Business Strategy UPDATED ACTUAL
Questions and CORRECT Answers
Strategy - CORRECT ANSWER✔✔- A Company's plan to gain, sustain, a competitive
advantage in the marketplace
Competitive Advantage - CORRECT ANSWER✔✔- when the strategy can consistently
generate above average profits
4 Key strategic Choices - CORRECT ANSWER✔✔- 1-Markets to Pursue
2-Unique value to offer
3-Resources and Capabilities to Develop
4- Sustaining Advantage
Corporate Level - CORRECT ANSWER✔✔- Where to Compete
Business Level - CORRECT ANSWER✔✔- How to Compete
Functional Level - CORRECT ANSWER✔✔- How to Implement
SWOT - CORRECT ANSWER✔✔-
Deliberate Strategy - CORRECT ANSWER✔✔- Result of careful analysis of markets,
customers, competitors and firm's resources and capabilities
Emergent Strategy - CORRECT ANSWER✔✔- Not expressly intended in the original
planning of strategy
Strategy Formation - CORRECT ANSWER✔✔- -Provide unique value to a set of customers
in appropriate markets
-develop a set of resources and capabilities that allow the company to deliver that unique
value to customers better than competitors
, -sustain competitive advantage by figuring out how to prevent imitation of the chosen
strategy
Strategy implementation - CORRECT ANSWER✔✔- -Functional strategies such as R&D,
ops, sales and marketing, HCM and delivering unique value
-Organizations structure, systems, staff, skills, style and shared value. McKinsey 7s
Framework
Intensity of Rivalry - CORRECT ANSWER✔✔- -Number and size of competitors
-standardization and perishability of products
-costs to buyers of switching to another product
-growth in demand for products
-levels of unused production capacity
-difficulty for firms of leaving the industry
Buyer Power - CORRECT ANSWER✔✔- if customers or buyers can easily switch, then
suppliers have increased power
supplier power - CORRECT ANSWER✔✔- if firms can't switch suppliers easily, then
suppliers have increased power
New Entrants - CORRECT ANSWER✔✔- If buyers can easily switch to new companies
attempting to enter the industry there is a greater threat of new entrants
Substitutes - CORRECT ANSWER✔✔- if buyers can switch to substitute products without
much difficulty firms face an increased threat from those substitutes
Economies of Scale - CORRECT ANSWER✔✔- Cost per unit decreases as a firm produces
more
Economies of Scope - CORRECT ANSWER✔✔- Less expensive costs per unit created by
bundling different types of products
Questions and CORRECT Answers
Strategy - CORRECT ANSWER✔✔- A Company's plan to gain, sustain, a competitive
advantage in the marketplace
Competitive Advantage - CORRECT ANSWER✔✔- when the strategy can consistently
generate above average profits
4 Key strategic Choices - CORRECT ANSWER✔✔- 1-Markets to Pursue
2-Unique value to offer
3-Resources and Capabilities to Develop
4- Sustaining Advantage
Corporate Level - CORRECT ANSWER✔✔- Where to Compete
Business Level - CORRECT ANSWER✔✔- How to Compete
Functional Level - CORRECT ANSWER✔✔- How to Implement
SWOT - CORRECT ANSWER✔✔-
Deliberate Strategy - CORRECT ANSWER✔✔- Result of careful analysis of markets,
customers, competitors and firm's resources and capabilities
Emergent Strategy - CORRECT ANSWER✔✔- Not expressly intended in the original
planning of strategy
Strategy Formation - CORRECT ANSWER✔✔- -Provide unique value to a set of customers
in appropriate markets
-develop a set of resources and capabilities that allow the company to deliver that unique
value to customers better than competitors
, -sustain competitive advantage by figuring out how to prevent imitation of the chosen
strategy
Strategy implementation - CORRECT ANSWER✔✔- -Functional strategies such as R&D,
ops, sales and marketing, HCM and delivering unique value
-Organizations structure, systems, staff, skills, style and shared value. McKinsey 7s
Framework
Intensity of Rivalry - CORRECT ANSWER✔✔- -Number and size of competitors
-standardization and perishability of products
-costs to buyers of switching to another product
-growth in demand for products
-levels of unused production capacity
-difficulty for firms of leaving the industry
Buyer Power - CORRECT ANSWER✔✔- if customers or buyers can easily switch, then
suppliers have increased power
supplier power - CORRECT ANSWER✔✔- if firms can't switch suppliers easily, then
suppliers have increased power
New Entrants - CORRECT ANSWER✔✔- If buyers can easily switch to new companies
attempting to enter the industry there is a greater threat of new entrants
Substitutes - CORRECT ANSWER✔✔- if buyers can switch to substitute products without
much difficulty firms face an increased threat from those substitutes
Economies of Scale - CORRECT ANSWER✔✔- Cost per unit decreases as a firm produces
more
Economies of Scope - CORRECT ANSWER✔✔- Less expensive costs per unit created by
bundling different types of products
