BUSI 4940 FINAL EXAM: CH.1 QUESTIONS AND
ANSWERS
Strategy - Answers - A dynamic plan to gain, and sustain, competitive advantage.
Cost Advantage - Answers - An advantage that a firm has over its competitors in
activities associated with producing a product or service, thereby allowing it to produce
the same product at lower
Differentiation Advantage - Answers - An advantage a firm has over its competitors by
making a product more attractive by offering unique qualities in the form of features,
reliability, and convenience that distinguishes it from competing products.
Successful Strategies - Answers - Good strategies have barriers to imitation.
-If competitors can quickly and easily imitate, then it raises all rival's costs without
creating advantage.
How to block the competition? - Answers - - Companies cant or wont imitate
-Resources and capabilities are key to blocking imitation.
Strategic Management Process - Answers - The process by which organization
formulate a plan and allocate resources to achieve competitive advantage that involves
making those four strategic choices.
What Guides Strategy Formulation? - Answers - Mission, SWOT Analysis:
External/Internal
External Analysis Tools - Answers - -SWOT
-Porter's Five Forces
-Price Sensitivity Analysis
-Segmentation Analysis
Internal Analysis Tools - Answers - -SWOT or S/W
- Resource-based available
Corporate Strategy - Answers - Decisions about what markets to compete in, made by
executives at the corporate level of an organization.
Business Unit Strategy - Answers - Decisions about how to gain and sustain advantage,
made at the manager level for each standalone business unit within a company.
Functional Strategy - Answers - Decisions about how to effectively implement the
business unit strategy within functional areas like finance, product development,
operations, information technology, sales and marketing, and customer service.
ANSWERS
Strategy - Answers - A dynamic plan to gain, and sustain, competitive advantage.
Cost Advantage - Answers - An advantage that a firm has over its competitors in
activities associated with producing a product or service, thereby allowing it to produce
the same product at lower
Differentiation Advantage - Answers - An advantage a firm has over its competitors by
making a product more attractive by offering unique qualities in the form of features,
reliability, and convenience that distinguishes it from competing products.
Successful Strategies - Answers - Good strategies have barriers to imitation.
-If competitors can quickly and easily imitate, then it raises all rival's costs without
creating advantage.
How to block the competition? - Answers - - Companies cant or wont imitate
-Resources and capabilities are key to blocking imitation.
Strategic Management Process - Answers - The process by which organization
formulate a plan and allocate resources to achieve competitive advantage that involves
making those four strategic choices.
What Guides Strategy Formulation? - Answers - Mission, SWOT Analysis:
External/Internal
External Analysis Tools - Answers - -SWOT
-Porter's Five Forces
-Price Sensitivity Analysis
-Segmentation Analysis
Internal Analysis Tools - Answers - -SWOT or S/W
- Resource-based available
Corporate Strategy - Answers - Decisions about what markets to compete in, made by
executives at the corporate level of an organization.
Business Unit Strategy - Answers - Decisions about how to gain and sustain advantage,
made at the manager level for each standalone business unit within a company.
Functional Strategy - Answers - Decisions about how to effectively implement the
business unit strategy within functional areas like finance, product development,
operations, information technology, sales and marketing, and customer service.
