BUSI 4940 Test 1 Questions with Correct Answers 100% Verified by Experts|
2025/2026 Latest Update
Long‐term successful companies are rare...
Only ___%of the Fortune 500 have survived over
the past 50 years.
___% merged, bankrupt, dropped‐out 12%; 88%
Strategy A dynamic plan to gain, and sustain,
competitive advantage.
Hyper-competition technology and globalization have created this change
General environment general factors affects all sorts of different industries i.e. politics,
recession, social, economic, tech, etc.)
Origin of "strategy" Comes from the art of war, where the goal is to win, but that is not the
strategy.
Business strategy A plan to achieve competitive advantage that involves making four
strategic choices: (1) markets to compete in; (2) unique value the firm will offer in those
markets; (3) the resources and capabilities required to offer that unique value better than
competitors; and (4) ways to sustain the advantage by preventing imitation.
Competitive Advantage When a firm generates higher profits compared to its competitors.
unique value The reason a firm wins with customers or the value proposition it offers to
customers, such as a low cost advantage or differentiation advantage.
, The goal of the strategic plan is to create _________ ____________ . competitive
advantage.
To see which firms in an industry are most successful, we typically compare their_______ __
_________ return on assets (ROA)
A firm has a competitive advantage when it can consistently generate ________-_________
________ through a strategy that competitors are unable to imitate or find too costly to
imitate. above-average profits
Above-average profits Returns in excess of what an investor expects from other investments
with a similar amount of risk.
The central task of the strategy formulation process is specifying the high-level plan and set of
actions the company will take in its quest to achieve competitive advantage True
Two generic strategies to offer unique value Cost Advantage and Differentiation strategy
Cost advantage An advantage that a firm has over its competitors in the activities associated
with producing a product or service, thereby allowing it to produce the same product at lower
cost.
i.e. Walmart, Ryanair, Taco Bell, and Kia
Key sources of cost advantage economies of scale, lower-cost inputs, or proprietary
production know-how.
Differentiation strategy 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.
2025/2026 Latest Update
Long‐term successful companies are rare...
Only ___%of the Fortune 500 have survived over
the past 50 years.
___% merged, bankrupt, dropped‐out 12%; 88%
Strategy A dynamic plan to gain, and sustain,
competitive advantage.
Hyper-competition technology and globalization have created this change
General environment general factors affects all sorts of different industries i.e. politics,
recession, social, economic, tech, etc.)
Origin of "strategy" Comes from the art of war, where the goal is to win, but that is not the
strategy.
Business strategy A plan to achieve competitive advantage that involves making four
strategic choices: (1) markets to compete in; (2) unique value the firm will offer in those
markets; (3) the resources and capabilities required to offer that unique value better than
competitors; and (4) ways to sustain the advantage by preventing imitation.
Competitive Advantage When a firm generates higher profits compared to its competitors.
unique value The reason a firm wins with customers or the value proposition it offers to
customers, such as a low cost advantage or differentiation advantage.
, The goal of the strategic plan is to create _________ ____________ . competitive
advantage.
To see which firms in an industry are most successful, we typically compare their_______ __
_________ return on assets (ROA)
A firm has a competitive advantage when it can consistently generate ________-_________
________ through a strategy that competitors are unable to imitate or find too costly to
imitate. above-average profits
Above-average profits Returns in excess of what an investor expects from other investments
with a similar amount of risk.
The central task of the strategy formulation process is specifying the high-level plan and set of
actions the company will take in its quest to achieve competitive advantage True
Two generic strategies to offer unique value Cost Advantage and Differentiation strategy
Cost advantage An advantage that a firm has over its competitors in the activities associated
with producing a product or service, thereby allowing it to produce the same product at lower
cost.
i.e. Walmart, Ryanair, Taco Bell, and Kia
Key sources of cost advantage economies of scale, lower-cost inputs, or proprietary
production know-how.
Differentiation strategy 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.
