BUSINESS STRATEGY EXAM 2 QUESTIONS
WITH 100% CORRECT ANSWERS!!
What is business strategy
building a sustainable competitive advantage, it has to do with value creation - How to compete
Corporate strategy
is about the growth of the firm - where to compete
business strategy
how to compete (market, industry specific competition)
3P
plan = timeline, people and action that you plan on taking to achieve the goal
pattern = consitstency of your actions and decisions over time (vision and values)
profit = what should be your actions to so you can capture value
good strategy requires
diagnosis = what is the problem, disecting it
guiding policy = an overall approach to the proble
set of coherent actions = clear set of action to take that support one another
porters five forces checks?
how far from perfect competition you are
porter's five forces elements
1) barriers to entry
2) substitutes
3) supplier's strength
4) buyer's bargaining power
5) competition
sixth porter's force
, complements - can you add something that increases the value provided
what are five forces' shortcomings
1) it is static
2) it ignores value creation
3) it can be too broad
how do you expand your understanding of industries to include value creation?
you look at the value chain
why does an industry changes?
because the basic rules of the industry change
factors that drive the industry dynamics
1) entry & exit of competition
2) knowledge creation and diffusion
3) demand changes
lifecycle stages
introduction, growth, maturity and decline
competitive advantage
long-term ability to create and capture value
3 defending positions
adaptation, market power and internal fit (= build an effective system that is highly connected
and hard to imitate)
adaptation defense
regeneration = you invest in the product
reconfigure = you change your business model to match the market
market power defense
WITH 100% CORRECT ANSWERS!!
What is business strategy
building a sustainable competitive advantage, it has to do with value creation - How to compete
Corporate strategy
is about the growth of the firm - where to compete
business strategy
how to compete (market, industry specific competition)
3P
plan = timeline, people and action that you plan on taking to achieve the goal
pattern = consitstency of your actions and decisions over time (vision and values)
profit = what should be your actions to so you can capture value
good strategy requires
diagnosis = what is the problem, disecting it
guiding policy = an overall approach to the proble
set of coherent actions = clear set of action to take that support one another
porters five forces checks?
how far from perfect competition you are
porter's five forces elements
1) barriers to entry
2) substitutes
3) supplier's strength
4) buyer's bargaining power
5) competition
sixth porter's force
, complements - can you add something that increases the value provided
what are five forces' shortcomings
1) it is static
2) it ignores value creation
3) it can be too broad
how do you expand your understanding of industries to include value creation?
you look at the value chain
why does an industry changes?
because the basic rules of the industry change
factors that drive the industry dynamics
1) entry & exit of competition
2) knowledge creation and diffusion
3) demand changes
lifecycle stages
introduction, growth, maturity and decline
competitive advantage
long-term ability to create and capture value
3 defending positions
adaptation, market power and internal fit (= build an effective system that is highly connected
and hard to imitate)
adaptation defense
regeneration = you invest in the product
reconfigure = you change your business model to match the market
market power defense
