A good example of a company's resources does not include

Question

BlackTom AI · Accepted Answer

To tackle this question, we examine what counts as a company's resources versus other assets or metrics.
Option a: 'fruitful partnerships or alliances with suppliers that reduce costs and/or enhance product quality and performance' These are classic examples of valuable resources—they are tangible or intangible assets that the firm can draw upon to create value.
Option b: 'having higher earnings per share and a higher stock price than key rivals' This is a market-based performance measure, not a resource the company possesses or controls. EPS and stock price reflect investor perceptions and market conditions, not an internal asset or capability the firm can deploy.
Option c: 'more intellectual capital and better e-commerce capabilities than rivals' Intellectual capital (know-how, patents, skills) and superior e-commerce capabilities are clear resources or capabilities, contributing to a firm’s competitive advantage.
Option d: 'a lower-cost value chain than rivals' A lower-cost value chain represents an operational capability or resource that enables cost leadership, which is a valuable asset the company can leverage.
Collectively, options a, c, and d describe actual resources or capabilities a company can use, while option b describes external financial performance metrics, not a dedicated resource. Therefore, option b is the item that does not illustrate a company resource.

Dashboard Practice quizzes based on Lecture 3

A good example of a company's resources does not include

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