the classical economic view in the long run.
• Why is it important for a profit-maximizing firm to consider market structure when determining the price and output of its product or service?
• Why did Burberry initially choose a licensing strategy to expand its presence in Japan?
• If capital is imperfectly mobile (with BP flatter than LM), explain why governments find fiscal policy less effective under flexible rates compared to fixed rates.
• Why might a firm continue to produce in the short run even though the market price is less than its average total costs?
• Why is the geographic diversification important in the foreign market?
• Explain why including secondary benefits (such as increased economic activity near a new basketball stadium) as a benefit in cost-benefit analysis may lead to incorrect conclusions.
• Why can superstar professional athletes sustain their economic rents?
• Why can't long-run costs exceed short-run costs?
• What is the inherent reason in a centrally planned economy that would make innovation difficult?
• Some companies advertise: "We deal in high volume and pass our savings on to you in the form of lower prices." Why is this?
• Why might the conclusions of a cost-benefit analysis be sensitive to different discount rates?
• Can you explain why firms will sell at any positive price, whenever the marginal cost is higher than the average variable cost in the short-run?
• Why might the price elasticity of supply be different in the long run than a short run?
• Explain why firms stay in business in competitive markets if the economic profit is zero in the long run.
• Why don't supermarkets offer real-time adaptive pricing according to microeconomics principles?
• Why is marginal cost and average cost the same in a perfectly competitive market?
• In the long run, why do perfectly competitive firms earn zero economic profit? Explain
• The U.S. uses a combination of the market price approach and the force (taxes) approach. Why doesn't it just use one or the other to efficiently allocate resources? Explain.