Sunk Costs and the Variability of Firm Value Over Time

“…The success achieved includes that they have established more than 30,000 franchising stores in 119 countries, serving more than 47 million people each day, and generating about $15 billions revenues annually. And with its focus on risk aversion, McDonalds' can expand abroad only once they have exhausted opportunities within their home market, and that they then expand first in market that share similar culturally or in close geographic proximity to those they are already in, and that they exhaust opportunities in each market before moving into new ones (Lambson & Jensen, 1995) [10] . How can Mc.…”

Section: Introductionmentioning

confidence: 99%

Customization and standardization of the business strategy of foreign enterprises in Vietnam. The McDonald’s case and the fast food sector

Tien¹

2019

Int. J. Res. Marketing Manage. Sales

View full text Add to dashboard Cite

The 21st century brings together a number of changes in all fields. The market evolved continuously and it is becoming more and more difficult for businesses to differentiate from their competitors and to gain and maintain a leader position in their industry. When it comes to business strategies and market approach, how some foreign typical brands in fast food industry have conducted in terms of global and multinational approach, in particular, customization and standardization Factors. The purpose of this paper is to study, demonstrate to some critical strategies of foreign businesses such as Mc. Donald's brand as one of the most successful fast food chain in the world. This paper is organized as follows: in the first section, I will give brief introduction to the first step of it into Vietnam market parallel with some results of analyzing particular strategies used by Mc. Donald's and how these strategies are effective. Then, in comparison with other typical brands like KFC and Lotteria is to illustrate and contrast clearly. Finally, the paper will debate about positive efficiencies as well as corporate social responsibilities.

show abstract

“…6 Manne (1965). 7 For a more detailed discussion on …rm and industry dynamics see Caves (1998), Sutton (1997), Dune Roberts and Samuelson (1989a,b) and Lambson and Jensen (1995).…”

Section: Literaturementioning

confidence: 99%

“…As a result, large exiting …rms qualify 30 to participate in the acquisition market becoming target …rms (potential acquirees) that …nd the o¤ers from acquirers to be higher than the scrap value s, while relative small …rms are dissolved and get s per unit of capital.…”

Section: Equilibrium In the Market For Corporate Controlmentioning

confidence: 99%

See 1 more Smart Citation

Entry, exit and mergers: a competitive equilibrium model with financial frictions

Fossati¹

View full text Add to dashboard Cite

This paper examines a dynamic stochastic model of a competitive industry with heterogeneous …rms that allows for entry, exit and mergers of …rms in equilibrium. The model we build is an extension of a modi…ed version of Jovanovic and Rousseau's (2002) model that introduces …nancial frictions, describes the market for corporate control and endogenizes its equilibrium price, and develops a stationary equilibrium à la Hopenhayn (1992). It provides a theoretical framework within which to study factors a¤ecting variables such as entry, exit and investment through direct unbundled capital good purchase and mergers. This work contributes to the literature by suggesting another explanation to many empirical regularities and describing one more mechanism through which aggregate liquidity shocks may a¤ect merger activity. The results suggest that due to asymmetric information about entrepreneur's survival probabilities aggregate liquidity shocks may contribute to codetermine the turnover rate of …rms and investment levels through mergers.JEL Classi…cation System: G34,O3,D92

show abstract

Sunk Costs and the Variability of Firm Value Over Time

Cited by 8 publications

References 4 publications

Sunk Costs, Profit Variability, and Turnover

Sunk Costs, Profit Variability, and Turnover

Customization and standardization of the business strategy of foreign enterprises in Vietnam. The McDonald’s case and the fast food sector

Entry, exit and mergers: a competitive equilibrium model with financial frictions

Contact Info

Product

Resources

About