Identify an article from the Wall Street Journal within the last six weeks that relates to one of the following topics:
(1) Factors in an organization's external environment that had an impact on the organization.
(2) Factors in an organization's internal environment that had an impact on the organization.
(3) An article that provides examples of an organization exploiting the resources of a competitor to strengthen its competitive advantage.
First, Summarize the article
Next, Discuss what you found interesting, educational, insightful, etc.?
Then, Discuss how the article you found relates to the material you read for this week.
Summarize your post. You should not type the questions, the discussion post should flow as one document. Think of my directions as writing prompts. Each paragraph needs at least 4-5 sentences
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- Question 4 Many companies reward their managers based on profits so that the managers will make decisions to maximize profits. However, some companies are paying their managers based on sales or revenue, instead of profits, so their managers will make decisions to maximize revenue. For example, at Reebok, the former CEO Paul Fireman received a nickel for every pair of shoes sold. a. Suppose that there are two existing firms in the market competing in quantity. Ignore market uncertainty and long-run competition. Firm B's manager is always paid based on firm B's profits. Firm A has been paying its manager based on profits but now changes to pay the manager solely based on revenue. Each manager chooses the production level (quantity) for his firm simultaneously. Is it possible for the above change in firm A's compensation system to increase firm A's profits? What are the direct effects and strategic effects on firm A's profit? Explain. Direct Effect (Circle one): Positive Negative…arrow_forwardMonopolistic competition creates inefficiency because of the markups and excess capacity. The graph below depicts the situation for a hypothetical monopolistically competitive firm. The curves included in the graph are demand (D), marginal revenue (MR), average total cost (ATC), and marginal cost (MC). The graph is not graded, but you can move the point labeled P to help you find the numeric values to answer the questions. Price $ 80 MC M 45 P D ATC Quantity What is the size of the markup on the price? Number $0 What is the size of the excess capacity? Number Unitsarrow_forward1arrow_forward
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