Accounting Information Systems
11th Edition
ISBN: 9781337676557
Author: Ulric J. Gelinas; Richard B. Dull; Patrick Wheeler
Publisher: Cengage Learning US
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Question
Chapter 15, Problem 7P
Summary Introduction
To determine: The two companies in which one thrived in a global market and the one that has failed.
Introduction:
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Strategy and a Company's Business Model
Read the overview below and complete the activities that follow.
While the company’s strategy sets forth an approach to offering superior value, a company’s business model is management’s blueprint for delivering a valuable product or service to customers in a manner that will yield an attractive profit. In this exercise you will be asked to evaluate the business model for SiriusXM.
The two elements of a company’s business model are (1) its customer value proposition and (2) its profit formula. The customer value proposition is established by the company’s overall strategy and lays out the company’s approach to satisfying buyer wants and needs at a price the customer will consider to be a good value. The greater the value provided and the lower the price, the more attractive the value proposition is to customers. The profit formula describes the company’s approach to determining a cost structure that will allow for acceptable profits given…
Strategy and a Company's Business Model
Read the overview below and complete the activities that follow.
While the company’s strategy sets forth an approach to offering superior value, a company’s business model is management’s blueprint for delivering a valuable product or service to customers in a manner that will yield an attractive profit. In this exercise you will be asked to evaluate the business model for SiriusXM.
The two elements of a company’s business model are (1) its customer value proposition and (2) its profit formula. The customer value proposition is established by the company’s overall strategy and lays out the company’s approach to satisfying buyer wants and needs at a price the customer will consider to be a good value. The greater the value provided and the lower the price, the more attractive the value proposition is to customers. The profit formula describes the company’s approach to determining a cost structure that will allow for acceptable profits given…
Consider the following series of independent situations in which a firm is about to make a strategic decision.
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(Click
the icon to view the decisions.)
Requirements
1.
For each decision, state whether the company is following a cost leadership or a product differentiation strategy.
2.
For each decision, select what information the managerial accountant can provide about the source of competitive advantage for these firms.
Requirement 1. For each decision, state whether the company is following a cost leadership or a product differentiation strategy.
Decisions
a.
A running shoe manufacturer is weighing whether to purchase leather from a cheaper supplier in order to compete with lower-priced competitors.
▼
b.
An office supply store is considering adding a delivery service that its competitors do not have.
▼
cost leadership strategy
product differentiation strategy
c.
A regional retailer is deciding…
Chapter 15 Solutions
Accounting Information Systems
Ch. 15 - Prob. 1RQCh. 15 - Explain the three key drivers of complexity in...Ch. 15 - Describe the three key characteristics of...Ch. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - a. How are a bill of materials (BOM) and a routing...Ch. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Why is inventory management and control important...Ch. 15 - Prob. 21RQCh. 15 - Prob. 1DQCh. 15 - Prob. 3DQCh. 15 - What industry do you believe is a leader in...Ch. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - In addition to the industries mentioned in...Ch. 15 - A main goal of JIT is zero inventories. a. Assume...Ch. 15 - Prob. 11DQCh. 15 - Discuss how the inventory process supports the...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 1SPCh. 15 - Prob. 2SPCh. 15 - Prob. 3SPCh. 15 - Prob. 4SPCh. 15 - Prob. 5SPCh. 15 - Study Figure 15.8, showing the level 0 DFD of the...Ch. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Prob. 7P
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- What is Dell’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?arrow_forwardUnderstanding today’s business environmentMatch the following terms to the appropriate statement. Some terms may be used more than once, and some terms may not be used at all. a. A management system that focuses on maintaining lean inventories while producing products as needed by the customer. b. A philosophy designed to integrate all organizational areas in order to provide customers with superior products and services while meeting organizational objectives. c. Integrates all of a company’s functions, departments, and data into a single system. d. Adopted by firms to conduct business on the Internet.arrow_forwardManagerial accounting is concerned with providing information to managers so they may make business decisions that satisfy customers while continuously monitoring costs and improving efficiencies. Some reports provide timely updates on key indicators while others investigate problems such as declined profitability. Please list a report or activity you learned about in managerial accounting which would be useful if implemented in either a) a current or past place of employment or b) your personal life. Describe how the report would help in your job or personal life.arrow_forward
- Which of the following types of organizations can most benefit from value chain analysis? Multiple Choice Service firms. All types of organizations can benefit from value chain analysis. Not-for-profit organizations. Manufacturing firms.arrow_forwardExplain what is meant by the following statement: “In considering the reactions of competitors, it is crucial to define your product.”arrow_forwardA fairly recent technology-related tool that many companies use to solicit feedback from customers about the company’s existing or upcoming products is a. market segmenting. b. customer relationship management. c. consumer buying behavior. d. sales forecasts. e. social media.arrow_forward
- Which description best fits Chester in your industry? For clarity: - A differentiator competes through good designs, high awareness, and easy accessibility. - A cost leader competes on price by reducing costs and passing the savings to customers. - A broad player competes in all parts of the market. - A niche player competes in selected parts of the market. Which of these four statements best describes this competitor? A Chester is a global broad differentiator. B Chester is a global niche cost leader. C Chester is a global niche differentiator. D Chester is a local broad cost leader.arrow_forwardBalanced scorecard. Following is a random-order listing of perspectives, strategic objectives, and performance measures for the balanced scorecard. For each perspective, select those strategic objectives from the list that best relate to it. For each strategic objective, select the most appropriate performance measure(s) from the list.arrow_forwardA company’s attempts to utilize sustainable business practices with regard to its employees, the environment, and society are known as ________. Select one: a. corporate social responsibility b. value chain c. total quality management d. a balanced scorecardarrow_forward
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