Strategy can be best described as the goal directed actions to gain and sustain
| | | | | | | | | | | | |
___?
|
- high performance in advancing industry capabilities
| | | | | |
- superior performance in the markets in which the firm operates
| | | | | | | | | |
- long term financial profits and economic viability
| | | | | | |
- operational improvements and product advancements
| | | | |
- the earth's environment and the well-being of the communities in which the
| | | | | | | | | | | |
|firm operates - correct answer ✔superior performance in the markets in which
| | | | | | | | | | |
|the firm operates
| |
According to Michael Porter the essence of strategy is ______.
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- leveraging operational and marketing effectiveness to create competitive
| | | | | | | |
|advantage
- choosing what not to do
| | | | | |
- maximizing ROI while driving cost of capital down
| | | | | | | | |
- copying what works from competitors and avoiding what doesn't work
| | | | | | | | | |
- aligning the external market environment with the firm's business model -
| | | | | | | | | | |
|correct answer ✔choosing what not to do
| | | | | |
,True/False: A criticism of the Traditional Top-Down approach to strategic
| | | | | | | | |
planning is that management assesses the external environment in terms of fit
| | | | | | | | | | | |
to the firm's current capabilities rather than thinking more "outside the box"
| | | | | | | | | | | |
when formulating future strategies. - correct answer ✔True
| | | | | | | |
Consider both statements. | | |
- Statement 1: Competitive advantage is always judged relative to other
| | | | | | | | | |
|competitors in the same industry or judged relative to industry average.
| | | | | | | | | | |
- Statement 2: Regardless of cost, a differentiation strategy will always result in
| | | | | | | | | | | |
|a competitive advantage if the firm can charge a premium price for its
| | | | | | | | | | | |
|products. - correct answer ✔Only statement 1 is True
| | | | | | | |
All of the following below are drivers that can create a differentiation
| | | | | | | | | | |
advantage and a greater willingness to pay except one. Select the one that
| | | | | | | | | | | | |
does not belong on the list:
| | | | | |
- brand
|
- existence of complements
| | | |
- economies of scale
| | |
- customer experience
| |
- product features
| |
- product performance - correct answer ✔economies of scale
| | | | | | | |
Which Statement below is true?
| | | |
- Cost leadership is the most common generic strategy for firms focused on
| | | | | | | | | | | |
|niche markets |
, - A firm is said to have a sustainable competitive advantage if it can
| | | | | | | | | | | | |
|consistently earn a profit every kayear for a prolonged period of time
| | | | | | | | | | |
- To obtain a competitive advantage a firm must either create more value for
| | | | | | | | | | | | |
|customers while keeping its costs comparable to competitors, or it must
| | | | | | | | | |
|provide value equivalent to competitors but at a lower cost.
| | | | | | | | |
- A firm that is charging the lowest price relative to its competitors will always
| | | | | | | | | | | | | |
|be pursuing a cost leadership strategy
| | | | |
- Bogus question: All of the above statements are true statements - correct
| | | | | | | | | | | |
|answer ✔To obtain a competitive advantage a firm must either create more
| | | | | | | | | | |
|value for customers while keeping its costs comparable to competitors, or it
| | | | | | | | | | |
|must provide value equivalent to competitors but at a lower cost.
| | | | | | | | | |
Which statement best describes how Orange, a PC maker, delivers value? Note:
| | | | | | | | | | |
consider our discussion on Business Models when answering this question.
| | | | | | | | | | |
- Orange's core competencies are its software development team and its
| | | | | | | | | |
|connections to microchip manufacturers in China and India. It is able to use its
| | | | | | | | | | | | |
|rich capabilities of software and data, and partner with low-cost manufacturers
| | | | | | | | | |
|to compete against its competitors.
| | | |
- Orange has great finances and strong backing by its parent company. It has
| | | | | | | | | | | | |
|low expenses due to its outsourcing and hiring part time contractors. Most
| | | | | | | | | | |
|costs are variable, not fixed. Orange generates revenue using the "retail"
| | | | | | | | | |
|model. |
- Orange partners with firms like Amazon and Egghead to sell its products
| | | | | | | | | | | |
|rather than using their own in-house capabilities.
| | | | | |
| | | | | | | | | | | | |
___?
|
- high performance in advancing industry capabilities
| | | | | |
- superior performance in the markets in which the firm operates
| | | | | | | | | |
- long term financial profits and economic viability
| | | | | | |
- operational improvements and product advancements
| | | | |
- the earth's environment and the well-being of the communities in which the
| | | | | | | | | | | |
|firm operates - correct answer ✔superior performance in the markets in which
| | | | | | | | | | |
|the firm operates
| |
According to Michael Porter the essence of strategy is ______.
| | | | | | | | | |
- leveraging operational and marketing effectiveness to create competitive
| | | | | | | |
|advantage
- choosing what not to do
| | | | | |
- maximizing ROI while driving cost of capital down
| | | | | | | | |
- copying what works from competitors and avoiding what doesn't work
| | | | | | | | | |
- aligning the external market environment with the firm's business model -
| | | | | | | | | | |
|correct answer ✔choosing what not to do
| | | | | |
,True/False: A criticism of the Traditional Top-Down approach to strategic
| | | | | | | | |
planning is that management assesses the external environment in terms of fit
| | | | | | | | | | | |
to the firm's current capabilities rather than thinking more "outside the box"
| | | | | | | | | | | |
when formulating future strategies. - correct answer ✔True
| | | | | | | |
Consider both statements. | | |
- Statement 1: Competitive advantage is always judged relative to other
| | | | | | | | | |
|competitors in the same industry or judged relative to industry average.
| | | | | | | | | | |
- Statement 2: Regardless of cost, a differentiation strategy will always result in
| | | | | | | | | | | |
|a competitive advantage if the firm can charge a premium price for its
| | | | | | | | | | | |
|products. - correct answer ✔Only statement 1 is True
| | | | | | | |
All of the following below are drivers that can create a differentiation
| | | | | | | | | | |
advantage and a greater willingness to pay except one. Select the one that
| | | | | | | | | | | | |
does not belong on the list:
| | | | | |
- brand
|
- existence of complements
| | | |
- economies of scale
| | |
- customer experience
| |
- product features
| |
- product performance - correct answer ✔economies of scale
| | | | | | | |
Which Statement below is true?
| | | |
- Cost leadership is the most common generic strategy for firms focused on
| | | | | | | | | | | |
|niche markets |
, - A firm is said to have a sustainable competitive advantage if it can
| | | | | | | | | | | | |
|consistently earn a profit every kayear for a prolonged period of time
| | | | | | | | | | |
- To obtain a competitive advantage a firm must either create more value for
| | | | | | | | | | | | |
|customers while keeping its costs comparable to competitors, or it must
| | | | | | | | | |
|provide value equivalent to competitors but at a lower cost.
| | | | | | | | |
- A firm that is charging the lowest price relative to its competitors will always
| | | | | | | | | | | | | |
|be pursuing a cost leadership strategy
| | | | |
- Bogus question: All of the above statements are true statements - correct
| | | | | | | | | | | |
|answer ✔To obtain a competitive advantage a firm must either create more
| | | | | | | | | | |
|value for customers while keeping its costs comparable to competitors, or it
| | | | | | | | | | |
|must provide value equivalent to competitors but at a lower cost.
| | | | | | | | | |
Which statement best describes how Orange, a PC maker, delivers value? Note:
| | | | | | | | | | |
consider our discussion on Business Models when answering this question.
| | | | | | | | | | |
- Orange's core competencies are its software development team and its
| | | | | | | | | |
|connections to microchip manufacturers in China and India. It is able to use its
| | | | | | | | | | | | |
|rich capabilities of software and data, and partner with low-cost manufacturers
| | | | | | | | | |
|to compete against its competitors.
| | | |
- Orange has great finances and strong backing by its parent company. It has
| | | | | | | | | | | | |
|low expenses due to its outsourcing and hiring part time contractors. Most
| | | | | | | | | | |
|costs are variable, not fixed. Orange generates revenue using the "retail"
| | | | | | | | | |
|model. |
- Orange partners with firms like Amazon and Egghead to sell its products
| | | | | | | | | | | |
|rather than using their own in-house capabilities.
| | | | | |
