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Question
An investor is considering buying a restaurant that has been in operation for a number of years. The restaurant has a highly regarded chef and many long-term kitchen and wait staff who work together smoothly. It has a reputation for dishes of consistently high quality and an appealing dining atmosphere. What should the investor consider when making a decision?
a. The investor will find that the success of this restaurant is so heavily based on human resources that the business will likely be subject to inertia in the future.
b. The investor will find that the restaurant's financial statements undervalue the true value of its resources.
c. The investor should be aware that intangible assets are difficult to leverage into additional businesses.
d. The investor should search for a firm that has competitive advantages based on tangible resources.
Answer
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Related questions
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a. True
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a. True
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Q:
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Q:
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Q:
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Q:
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Q:
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a. Autonomy
b. Reactivity
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Q:
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a. True
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a. True
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a. True
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a. True
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a. True
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Q:
What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational culture?
Q:
Define the three major dimensions of organizational structure: specialization, centralization, and formalization. How do these dimensions vary in organizations implementing the cost leadership, differentiation, and cost leadership/differentiation strategies?