B541 Mid-Term Exam

B541 Mid-term Exam

Fall 2016

Name______

1. The Federal Reserve is charged with maximum employment and price stability. What key economic indicators do they monitor and where are they in achieving the goals?

Maximum Employment:

Price Stability

2. In American Cyanamid, what are the potential sources of value creation in the merger? Are they likely to succeed based on past performance? 3. In Costco, what are the three steps Torres used to analyze the company? Explain briefly the information she is trying to get in each step.

4. In Safeway, what were the sources of cash for the LBO? Eventually, how do they reduce the mountain of debt? 5. In Competition Demystified, what are three types of genuine competitive advantages building Barrier to Entry? Explain each

6. Initially, how did Walmart build its Competitive Advantage? Why was Coors less successful in its attempt to expand beyond its base?