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NEW QUESTION: 1
Rogcrt Markets is the nation's third largest retail grocery chain, and usually has the largest or second largest market share in every city in which it competes. In its most successful large cities, Rogert has as much as a 25% market share, although its share is sometimes greater in small cities. Rogert is known for its excellent customer service and has a wide variety of grocery selections in almost every part of its stores. Its profit margins on sales are slightly above industry averages, and its return on assets and return on equity are above average.
Rogert has an equity beta of 0.78 and a debt-to-capital ratio of approximately 50%. Recent economic difficulties, including higher commodity prices and higher unemployment, resulted in lower profit margins for Rogert. Still, Rogert's decline in profit margin was less than for its competitors. Rogert did not experience substantial losses of sales from customers switching to lower-priced competitors as its market share remained substantially constant.
Zephine Markets is one of Rogert's smaller competitors. Zephine operates in roughly 15% of the same cities as Roger. Zephine is publicly traded, and one of the members of Rogert's board of directors has asked the staff to evaluate an acquisition of Zephine. The staff believes that Zephine is slightly underpriced and that it could be acquired for a 20% premium over its current price. In recommending against the acquisition, staff member Pierre Chiraq says:
"I agree that eliminating Zephine as a rival would probably enhance our profit margins. However, I am skeptical about this acquisition. First, because our market share is almost never dominant, much of the benefit of eliminating a smaller rival will be shared by our other rivals. They will free-ride on our investment.
Second, if our profit margins do increase, wc will eventually attract new rivals into our markets. And finally, our cost of capital should increase substantially because the firm will be diversifying horizontally instead of vertically, increasing the firm's risk." Over the last several years, grocery industry growth has tended to follow the general economy. The competitors in the industry, like Rogert, compete for market share in a stable industry. The industry's cyclical behavior has shown stable performance in both the ups and downs of the business cycle.
In assessing Rogert's competitive position, Chiraq makes comments about the threat of new entrants:
"My concern about new entrants into our business is low for several reasons. Economies of scale are achievable at a low size of operations relative to that of our firm. Our brand identity is high in the markets in which we compete. And, finally, access to distribution channels is difficult to achieve in the grocery business. While there are many competitive forces that concern mc, new entrants is low on my list." Finally, the staff discusses industry changes that might have a negative effect on Rogert's industry position. Three phenomena are mentioned that could have such an effect. They are:
1. Industry growth rates are low and declining;
2. Several suppliers are sponsoring national television advertisements for their products;
3. The government has approved a new method of extending the shelf life of fruits and vegetables.
Rogert's success can be attributed to:
A. increasing the rivalry among existing competitors.
B. decreasing barriers to entry into the industry.
C. maintaining its bargaining power with its customers.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Rogert's success is due, in part, to maintaining its bargaining power with its customers. It has a high profit margin and is able to maintain that margin even in a tough economic environment. (Study Session 11, LOS
37.b)
NEW QUESTION: 2
An engineer is using a cascading feature with Cisco TelePresence Conductor and Cisco TelePresence Servers.
Which two limitations will the engineer likely encounter? (Choose two.)
A. Ad-hoc conferencing cascading is supported only with three or more Cisco TelePresence Servers.
B. Only single-screen endpoints are supported through cascading links.
C. Ad-hoc conferencing cascading is not supported.
D. Scheduled conferencing is not supported.
E. Multiple-screen endpoints are supported only with three or more Cisco TelePresence Servers.
Answer: C,D
NEW QUESTION: 3
As illustrated in the above diagram, a company has two campus locations and a building headquarters all located in different cities.
Following best practices, what would be the best way to construct mobility domains for the company?
A. Buildings (1) in one domain building (4) in one domain
B. Buildings (1, 2) in one domain and Buildings (3, 4, 5, 6) in one domain
C. Buildings (1, 2) in one domain, Building (3) in one domain, and Buildings (4, 5, 6) in one domain
D. Buildings (1, 2, 3, 4, 5, 6) in one domain
E. Buildings (1, 2, 4, 5, 6) in one domain and Building (3) in one domain
Answer: C
NEW QUESTION: 4
Your network contains an Active Directory forest. The forest contains two domains named contoso.com and fabrikam.com. All of the DNS servers in both of the domains run Windows Server 2012.
The network contains two servers named Server1 and Server2. Server1 hosts an Active Directory-integrated zone for contoso.com. Server2 hosts an Active Directory-integrated zone for fabrikam.com. Server1 and Server2 connect to each other by using a WAN link.
Client computers that connect to Server1 for name resolution cannot resolve names in fabrikam.com.
You need to configure Server1 to resolve names in fabrikam.com. The solution must NOT require that changes be made to the fabrikam.com zone on Server2.
What should you create?
A. a secondary zone
B. a stub zone
C. a trust anchor
D. a zone delegation
Answer: B
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