Author: Anonymous

George has learned that National Timber is considering selling its business to the highest bidder. National Timber is also family owned, but the younger generation of the family has little interest in continuing to run the business. Acquiring National Timber would not only help secure a source of wood, but would also open up Georgia Lumber Company to selling wood to other regional firms similar to itself and Alabama Woods. George understands the risk associated with the initiative and the likely high “price tag” for National Lumber, but this initiative alone if successful, would exceed Otis Thomsan’s 50% growth objective. This initiative, if approved by Mr. Thomson, could best be described as a ________________ strategy.

Match the framework to the characteristic or purpose that best describes it. Each correct answer counts 2 points, 16 points maximum. Note that a match from the list of answers can only be used once.

Which of the following concepts/frameworks were developed by Michael Porter (check all that apply). HINT: There are four correct answers

What aspect of validity assesses the extent to which your measure is able to discriminate between different groups?

That reality is socially constructed and cannot be generalized are assumptions of which approach to research?

Which one(s) of the following statements are True (May be more than one correct answer).

George is considering acquiring Alabama Woods. Like The North Georgia Products SBU, Alabama Woods, sells lumber specifically milled for barns and other farm related out buildings directly to its customers through a company owned store.  The store is located in Muscle Shoals (Alabama), near the Mississippi state line. Unlike  North Georgia Products, Alabama Woods also sell product through its robust eCommerce website. George is considering buying Alabama Woods, but running it as a separate SBU. The firm would not be consolidated into a single SBU with North Georgia Products; instead The Georgia Lumber Company would be run as 3 SBUs with a corporate “umbrella”.  Alabama Woods would continue to focus its physical store on its Alabama customers while extending its eCommerce capabilities to the Georgia Lumber Company to service North Georgia Products retail customers. That said, the eCommerce capabilities are not a driver of the strategy and would merely be considered a potential benefit of the acquisition. This initiative, if approved by Otis Thomsan, could best be described as  a _____________ strategy

The Resource Based View assumes that the firm’s mix of resources is heterogenous (unique) and ___________.

Competitive Markets Consider a village’s competitive market for rice. The daily market demand for rice (in bushels per day) is given by the equation: Q = 9 – ½P or (equivalently) P = 18 – 2Q The market supply of rice is given by the equation: Q = P – 3 or (equivalently) P = 3 + Q These equations are plotted below (with some labels missing that you will be asked to fill in): Given this information, answer the following: (3 p.) Using the equations for demand and supply given in the instructions above, find the value of the intercepts A, B, and C given in the figure above. (3 p.) What is price and quantity of rice in competitive equilibrium? (In other words, find P­­* and Q*.) Why is this equilibrium a Nash equilibrium? (3 p.) Is the competitive equilibrium efficient? Why or why not? (3 p.) Calculate producer and consumer surplus in equilibrium. (3 p.) Suppose now that supply increases to Q = P – 2 or equivalently P = 2 + Q. Recalculate consumer surplus given the new supply. (HINT: Intercept B has changed.) Has consumer surplus increased or decreased?

Which of the following is an example of something being measured at the nominal level?