BSG-Chapter 1 Questions and
Complete Answers
The customer value proposition portion of a company's business model concerns - Answer: the
company's approach to satisfying buyer needs and requirements at a price they will consider a good
value
Crafting and executing strategy are top-priority managerial tasks because - Answer: how well a
company performs and the degree of market success it achieves are directly attributable to the
caliber of its strategy and the proficiency with which the strategy is executed
a company's strategy is a "work in progress" and evolves over time because of - Answer: the need to
react and respond to changing market and competitive conditions and ongoing management efforts
to improve this or that piece of the strategy
what makes a competitive advantage sustainable or durable as opposed to temporary - Answer: are
actions or elements in a company's strategy that cause an attractive number of buyers to have
lasting reasons to purchase they company's products or services, despite competitors best efforts to
nullify or overcome those reasons
the two crucial elements of a company's business model are - Answer: its customer value
proposition (which lays out the company's approach to satisfying buyer needs and requirements at a
price they will consider a good value) and its profit proposition or "profit formula" (its business
approach to generating sufficiently large revenues and controlling the costs of its customer value
proposition, such that the company will be able to simultaneously deliver the intended value to
customers and deliver appealing profits to shareholders)
the difference between a company's strategy and company's business model is that - Answer: its
strategy is defined by the specific market positioning, competitive movies, and business approaches
management employs to try to produce good business results while its business model relates to
management's blueprint for delivering a valuable product or service to customers in a manner that
will generate revenues sufficient to cover costs and yield an attractive profit
a winning strategy is one that - Answer: fits the company's internal and external situation, improves
company performance, and helps achieve sustainable competitive advantage
Complete Answers
The customer value proposition portion of a company's business model concerns - Answer: the
company's approach to satisfying buyer needs and requirements at a price they will consider a good
value
Crafting and executing strategy are top-priority managerial tasks because - Answer: how well a
company performs and the degree of market success it achieves are directly attributable to the
caliber of its strategy and the proficiency with which the strategy is executed
a company's strategy is a "work in progress" and evolves over time because of - Answer: the need to
react and respond to changing market and competitive conditions and ongoing management efforts
to improve this or that piece of the strategy
what makes a competitive advantage sustainable or durable as opposed to temporary - Answer: are
actions or elements in a company's strategy that cause an attractive number of buyers to have
lasting reasons to purchase they company's products or services, despite competitors best efforts to
nullify or overcome those reasons
the two crucial elements of a company's business model are - Answer: its customer value
proposition (which lays out the company's approach to satisfying buyer needs and requirements at a
price they will consider a good value) and its profit proposition or "profit formula" (its business
approach to generating sufficiently large revenues and controlling the costs of its customer value
proposition, such that the company will be able to simultaneously deliver the intended value to
customers and deliver appealing profits to shareholders)
the difference between a company's strategy and company's business model is that - Answer: its
strategy is defined by the specific market positioning, competitive movies, and business approaches
management employs to try to produce good business results while its business model relates to
management's blueprint for delivering a valuable product or service to customers in a manner that
will generate revenues sufficient to cover costs and yield an attractive profit
a winning strategy is one that - Answer: fits the company's internal and external situation, improves
company performance, and helps achieve sustainable competitive advantage
