BUS3-189 Final Exam (Questions with correct answers)

business level strategy correct answers way a company positions itself in the marketplace to gain a competitive advantage v = p = c = correct answers value (to consumer), price, cost (of production) v-p = p-c = v-c = correct answers consumer surplus, profit margin, value created lowering costs enable a company to: correct answers gain a competitive advantage, undercut rivals on price, gain market share example of lowering costs - gaining competitive advantage correct answers uber is able to lower costs compared to their competitors like Lyft, bc they have a competitive advantage in the US differentiation correct answers distinguishing oneself from rivals, allows companies to charge premium price, helps grow overall demand and capture market share from rivals ryanair business model correct answers cheap advertising, online ticket booking, not all seats are cheap, rent small/remote airports, reduce costs at checking-in, buy airplanes at right timings, put advertisements on planes, no free food or drink, efficient turn around time, low-cost customer service, ancillary revenue ancillary revenue correct answers revenue that is derived from goods or services other than a company's primary product offering Patagonias business model correct answers industrial design (functional purposes, good quality, healthy for environment), anti-consumerism and anti-consumption (want products to last longer, aimed at reducing overall consumption of the clothing industry), humane treatment of animals and the environment, care for the nature Yvon Chouinard leadership qualities: correct answers passion/empathy, curiosity (find problems, solve problems, keep asking questions), authenticity, simplistic approach to life, social responsibility fragmented industry correct answers composed of a large number of small and medium sized companies chaining correct answers Obtaining the advantages of cost leadership by establishing a network of linked merchandising outlets