GEB 4890 Exam 1 (CH 1,2,3,4,5&6) Graded A Q&A Complete

company strategy - Answer-the set of actions that its managers take to outperform the company's competitors and achieve superior profitability. 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 ed 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) reactiveProactive - 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 planned strategy elements may not work out and are abandoned in consequence). A company's _______ consists of proactive strategy elements that are planned - Answer-deliberate strategy A company's ________ consists of reactive strategy elements that emerge as changing conditions warrant. - Answer-emergent strategy A company's ________ can be observed in the pattern of its actions over time, which is a far better indicator than any of its strategic plans on paper or any public pronouncements about its strategy - Answer-realized strategy business model - Answer-is management's blueprint for delivering a valuable product or service to customers in a manner that will generate revenues sufficient to cover costs and yield an attractive profit. the two elements of a company's business model are: - Answer-(1) customer value proposition and (2) profit formula. Customer value proposition - Answer-lays out the company's approach to satisfying the buyer wants and needs at a price customers will consider a good value. profit formula - Answer-describes the company's approach to determining a cost structure that will allow for acceptable profits, given the pricing tied to its customer value proposition.The _________ reveals how efficiently a company can meet customer wants and needs and deliver on the value proposition. - Answer-profit formula A company's ________ 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. - Answer-business model