The analysis of industry structure. The concept of market structure has proven to be very useful in informing both research and government policy. However, the concept can sometimes be inconvenient to use to identify threats in a company’s local environment.22 Michael E. Porter’s well-known analytical framework, the Five Forces model, is essential in identifying opportunities and threats facing a specific company in an industrial context. Porter developed two important assumptions that form the basis of his five forces model: (1) rather than defining competition narrowly as rivalry to explain and predict a firm’s performance, competition must be viewed more broadly through considering the other forces in an industry, (2) the profit potential of an industry is a function of the five forces that shape competition.

A company, which can surpass its competitors or the industry average over an extended period, has a sustainable competitive advantage.

Cash budget presents expected cash inflow and outflow for a designated time period. The correct answer is C. 

Internationally accepted COSO model requires internal controls to be built on the basic components for the purposes of efficient and effective entity operations, reliable financial reporting and compliance with legislations. The correct answer is E; because in an “effective” internal control system, the following five components work to support the achievement of an entity’s mission, strategies and related business objectives:

(1) Control Environment

(2) Risk Assessment

(3) Control Activities

(4) Information and Communication

(5) Monitoring

In option A, Capabilities are a company’s resources, which enable a company to fully take advantage of the other resources it controls. Option B defines core competencies and option D is the value chain. Margin is the difference between value and total costs.

Differing characteristics of leaders and managers are as follows:

Leadership is the process of influencing?others – a group, employees, or followers?depending on the environment- in dynamic?ways towards attaining goals. Goals are?guides for leaders and their followers which?govern the leadership process. Personality?and values shape a person’s leadership skills.?e latter become most influential when?charismatic individuals emerge in times of?crisis—whether generated from external?threats—such as economic crises, changes in?the political environment, or internal threats?such as upending reorganizational change,?succession, and new partnering caused by M&A (mergers and acquisitions), etc. Finally, the acceptance of followers and/or encouragement is where leaders draw most of their power.

Ohio State University studies introduced two basic leadership styles: initiating structure behavior and consideration behavior. Initiating structure is parallel to the task oriented behavior and shows the emphasis on formal processes such as designing roles and responsibilities. The other type is consideration behaviors which are parallel to people-orinted behaviors.

The fourth and final step in the controlling process is evaluating results and taking action. Managers can choose among three possible courses of action:

• Do nothing
• Solve the problem (correct the actual situation)
• Revise the standards.

Michael E. Porter’s well-known analytical framework, the Five Forces model is essential in identifying opportunities and threats facing a specific company in an industrial context. Porter developed two important assumptions that form the basis of his five forces model: (1) rather than defining competition narrowly as rivalry to explain and predict a firm’s performance, competition must be viewed more broadly through considering the other forces in an industry, (2) the profit potential of an industry is a function of the five forces that shape competition.

Concurrent controls are designed to provide immediate feedback so that operations can be changed rapidly to decrease errors or increase quality.

A team is a group of people who interact and coordinate their work together to achieve shared goals. Katzenbach and Smith assert that a team should have a small size and must contain four elements:
• Common commitment and purpose – team members do not perform as individuals but as a powerful unit of collective performance with a purpose they can believe in.
• Performance goals – a common purpose is translated into specific and measurable performance goals which help define work products, facilitates clear communications and maintains focus.
• Complementary skills – a team should develop the right mix of skills or the complementary skills necessary to do the team’s job.
• Mutual accountability – a team must hold itself accountable as a team.

Organizations and their practices are shaped by social, political, economic, and technological forces.

A small team must still have the necessary skills to do the team’s job. These skills include:
• Technical skills in a specific discipline such as finance or market research.
• Problem-solving skills to be able to analyze difficult situations and to craft solutions.
• Interpersonal skills especially the ability to collaborate with others effectively.
• Organizational skills including networking, communicating well with other parts of the firm, ability to navigate political landscape, and to avoidconflict.