BUS 401 || with Error-free Answers.
Business Strategy correct answers a company's dynamic plan to gain and sustain competitive
advantage in the marketplace that involves making 4 interrelated strategic choice
4 strategic choices of a business strategy correct answers MURW
1) markets to compete in
2) unique value the firm will offer in those markets
3) resources/capabilities required to offer that unique value better than competitors
4) ways to sustain the advantage by preventing imitation. (Barriers to imitation)
All strategies are framed by these four questions
competitive advantage correct answers firm generatges higher profits compared to its
competitors
above average profits correct answers Returns in excess of what an investor expects from other
investments with similar risk
strategic management process correct answers process where orgs. formulate a plan and allocate
resources to achieve a plan by applying same 4 business strategy choices
Strategic management:
Analysis
Strategic decisions
Actions
internal analysis correct answers analysis of a firms resources and capabilities (Strengh and
weaknesses) to assess how effectively the firm is able to deliver the unique value it hopes to
provide customers
,resources and capabilities, strengths/weaknesses
markets correct answers Leaders must choose the industries, customer segments, and geographic
location the company will compete it
Unique Value correct answers "a company's value proposition". The reason a firm wins or the
value it offers to create competitive advantage.
two generic strategies for offering unique value: low cost or differentiation advantage.
Cost advantage correct answers the unique value offered to customers is lower-priced products or
services compared to competitors
include economies of scale, lower-cost inputs, or proprietary production know-how.
(internal)
differentiation advantage correct answers unique value from offering features, quality,
convenience, or image that customers cannot get from competitors.
(external)
Resources and capabilities correct answers Resources: assets that the firm has such as plants,
equipment, land, knowledge, brands, patents, cash, and people.
Capabilities: procedures, processes, routines, or recipes the firm develops to achieve specific
goals in activites.
Unique value requires developing resources and capabilities that will allow the company to
perform better than competitors.
, Competitive advantage requires that the company do all of the following correct answers Provide
unique value to a set of customers in the appropriate market. Develop a set of resources and
capabilities that allow the company to deliver that unique value to customers better than
competitors. Sustain the competitive advantage by figuring out how to prevent imitation of the
chosen strategy.
Mission correct answers Company's primary purpose and often specifies the businesses the firm
intends to compete, or the customers it intends to serve.
External Analysis correct answers analysis of forces that influence industry attractiveness,
including opportunities and threats in the environment.
involves:
(1) INDUSTRY ANALYSIS: examination of competition and forces that shape industry
competition and profitability
(2) CUSTOMER ANALYSIS: understand what customers really want. Look at price sensitivity
and segmentation analysis
Answers: Where should we compete?
(the OT in SWOT)
Internal analysis correct answers focuses on company itself
involves an analysis of the company's set of resources and capabilities that can be deployed to
deliver unique value to customers.
resource-based review of firm: Determining the strategic resources available to a company.
Business Strategy correct answers a company's dynamic plan to gain and sustain competitive
advantage in the marketplace that involves making 4 interrelated strategic choice
4 strategic choices of a business strategy correct answers MURW
1) markets to compete in
2) unique value the firm will offer in those markets
3) resources/capabilities required to offer that unique value better than competitors
4) ways to sustain the advantage by preventing imitation. (Barriers to imitation)
All strategies are framed by these four questions
competitive advantage correct answers firm generatges higher profits compared to its
competitors
above average profits correct answers Returns in excess of what an investor expects from other
investments with similar risk
strategic management process correct answers process where orgs. formulate a plan and allocate
resources to achieve a plan by applying same 4 business strategy choices
Strategic management:
Analysis
Strategic decisions
Actions
internal analysis correct answers analysis of a firms resources and capabilities (Strengh and
weaknesses) to assess how effectively the firm is able to deliver the unique value it hopes to
provide customers
,resources and capabilities, strengths/weaknesses
markets correct answers Leaders must choose the industries, customer segments, and geographic
location the company will compete it
Unique Value correct answers "a company's value proposition". The reason a firm wins or the
value it offers to create competitive advantage.
two generic strategies for offering unique value: low cost or differentiation advantage.
Cost advantage correct answers the unique value offered to customers is lower-priced products or
services compared to competitors
include economies of scale, lower-cost inputs, or proprietary production know-how.
(internal)
differentiation advantage correct answers unique value from offering features, quality,
convenience, or image that customers cannot get from competitors.
(external)
Resources and capabilities correct answers Resources: assets that the firm has such as plants,
equipment, land, knowledge, brands, patents, cash, and people.
Capabilities: procedures, processes, routines, or recipes the firm develops to achieve specific
goals in activites.
Unique value requires developing resources and capabilities that will allow the company to
perform better than competitors.
, Competitive advantage requires that the company do all of the following correct answers Provide
unique value to a set of customers in the appropriate market. Develop a set of resources and
capabilities that allow the company to deliver that unique value to customers better than
competitors. Sustain the competitive advantage by figuring out how to prevent imitation of the
chosen strategy.
Mission correct answers Company's primary purpose and often specifies the businesses the firm
intends to compete, or the customers it intends to serve.
External Analysis correct answers analysis of forces that influence industry attractiveness,
including opportunities and threats in the environment.
involves:
(1) INDUSTRY ANALYSIS: examination of competition and forces that shape industry
competition and profitability
(2) CUSTOMER ANALYSIS: understand what customers really want. Look at price sensitivity
and segmentation analysis
Answers: Where should we compete?
(the OT in SWOT)
Internal analysis correct answers focuses on company itself
involves an analysis of the company's set of resources and capabilities that can be deployed to
deliver unique value to customers.
resource-based review of firm: Determining the strategic resources available to a company.
