MBA594 Module 4 Theme 1: Economic Rent

Forum Questions

• Think of a contemporary example of economic rent demonstrated in the marketplace. Describe the type of product or service that created the economic rent. What was the product? Why was it introduced (meaning: what problem/niche did it serve)? For the same product or service, discuss how long you feel that the firm had a comparative advantage over others? In your discussion with your colleagues, compare and contrast how different markets (e.g., technology vs. manufacturing) may have had an impact on the length of the comparative advantage.
• Envision yourself as one of the entrepreneurs who worked the development and launch of the product that you listed above. If you were working on the financial analysis and projection of NPV in the future for that product, what types of variables would you have considered in your analysis?

MBA594 Module 4 Theme 2: Maximizing NPV

• Are you aware of any situations in your professional work where the "capital budget" of the organization didn't support the longer-term strategic objectives of the organization? Please share these with your colleagues and discuss what the example was and the implications for this type of disconnect between strategic planning and capital budget execution.
• What are some ways that you would recommend for an organization to better link its strategic objectives with its capital budgeting and investment focus?