GEB 4890 EXAM 2 ACTUAL 2026 QUESTIONS
SOLUTIONS GRADED A+
◉ what makes a competitive advantage sustainable:. Answer: are
elements of the strategy that give buyers lasting reasons to prefer a
company's products or services over those of competitors--reasons
that the competitors are unable to nullify or overcome despite their
best efforts.
◉ most basic 5 approaches for setting a company apart from rivals
and winning a sustainable competitive advantage. Answer: 1-low-
cost provider strategy, 2-broad differentiation strategy, 3-focused
low-cost strategy 4-focused differentiation strategy, 5-best-cost
provider strategy
◉ company's strategy tends to evolve. Answer: because of changing
circumstances and ongoing efforts by management to improve the
strategy.
◉ why should a company have a viable business model that outlines
the company's customer value proposition and its profit formula?.
Answer: A company's business model sets forth the logic for how its
strategy will create value for customers and at the same time
generate revenues sufficient to cover costs and realize a profit. Thus,
it contains 2 crucial elements, (1) the customer value proposition, &
,(2) the profit formula. These elements are illustrated by the value-
price-cost framework.
◉ A winning strategy must pass three tests:. Answer: (1) fit
(external, internal, and dynamic consistency), (2) competitive
advantage ( durable competitive advantage), and (3) performance
(outstanding financial and market performance).
◉ low-cost provider strategy. Answer: achieving a cost-based
advantage over rivals.
◉ broad differentiation strategy. Answer: seeking to differentiate the
company's product or service from that of rivals in ways that will
appeal to a broad spectrum of buyers.
◉ focused low-cost strategy. Answer: concentrating on a narrow
buyer segment and outcompeting rivals by having lower costs and
thus being able to serve niche members at a lower price.
◉ focused differentiation strategy. Answer: concentrating on a
narrow buyer segment (or market niche) and outcompeting rivals by
offering buyers customized attributes that meet their specialized
needs and tastes better than rivals' products.
,◉ best-cost provider strategy. Answer: giving customers more value
for the money by satisfying their expectations on key quality
features, performance, and/or service attributes while beating their
price expectations. Blends low-cost provider and differentiation
strategies; the aim is to have lower costs than rivals while
simultaneously offering better differentiating attributes.
◉ crafting a good strategy covers both S-T and L-T, achieving this
entails making a managerial commitment to a coherent array of
well-considered choices about how to compete: These include:.
Answer: -How to position the company in the market place. '-How to
attract customers. '-How to compete against rivals. '-How to achieve
the company's performance targets. '-How to capitalize on
opportunities to grow the business. '-How to respond to changing
economic and market conditions.
◉ A strategy stands a better chance of succeeding when it is
predicated on actions, business approaches, and competitive moves
aimed at:. Answer: (1) appealing to buyers in ways that set a
company apart from its rivals and (2) staking out a market position
that is not crowded with strong competitors.
◉ A company achieves a __________ when it provides buyers with
superior value compared to rival sellers or offers the same value at a
lower cost to the firm.. Answer: competitive advantage
, ◉ The advantage is _________ if it persists despite the best efforts of
competitors to match or surpass this advantage.. Answer:
sustainable
◉ Changing circumstances and ongoing management efforts to
improve the strategy cause a company's strategy to :. Answer: evolve
over time--a condition that makes the task of crafting strategy a
work in progress, not a one-time event.
◉ A company's strategy is shaped partly by:. Answer: management
analysis and choice and partly by the necessity of adapting and
learning by doing.
◉ The evolving nature of a company's strategy means that the
typical company strategy is a blend of. Answer: (1) proactive and (2)
reactive
◉ Proactive. Answer: planned initiatives to improve the company's
financial performance and secure a competitive edge
◉ reactive. Answer: responses to unanticipated developments and
fresh market conditions.
◉ A deliberate strategy. Answer: consists of proactive strategy
elements that are both planned and realized as planned (while other
SOLUTIONS GRADED A+
◉ what makes a competitive advantage sustainable:. Answer: are
elements of the strategy that give buyers lasting reasons to prefer a
company's products or services over those of competitors--reasons
that the competitors are unable to nullify or overcome despite their
best efforts.
◉ most basic 5 approaches for setting a company apart from rivals
and winning a sustainable competitive advantage. Answer: 1-low-
cost provider strategy, 2-broad differentiation strategy, 3-focused
low-cost strategy 4-focused differentiation strategy, 5-best-cost
provider strategy
◉ company's strategy tends to evolve. Answer: because of changing
circumstances and ongoing efforts by management to improve the
strategy.
◉ why should a company have a viable business model that outlines
the company's customer value proposition and its profit formula?.
Answer: A company's business model sets forth the logic for how its
strategy will create value for customers and at the same time
generate revenues sufficient to cover costs and realize a profit. Thus,
it contains 2 crucial elements, (1) the customer value proposition, &
,(2) the profit formula. These elements are illustrated by the value-
price-cost framework.
◉ A winning strategy must pass three tests:. Answer: (1) fit
(external, internal, and dynamic consistency), (2) competitive
advantage ( durable competitive advantage), and (3) performance
(outstanding financial and market performance).
◉ low-cost provider strategy. Answer: achieving a cost-based
advantage over rivals.
◉ broad differentiation strategy. Answer: seeking to differentiate the
company's product or service from that of rivals in ways that will
appeal to a broad spectrum of buyers.
◉ focused low-cost strategy. Answer: concentrating on a narrow
buyer segment and outcompeting rivals by having lower costs and
thus being able to serve niche members at a lower price.
◉ focused differentiation strategy. Answer: concentrating on a
narrow buyer segment (or market niche) and outcompeting rivals by
offering buyers customized attributes that meet their specialized
needs and tastes better than rivals' products.
,◉ best-cost provider strategy. Answer: giving customers more value
for the money by satisfying their expectations on key quality
features, performance, and/or service attributes while beating their
price expectations. Blends low-cost provider and differentiation
strategies; the aim is to have lower costs than rivals while
simultaneously offering better differentiating attributes.
◉ crafting a good strategy covers both S-T and L-T, achieving this
entails making a managerial commitment to a coherent array of
well-considered choices about how to compete: These include:.
Answer: -How to position the company in the market place. '-How to
attract customers. '-How to compete against rivals. '-How to achieve
the company's performance targets. '-How to capitalize on
opportunities to grow the business. '-How to respond to changing
economic and market conditions.
◉ A strategy stands a better chance of succeeding when it is
predicated on actions, business approaches, and competitive moves
aimed at:. Answer: (1) appealing to buyers in ways that set a
company apart from its rivals and (2) staking out a market position
that is not crowded with strong competitors.
◉ A company achieves a __________ when it provides buyers with
superior value compared to rival sellers or offers the same value at a
lower cost to the firm.. Answer: competitive advantage
, ◉ The advantage is _________ if it persists despite the best efforts of
competitors to match or surpass this advantage.. Answer:
sustainable
◉ Changing circumstances and ongoing management efforts to
improve the strategy cause a company's strategy to :. Answer: evolve
over time--a condition that makes the task of crafting strategy a
work in progress, not a one-time event.
◉ A company's strategy is shaped partly by:. Answer: management
analysis and choice and partly by the necessity of adapting and
learning by doing.
◉ The evolving nature of a company's strategy means that the
typical company strategy is a blend of. Answer: (1) proactive and (2)
reactive
◉ Proactive. Answer: planned initiatives to improve the company's
financial performance and secure a competitive edge
◉ reactive. Answer: responses to unanticipated developments and
fresh market conditions.
◉ A deliberate strategy. Answer: consists of proactive strategy
elements that are both planned and realized as planned (while other
