BUSA 4980 EXAM 1 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Strategy
Answer:
an action plan (initiatives, commitments), involving resource allocation
an integrated and coordinated set of actions designed to exploit core
competencies and gain a competitive advantage
must consist of a central, integrated, externally-oriented concept of how the
business will achieve its objectives
5 elements: arena, vehicles, differentiators, staging and economic logic
Question:
2. Strategic Competitiveness
Answer:
involves formulating and implementing a value-creating strategy
a strategy is competitive when it creates value for consumers
often entails a unique market position
requires a core competence ie resources that are valuable, rare, costly to imitate
and non-substitutable
Question:
3. Competitive Advantage
Answer:
results when buyers have a lasting preference for the company's products or
services over rivals'
rivals are unable to duplicate or find too costly to imitate the value offered to
consumers
achieved through lower costs or differentiation (ie unique features)
Question:
4. Above-Average Returns
Answer:
returns in excess of what investor expects in comparison to other investments with
similar risk
main metric = performance (profitability, financial strength, and market standing)
other metrics = goodness to fit, competitive advantage, consistency and risk
, Question:
5. Major Elements of Strategy
Answer:
Arena, Vehicles, Differentiators, Staging, and Economic Logic
Question:
6. Strategy - Arenas
Answer:
Where will we be active?
product categories
market segments
geographic areas
core technologies
value creation stages
it is important to be as specific as possible
Question:
7. Strategy - Vehicles
Answer:
How will we get there?
internal development
joint ventures
licensing/ franchising
acquisitions
the means for attaining the needed presence in a particular product category,
market segment, geographic area, or value-creation stage should be the result of
deliberate strategic choice
Question:
8. Strategy - Differentitators
Answer:
How will we win?
price
image/ styling
customization
product reliability
sometimes having the best combination of differentiators confers a tremendous
marketplace advantage
AND CORRECT ANSWERS
Question:
1. Strategy
Answer:
an action plan (initiatives, commitments), involving resource allocation
an integrated and coordinated set of actions designed to exploit core
competencies and gain a competitive advantage
must consist of a central, integrated, externally-oriented concept of how the
business will achieve its objectives
5 elements: arena, vehicles, differentiators, staging and economic logic
Question:
2. Strategic Competitiveness
Answer:
involves formulating and implementing a value-creating strategy
a strategy is competitive when it creates value for consumers
often entails a unique market position
requires a core competence ie resources that are valuable, rare, costly to imitate
and non-substitutable
Question:
3. Competitive Advantage
Answer:
results when buyers have a lasting preference for the company's products or
services over rivals'
rivals are unable to duplicate or find too costly to imitate the value offered to
consumers
achieved through lower costs or differentiation (ie unique features)
Question:
4. Above-Average Returns
Answer:
returns in excess of what investor expects in comparison to other investments with
similar risk
main metric = performance (profitability, financial strength, and market standing)
other metrics = goodness to fit, competitive advantage, consistency and risk
, Question:
5. Major Elements of Strategy
Answer:
Arena, Vehicles, Differentiators, Staging, and Economic Logic
Question:
6. Strategy - Arenas
Answer:
Where will we be active?
product categories
market segments
geographic areas
core technologies
value creation stages
it is important to be as specific as possible
Question:
7. Strategy - Vehicles
Answer:
How will we get there?
internal development
joint ventures
licensing/ franchising
acquisitions
the means for attaining the needed presence in a particular product category,
market segment, geographic area, or value-creation stage should be the result of
deliberate strategic choice
Question:
8. Strategy - Differentitators
Answer:
How will we win?
price
image/ styling
customization
product reliability
sometimes having the best combination of differentiators confers a tremendous
marketplace advantage
