Business Strategy Game Exam Study Questions and Expert Solutions

Strategy the set of actions that managers take to outperform competitors and achieve competitive advantage strategic management the analysis, decisions and actions (ADA) an organization undertakes in order to create and sustain competitive advantage competitive advantage a firms ability to create value in a way that rivals cannot sustainable competitive advantage elements of the strategy that gives buyers lasting reasons to prefer a company's products or services over those of competitors operational effectiveness performing similar activities better than rivals deliberate strategy proactive strategy elements that are both planned and realized as planned emergent strategy reactive strategy elects that emerge as changing conditions warrant business model managements blueprint for delivering a valuable product or service to customers in a manner that will generate revenue sufficient to cover costs and yield an attractive profit two elements of company's business model 1) customer value proposition 2) profit formula Customer value proposition V-P (Customer value) - (product price) Profit Formula P-C (product price) - (per-unit cost) winning strategy 1) fit test 2) the competitive advantage test 3) the performance test the fit test "how well does the strategy fit the company's situation?" Must exhibit good internal and external fit