I’m stuck on a Economics question and need an explanation.
Paraphrase all answers from 10 questions in the files i link below (i count it around 1000words)
P/s: I bold all answers need to paraphrase in the files already, please take a look carefully. Thank you!!
1. Use the articles, “Divergent unveils part-3D printed supercar” on page 1 and “Google hopes all or nothing bet on robot cars will pay off soon,” on page 3 in answering the following questions concerning commitment:(14points) a.What is meant by the term "commitment"? (2 points) b.What is Google’s commitment, as described in that article? (2 points) c.What are the three characteristics that distinguish a strategic move as creating a strong commitment? (3 points) d.Is Divergent making a strong commitment to develop a high- performance, lightweight car? (3 points) e.What is meant by the term "real option"? (2 point) f.Explain Divergent’s commitment in terms of Divergent’s real options. (2 points) a. Commitment is defined as a decision which is strategic with a long term impact on the rival moves or rather rival expectations and that require great investment in terms of energy, time, and difficult to reverse. b. Google’s commitment is successfully market an autonomous car. Their large investment is on the production and innovation alongside making its products known publicly. c. Characteristics which differentiate strategic move from creating a strong commitment lies in the move which should be understandable, visible, and creditable. In addition, strong commitment should be irreversible and is mean to negatively affect the profits of the rivals and benefit the host firm. d. It is true that Divergent is making a strong commitment. This has been attributed by the fact that they have invested a lot on both time and energy, and the firm is well known to the public. The firm is also in the move to raise extra capital of $10m in order to build a plant. e. Real option can be defined as the flexibility of a plan to adequately create opportunities which allow change in the event of a new information in the future. f. The real option available to Divergent as a commitment is to build the new plant which will allow the firm to reduce the variable costs and have the opportunity to outsource steps such as assembly which could be down in local small plants if the costs are lower depending on the market environment. 2. Using the article, “Federal Panel Backs Approval of New Drug to Fight Heart Attacks” on page 2, select one of these 3 firms mentioned in the article: Sanofi, Regeneron Pharmaceuticalsand Amgen; and then answer the following questions for the firm you’ve chosen: