A Firm's history is given in a timeline from its inception in Year 1995 to Current Year:

1995Invented and filed patent for software that improved production process.

1997Introduced new innovations that went on the market at low price.

1999Major sales growth with expansion of the market share.

2000Another firm emerges as a serious competitor with new technology.

2003Management observing its products are not doing good business decides to diversify.

2006New chief executive takes up position.

2007Firm abandons its low profit businesses to begin to invest in new products.

2010Firm filed a petition against anti-competitive trade practices but lost the case.

2012Becomes a high-cost manufacturer with a growing portfolio of products which was losing

hundreds of millions of dollars annually.

2014Restructuring that eliminated 10,000 jobs and cut more than $1 billion from annual costs.

2015New CEO took over reigns of the firm. To raise money, begins selling patent of select

portfolio and concentrates on narrow product line.

2018Entered new markets by pushing aggressively into China, an important growth market.

2020Share price improves/increases.

a.Explain the fundamental factors considered when making decisions to achieve various goals of a firm?

b.State the six steps in managerial decision making that lead to competitive advantage?

c.Using the 'Four Stage Model', describe your observations of the Firm's changing 'Economics of Business'.