MGT 8803 TEST EVALUATION ANSWERS AND
QUESTIONS SET A+
✔✔Business Strategy - ✔✔actions that a firm takes to achieve a goal, such as
maximizing profits
✔✔competitive advantage - ✔✔an advantage over competitors gained by offering
greater customer value, either by having lower prices or providing more benefits that
justify higher prices
✔✔Elements of a Good Business Strategy - ✔✔A diagnosis of the competitive
challenge.
A guiding policy to address the competitive challenge.
A set of coherent actions to implement the firm's guiding policy.
✔✔cost leadership strategy - ✔✔generic business strategy that seeks to create the
same or similar value for customers at a lower cost
✔✔differentiation strategy - ✔✔A strategy an organization uses to build competitive
advantage by being unique in its industry or market segment along one or more
dimensions.
✔✔focus strategy - ✔✔the positioning strategy of using cost leadership or differentiation
to produce a specialized product or service for a limited, specially targeted group of
customers in a particular geographic region or market segment
✔✔Vision Statement - ✔✔establishes the scope and purpose of a company and reflects
its values and beliefs
✔✔Mission Statement - ✔✔a short, specific written statement of the reason a business
exists and what it wants to achieve
✔✔Core Values - ✔✔the fundamental, passionate, and enduring principles of an
organization that guide its conduct over time
, ✔✔Business Model - ✔✔how firms and strategies fit together to make a profit
✔✔Business Model Framework - ✔✔- Value delivery
- Value creation
- Value capture
✔✔Common Revenue Models - ✔✔-retail
-transaction
-rental/lease
-usage
-advertising & sponsorships
-affiliate marketing -brokerage
-subscription/membership -licensing
✔✔Value Capture - ✔✔When a company creates value by acting in ways that its
competitors cannot or will not act.
✔✔Value Delivery - ✔✔Giving your customers what you've promised and ensuring that
they're satisfied; achieved through products, sales and distribution, markets
✔✔Value Creation - ✔✔Performing activities that increase the value of goods or
services to consumers; achieved through core competencies, capabilities and activities,
partners, and resources
✔✔Possible differentiation strategies - ✔✔- higher quality
- innovative design
- technological capability
- high costs inputs
- customer experience
- emphasis on R&D
- spending on marketing and/or customer service
✔✔AFI Framework - ✔✔A model that links three interdependent strategic management
tasks—analyze, formulate, and implement—that, together, help managers plan and
implement a strategy that can improve performance and result in competitive
advantage.
✔✔Residual uncertainty - ✔✔the level of risk that remains after individuals or
organizations implement their risk management plans
✔✔Levels of uncertainty - ✔✔1. clear enough future
2. alternative futures
3. range of futures
4. true uncertainty
QUESTIONS SET A+
✔✔Business Strategy - ✔✔actions that a firm takes to achieve a goal, such as
maximizing profits
✔✔competitive advantage - ✔✔an advantage over competitors gained by offering
greater customer value, either by having lower prices or providing more benefits that
justify higher prices
✔✔Elements of a Good Business Strategy - ✔✔A diagnosis of the competitive
challenge.
A guiding policy to address the competitive challenge.
A set of coherent actions to implement the firm's guiding policy.
✔✔cost leadership strategy - ✔✔generic business strategy that seeks to create the
same or similar value for customers at a lower cost
✔✔differentiation strategy - ✔✔A strategy an organization uses to build competitive
advantage by being unique in its industry or market segment along one or more
dimensions.
✔✔focus strategy - ✔✔the positioning strategy of using cost leadership or differentiation
to produce a specialized product or service for a limited, specially targeted group of
customers in a particular geographic region or market segment
✔✔Vision Statement - ✔✔establishes the scope and purpose of a company and reflects
its values and beliefs
✔✔Mission Statement - ✔✔a short, specific written statement of the reason a business
exists and what it wants to achieve
✔✔Core Values - ✔✔the fundamental, passionate, and enduring principles of an
organization that guide its conduct over time
, ✔✔Business Model - ✔✔how firms and strategies fit together to make a profit
✔✔Business Model Framework - ✔✔- Value delivery
- Value creation
- Value capture
✔✔Common Revenue Models - ✔✔-retail
-transaction
-rental/lease
-usage
-advertising & sponsorships
-affiliate marketing -brokerage
-subscription/membership -licensing
✔✔Value Capture - ✔✔When a company creates value by acting in ways that its
competitors cannot or will not act.
✔✔Value Delivery - ✔✔Giving your customers what you've promised and ensuring that
they're satisfied; achieved through products, sales and distribution, markets
✔✔Value Creation - ✔✔Performing activities that increase the value of goods or
services to consumers; achieved through core competencies, capabilities and activities,
partners, and resources
✔✔Possible differentiation strategies - ✔✔- higher quality
- innovative design
- technological capability
- high costs inputs
- customer experience
- emphasis on R&D
- spending on marketing and/or customer service
✔✔AFI Framework - ✔✔A model that links three interdependent strategic management
tasks—analyze, formulate, and implement—that, together, help managers plan and
implement a strategy that can improve performance and result in competitive
advantage.
✔✔Residual uncertainty - ✔✔the level of risk that remains after individuals or
organizations implement their risk management plans
✔✔Levels of uncertainty - ✔✔1. clear enough future
2. alternative futures
3. range of futures
4. true uncertainty
