1. What is the difference between a ve-forces analysis and an analysis of competitive-advantage sustainability? 2. How is sustainability affected by the presence of economies of scale? 3. A rm's idea or product must be what two things in order to sustain long run competitive advantage? 4. Coke and Pepsithese two brands have sustained their competitive advantage for 100 years and are still going strong. GM and Ford they had a time of dominance but competition has taken away their competitive advantage. Why is this? What is the difference between the two sets of companies (HINT: don't forget about the differences in the products they sell)? 5. Which of the following situations would likely lead to a rst-mover advantage? 1. A team of US rms produces the rst HD Television. 2. A coffee company invents and introduces the rst freeze-dried coffee. 3. Target opens a store in a remote portion of Alaska. 4. Glaxo-Smith-Kline introduces the rst treatment for COVID-19. 6. What is the winner's curse and how can rms prevent it? Give a real-world example of a situation that could lead to the winner's curse, and how could the rm prevent it? 7'. Think about the format war between HD DVD and Blu-Ray (which, by the way, I ended up on the wrong side of. In 2007, I bought an HD DVD player and now it's worthless). Explain the "in the market" vs "for the market" decision that Toshiba (HD DVD) and Sony (Blu-Ray) faced. What are the various issues that the rms must have considered as they entered the war? 8. What is creative destruction? Give an example. Do all industries have the same amount of creative destruction? Why or why not? 9' What is the Resource-Based theory of the rm? 10. What does it mean for a resource to be mobile? For mobile resources, to whom does the advantage accrue? 11. Pick a company that has sustained a competitive advantage for many years. What isolating mechanisms has the rm relied upon? What improvements could be made? 4. Suppose you receive an offer from another firm who is trying to steal you away. Which one (or both) should Aldi increase in order to keep you? 5. One month after graduation, you are offered a job selling luxury box tickets for the New England Patriots organization. 1. In scenario 1, your pay includes a bonus of $10,000 if your yearly sales are $1,000,000 or more, but no bonus otherwise. What are some actions you may take because of the particular incentives of this pay-for-performance contract, even though the firm may NOT want you to do them? 2. In scenario 2, you are paid a bonus of $10,000 if your sales are more than the other sales people. What are some actions you may take because of the particular incentives of this pay-for-performance contract, even though the firm may NOT want you to do them? 3. What kind of pay-for-performance scheme(s) could be implemented to prevent the problems above? 6. When is it better to use relative performance as the pay-for-performance metric? 7. How does a promotion tournament work? What is required for a promotion tournament to encourage employees to work their hardest? 8. In March 2022, Morgan Stanley CEO James Gorman famously told his employees that they could no longer work from home. "Workers at home are in 'Jobland,' and workers in the office are in 'Careerland," he said. "We need to be together in 'Careerland' where we do our best, work hard, and push each other to do the best job we can do. Speed and quality are often sacrificed when we work from home." Could these speed and quality issues actually be manifestations of agency problems? If so, what are the differences in objectives between the firm and the firm's employees? How does working from home limit the ability of the firm to control these agency problems? Finally, is there another option(s) that could be explored, other than requiring people to work from the office?1. What is an agency (principal-agent) relationship? What is the principal-agent problem? 2. Identify three different examples of an agency relationship. What kind of hidden (asymmetric) information might be present in each example? In other words, is there a principal-agent problem, and what specically causes it? 3. Suppose you are choosing between hiring two different lawyers. The rst charges 30% of the award (if you win), and the other charges $250 per hour. Discuss the pros and cons of each, from your perspective (you are the principal here). How is this connected with pay~forperforrnance contracts? 4. Three years after graduation, you are offered a job as a divisional manager at Aldi's. You are paid F + (a x revenue), where F is a xed salary in dollars and a is a fraction (o