BME02 Strategic Management in Tourism and Hospitality

The first thing to pin down is the company's competitive approach

• True

• False

In determining how well a company's present strategy is working, a manager has to start with what the strategy is

• True

• False

Another strategy is the firm's _____________ within the industry, i.e., what its geographic market coverage is and whether it operates in just a single stage of the industry's production and/or rendition of various services or is vertically integrated across several stages.

A bad indication of the company's strategy is whether the company has made moves recently to improve its competitive position or performance like cutting prices, improving the design, stepping up advertising, entering a new geographic market, or merging with a competitor.

• True

• False

Answer explanation

It is a good indication

It requires that evaluators examine the firm's portfolio of resources and the bundles of heterogeneous resources and capabilities managers have created.

Understanding how to leverage the firm's ______________________ is a key outcome decision-makers seek when analyzing the internal environment

It is often considered the single best measure of a firm's competitive position and overall attractiveness to investors

A firm's liquidity, leverage, working capital, profitability, asset utilization, cash flow, and equity can eliminate some strategies as being feasible alternatives.

• True

• False

The three decision comprises the functions of finance/accounting according to James Van Horne.

The investment decision, also called capital budgeting, is the allocation and reallocation of capital and resources for projects, products, assets, and divisions of an organization.

• True

• False