BUSINESS STRATEGY EXAM 6 QUESTIONS
WITH 100% CORRECT ANSWERS!!
What is strategy?
The choice of a future for the company and of a way to reach that future, integrating decisions
and actions.
What are the three levels of strategy?
Corporate, Competitive, Functional.
What is 'Phase 2' in strategy?
The stage between having an idea and generating profit.
What is competitive advantage?
When a firm achieves a wider WTP-Cost wedge than rivals.
What are the two types of competitive advantage?
Cost Leadership and Differentiation.
What is strategic fit?
Alignment between internal resources/capabilities and the external environment.
What are Porter's Five Forces?
Rivalry, Threat of New Entrants, Supplier Power, Buyer Power, Threat of Substitutes.
What does strong force imply in Five Forces?
Lower industry profitability.
What is the purpose of industry analysis?
To assess industry attractiveness and profit potential.
What is Strategic Group Analysis (SGA)?
A tool to cluster firms by similar strategies to assess mobility barriers and competition.
WITH 100% CORRECT ANSWERS!!
What is strategy?
The choice of a future for the company and of a way to reach that future, integrating decisions
and actions.
What are the three levels of strategy?
Corporate, Competitive, Functional.
What is 'Phase 2' in strategy?
The stage between having an idea and generating profit.
What is competitive advantage?
When a firm achieves a wider WTP-Cost wedge than rivals.
What are the two types of competitive advantage?
Cost Leadership and Differentiation.
What is strategic fit?
Alignment between internal resources/capabilities and the external environment.
What are Porter's Five Forces?
Rivalry, Threat of New Entrants, Supplier Power, Buyer Power, Threat of Substitutes.
What does strong force imply in Five Forces?
Lower industry profitability.
What is the purpose of industry analysis?
To assess industry attractiveness and profit potential.
What is Strategic Group Analysis (SGA)?
A tool to cluster firms by similar strategies to assess mobility barriers and competition.
