WPC 480 Final Exam

WPC 480 Final Exam What is strategy? - An integrated set of goal-directed actions a firm takes to gain and sustain competitive advantage. What are the 2 business analysis? - Internal and External. What are the 3 business strategies? - 1) Cost, 2) Differentiation, 3) Innovation. What is competitive advantage? - Superior performance relative to other competitors in the same industry or the industry average. How do you assess competitive advantage? - Compare firm performance to a benchmark. What is sustainable competitive advantage? - Outperforming competitors or the industry average over a prolonged period of time. What is competitive disadvantage? - Underperformance relative to other competitors in the same industry or the industry average. What is competitive parity? - A performance of two or more firms at the same level. What is the key to successful strategy and gain competitive advantages? - Combine activities for a unique position in an industry. Where does competitive advantage come from? - 1) Performing different activities, or 2) Performing the same activities differently than rivals. What does strategic positioning require? - Trade-offs. What is the fist step of a strategic goal to gain and sustain competitive advantage? - Define a firm's vision, mission, and values. What is a firm's vision? - What do we want to accomplish? What is a firm's mission? - How do we accomplish our goals? What is a firm's values? - What commitments do we make? What guardrails do we put in place? How can we act legally and ethically in pursuit of the vision and mission? What are the key aspects of an effective vision? - 1) Capture an organization's aspiration . 2) Identifies what it ultimately wants to accomplish. 3) Motivates employees to aim for a target. 4) Leaves room for contributions. What is a product-oriented vision statement? - Defines a business in terms of a good or service provided. What is a customer-oriented vision statement? - Defines a business in terms of providing solutions to customer needs. What things can a firm do to vision statements and firm performance to be positively associated? - 1) The vision is customer-oriented, 2) Internal stakeholders