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NEW QUESTION: 1
Rogcrt Markets is the nation's third largest retail grocery chain, and usually has the largest or second largest market share in every city in which it competes. In its most successful large cities, Rogert has as much as a 25% market share, although its share is sometimes greater in small cities. Rogert is known for its excellent customer service and has a wide variety of grocery selections in almost every part of its stores. Its profit margins on sales are slightly above industry averages, and its return on assets and return on equity are above average.
Rogert has an equity beta of 0.78 and a debt-to-capital ratio of approximately 50%. Recent economic difficulties, including higher commodity prices and higher unemployment, resulted in lower profit margins for Rogert. Still, Rogert's decline in profit margin was less than for its competitors. Rogert did not experience substantial losses of sales from customers switching to lower-priced competitors as its market share remained substantially constant.
Zephine Markets is one of Rogert's smaller competitors. Zephine operates in roughly 15% of the same cities as Roger. Zephine is publicly traded, and one of the members of Rogert's board of directors has asked the staff to evaluate an acquisition of Zephine. The staff believes that Zephine is slightly underpriced and that it could be acquired for a 20% premium over its current price. In recommending against the acquisition, staff member Pierre Chiraq says:
"I agree that eliminating Zephine as a rival would probably enhance our profit margins. However, I am skeptical about this acquisition. First, because our market share is almost never dominant, much of the benefit of eliminating a smaller rival will be shared by our other rivals. They will free-ride on our investment.
Second, if our profit margins do increase, wc will eventually attract new rivals into our markets. And finally, our cost of capital should increase substantially because the firm will be diversifying horizontally instead of vertically, increasing the firm's risk." Over the last several years, grocery industry growth has tended to follow the general economy. The competitors in the industry, like Rogert, compete for market share in a stable industry. The industry's cyclical behavior has shown stable performance in both the ups and downs of the business cycle.
In assessing Rogert's competitive position, Chiraq makes comments about the threat of new entrants:
"My concern about new entrants into our business is low for several reasons. Economies of scale are achievable at a low size of operations relative to that of our firm. Our brand identity is high in the markets in which we compete. And, finally, access to distribution channels is difficult to achieve in the grocery business. While there are many competitive forces that concern mc, new entrants is low on my list." Finally, the staff discusses industry changes that might have a negative effect on Rogert's industry position. Three phenomena are mentioned that could have such an effect. They are:
1. Industry growth rates are low and declining;
2. Several suppliers are sponsoring national television advertisements for their products;
3. The government has approved a new method of extending the shelf life of fruits and vegetables.
Rogert's success can be attributed to:
A. decreasing barriers to entry into the industry.
B. maintaining its bargaining power with its customers.
C. increasing the rivalry among existing competitors.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Rogert's success is due, in part, to maintaining its bargaining power with its customers. It has a high profit margin and is able to maintain that margin even in a tough economic environment. (Study Session 11, LOS
37.b)
NEW QUESTION: 2
What is managed by the client in a Platform as a Service (PaaS) environment?
A. Applications and data.
B. None of the above. The entire stack is managed by the cloud service provider.
C. Runtime, middleware, OS.
D. Compute, storage, network.
Answer: C
NEW QUESTION: 3
EIGRP OTP実装でのLISPカプセル化について正しい説明はどれですか。
A. OTPは動的マルチポイントトンネリングにLISPカプセル化を使用します
B. OTPはLISPカプセル化を使用してネイバーからルートを取得します
C. LISPはネクストホップを学習します
D. OTPはLISPコントロールプレーンを維持します
Answer: D
Explanation:
Explanation
The EIGRP Over the Top solution can be used to ensure connectivity between disparate EIGRP sites. This feature uses EIGRP on the control plane and Locator ID Separation Protocol (LISP) encapsulation on the data plane to route traffic across the underlying WAN architecture. EIGRP is used to distribute routes between customer edge (CE) devices within the network, and the traffic forwarded across the WAN architecture is LISP encapsulated.
EIGRP OTP only uses LISP for the data plane, EIGRP is still used for the control plane. Therefore we cannot say OTP uses LISP encapsulation for dynamic multipoint tunneling as this requires encapsulating both data and control plane traffic -> Answer 'OTP uses LISP encapsulation for dynamic multipoint tunneling' is not correct.
In OTP, EIGRP serves as the replacement for LISP control plane protocols (therefore EIGRP will learn the next hop, not LISP -> Answer 'LISP learns the next hop' is not correct). Instead of doing dynamic EID-to-RLOC mappings in native LISP-mapping services, EIGRP routers running OTP over a service provider cloud create targeted sessions, use the IP addresses provided by the service provider as RLOCs, and exchange routes as EIDs. Let's take an example:
If R1 and R2 ran OTP to each other, R1 would learn about the network 10.0.2.0/24 from R2 through EIGRP, treat the prefix 10.0.2.0/24 as an EID prefix, and take the advertising next hop
198.51.100.62 as the RLOC for this EID prefix. Similarly, R2 would learn from R1 about the network 10.0.1.0/24 through EIGRP, treat the prefix 10.0.1.0/24 as an EID prefix, and take the advertising next hop 192.0.2.31 as the RLOC for this EID prefix. On both routers, this information would be used to populate the LISP mapping tables. Whenever a packet from 10.0.1.0/24 to
10.0.2.0/24 would arrive at R1, it would use its LISP mapping tables just like in ordinary LISP to discover that the packet has to be LISP encapsulated and tunneled toward 198.51.100.62, and vice versa. The LISP data plane is reused in OTP and does not change; however, the native LISP mapping and resolving mechanisms are replaced by EIGRP.