GEB 4890 Exam 1 (CH 1,2,3,4,5&6) Questions and Correct Solutions 2024

GEB 4890 Exam 1 (CH 1,2,3,4,5&6) Questions and Correct Solutions 2024 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 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