BSM600 Questions and Correct Answers | Latest Update | A+

3 aspects that go into Successful strategy, and what kind of implementation. Ans: 1. Simple consistent long-term goals 2. Profound understanding of the competitive environment 3. Objective appraisal of resources What focus gets "rate of return above cost of capital" to Corporate Strategy? Ans: Industry Attractiveness: Which industries should we be in? What focus gets "rate of return above cost of capital" to Business Strategy? Ans: Competitive Advantage: How should we compete? Porter's 5 Forces Ans: 1. Supplier Power 2. Threat of new entrants 3. Buyer power 4. Industry rivalry 5. Substitution of product/services Supplier Power Ans: Factors determining power of suppliers relative to producers; same as those determining power producers relative to buyers Threat of Entry Ans: - Capital requirements - Economies of scale - Absolute cost advantages - Product differentiation