Solution Manual
Business Strategy, Development, Application,
4th Canadian Edition by Gary Bissonette
All Chapters 1-14 Covered
, INSTRUCTOR’Sh MANUAL
Chapter 1: Understanding and Managing Today’s Business Enterprise
h h h h h h h h
ChapterhSummary
Inhthishchapter,hwehhavehdescribedhthehnaturehofhbusinesshandhdiscussedhthehwayshinhwhichhbusin
esseshstrivehtohmaintainhtheirhviabilityhandhrelevancyhthroughhinteractinghwithhthehmarketplacehinh
wayshthathmeeththehneeds,hwants,handhdesireshofhtargetedhcustomers.hOurhdiscussionhfocusedhon
hthehinteractionhofhbusinesshashahcommercialhendeavour,hguidedhbyhemployeehinteractionhandhsup
portedhbyhorganizationalhefficiencyhandhstructure.hThishprocesshresultshinhthehdevelopmenthofhahbu
sinesshsystemhandhultimatelyhahbusinesshmodel,hwhichhtogetherharehdesignedhtohdeliverhdesiredhg
oodshandhserviceshtohthehmarketplace.hUtilizinghproductivehresourceshaththeirhdisposalh(assets,hla
bour,hcapital,handhmanagerialhacumen),hbusinesseshseekhtohcreatehdemand,hgeneratehrevenue,han
dhdrivehahprofithfromhthehsalehofhsuchhgoodshandhservices,htherebyhensuringhtheirhlong-
termhprofitabilityhandhgrowth.hWhilehstrivinghforhprofitability,hbusinessesharehbeinghincreasinglyhch
allengedhbyhcustomers,handhthehmarketplacehathlarge,htohbehgoodhcorporatehcitizens,hacknowledgi
nghtheirhresponsibilityhtohacthinhahsociallyhacceptablehmannerhandhrespectinghthehfinitehnaturehandh
scarcityhofhresources.hThishevolvinghrequirementhofhbusinesseshishresultinghinhahsignificanthempha
sishonhresourcehsustainabilityhandhenvironmentalhinitiatives.
Tohhelphyouhtohunderstandhwhyhsomehcompaniesharehmorehsuccessfulhthanhothers,hthishchapter’sh
focushemphasizesh(athahmacrohlevel)hthehimportancehofhpositioning,handhdevelopinghandhcommuni
catinghahvaluehpropositionhtohthehcustomerhgrouphthathahbusinesshishtryinghtohattract,hinhahmannerht
hathdifferentiateshthehbusiness’shproductshandhserviceshfromhthosehofhitshdirecthcompetitorshandht
hathattemptshtohdevelophandhsustainhahcompetitivehadvantagehinhthehmarketplace.hThehcreationhofh
thishvaluehpropositionhtakeshintohconsiderationhbothhtangiblehandhintangiblehbenefitshthaththehprod
ucthorhservicehoffers,handhlookshtohdeterminehthehextenthathwhichhpricehwillhbecomehahkeyhdecision
hcriterionhwithinhthehcustomer’shpurchasehdecision. hThehchapterhcloseshwithhahdiscussionhassociat
edhwithhthehimportancehandhinterrelationshiphbetweenhstrategyhandhtacticsh andhthehneedhforhman
agershtohrecognizehthathinhorderhtohbehsuccessful,hbusinesseshnothonlyhhavehtohproperlyhdevelophah
planhforhservinghthehmarketplace,hbuthalsohmusthbeheffectivehinhthehimplementationhofhthishplan.
LearninghObjectives
Thishchapterhishdesignedhtohprovidehstudentshwith:
1. Ahmacro-levelhunderstandinghofhwhathbusinesshis
2. Anhoverviewhofhthehmajorhcomponentshofhahbusinesshmodelhandhhowhtheirhsuccessful
1-1
, INSTRUCTOR’Sh MANUAL
developmenthandhexecutionhdetermineshbusinesshperformance
3. Anhawarenesshofhthehoverarchinghrolehofhthehbusinesshownerhorh“C-
suite”hmanagementhteam
4. Anhunderstandinghofhhowhbusinesseshplan
5. Exposurehtohthehconcepthofhvisionaryhleadership
6. ViahahManagementhReflection,hanhoverviewhofhthehrelationshiphbetweenhbusinesshstrategyh
andhbusinesshmodelhdevelopment,handhthehimportancehofhsuccessfullyhexecutinghbothhforh
ahbusinesshtohachievehitshidentifiedhobjectives
AdvancedhTopicshtohEnhancehLearningh–hApplicablehSupportinghAppendices
Thehfollowinghadditionalhappendiceshcanhbehaddedhtohthehdeliveryhofhthishchapter’shmaterialshforhinstruct
orshinterestedhinhofferinghanhadvancehunderstandinghofhahparticularhsubjecthmatter.
AppendixhAh–hAnalyzinghBusinesshSituationsh(SCQAhMethod)
AppendixhBh–hThehBusinesshModelhandhProfitability
ManagementhReflectionh–hThehBusinesshDecision-MakinghLandscape
Beinghinhbusinesshgoeshbeyondhsimplyhdevelopinghyourhvaluehpropositionhandhunderstandinghitshas
sethbasehandhcosthstructure.hIthishabouthbeinghablehtohunderstandhthehmacrohenvironmentharoundhy
ou;hthehresources,hcapability,handhcapacityhthathyouhpossess;handhthehabilityhtohcommunicatehtoht
hehmarketplacehthehuniquenesshandhimportancehofhthehproducts/serviceshyouhoffer.hAthitshcorehba
se,hdevelopinghandhmanaginghahbusinesshrequireshitshowners/managershto:
• createhahvisionhofhthehopportunityhinhthehmarketplace
• confirmhthaththehmarkethsizehofhcustomershishlargehenoughhthat,honcehcommercialized,hth
ehopportunityhcanhenablehthehorganizationhtohmakehahprofithandhsustainhthishprofitabilityhfo
rhthehanticipatedhplanninghcyclehandhbeyond
• confirmhthathahpositionhwithinhthehmarkethishfeasible,hwhichhwillhenablehthehcompanyhtoh
competehinhahmannerhthathishsuperiorhtohitshdirecthcompetition
• confirmhthaththehmarkethsituationhwillhstayhconstanthlonghenoughhforhthehbusinesshplanhto
hbehdevelopedhandhexecutedhconfirmhthaththehbusinesshhashthehresourcehbasehandhthehc
apabilityhtohexecutehthehstrategy
• executehthehstrategyhinhanhefficienthandheffectivehmanner,hachievinghthehobjectiveshset
hforthhwithinhthehbusinesshplanhcreated
Ashthishprocesshdemonstratesh(seehFigureh1.12),hbeinghinhbusinesshishreallyhahquestionhofhdevelo
pinghstrategyhandhexecutinghtacticshacrosshyourhbusinesshmodel.hStrategyhishthehdevelopmenthofh
planshandhdecisionshthathwillhguidehthehdirectionhofhthehfirmhandhdeterminehitshlong-
termhperformance.hStrategyhfocuseshonhthehvisionhofhthehfirmhandhthehopportunityhithbelieveshexist
shinhthehmarketplace.hIthalsohcheckshthaththehlifehexpectancyhofhthehproducthorhservicehishlongheno
ughhtohensurehthaththehinitialhinvestmenthcanhbehrecoveredhandhthaththehfirmhcanhmakehahprofit.hFin
ally,hstrategyhdevelopmenthassesseshwhetherhthehfirmhhashthehcompetencieshandhresourceshtohc
1-2
, INSTRUCTOR’Sh MANUAL
ompetehinhthishtargetedhmarket.hTacticsharehthehimmediate-termhactionshthathahfirmhexecuteshto
1-3
Business Strategy, Development, Application,
4th Canadian Edition by Gary Bissonette
All Chapters 1-14 Covered
, INSTRUCTOR’Sh MANUAL
Chapter 1: Understanding and Managing Today’s Business Enterprise
h h h h h h h h
ChapterhSummary
Inhthishchapter,hwehhavehdescribedhthehnaturehofhbusinesshandhdiscussedhthehwayshinhwhichhbusin
esseshstrivehtohmaintainhtheirhviabilityhandhrelevancyhthroughhinteractinghwithhthehmarketplacehinh
wayshthathmeeththehneeds,hwants,handhdesireshofhtargetedhcustomers.hOurhdiscussionhfocusedhon
hthehinteractionhofhbusinesshashahcommercialhendeavour,hguidedhbyhemployeehinteractionhandhsup
portedhbyhorganizationalhefficiencyhandhstructure.hThishprocesshresultshinhthehdevelopmenthofhahbu
sinesshsystemhandhultimatelyhahbusinesshmodel,hwhichhtogetherharehdesignedhtohdeliverhdesiredhg
oodshandhserviceshtohthehmarketplace.hUtilizinghproductivehresourceshaththeirhdisposalh(assets,hla
bour,hcapital,handhmanagerialhacumen),hbusinesseshseekhtohcreatehdemand,hgeneratehrevenue,han
dhdrivehahprofithfromhthehsalehofhsuchhgoodshandhservices,htherebyhensuringhtheirhlong-
termhprofitabilityhandhgrowth.hWhilehstrivinghforhprofitability,hbusinessesharehbeinghincreasinglyhch
allengedhbyhcustomers,handhthehmarketplacehathlarge,htohbehgoodhcorporatehcitizens,hacknowledgi
nghtheirhresponsibilityhtohacthinhahsociallyhacceptablehmannerhandhrespectinghthehfinitehnaturehandh
scarcityhofhresources.hThishevolvinghrequirementhofhbusinesseshishresultinghinhahsignificanthempha
sishonhresourcehsustainabilityhandhenvironmentalhinitiatives.
Tohhelphyouhtohunderstandhwhyhsomehcompaniesharehmorehsuccessfulhthanhothers,hthishchapter’sh
focushemphasizesh(athahmacrohlevel)hthehimportancehofhpositioning,handhdevelopinghandhcommuni
catinghahvaluehpropositionhtohthehcustomerhgrouphthathahbusinesshishtryinghtohattract,hinhahmannerht
hathdifferentiateshthehbusiness’shproductshandhserviceshfromhthosehofhitshdirecthcompetitorshandht
hathattemptshtohdevelophandhsustainhahcompetitivehadvantagehinhthehmarketplace.hThehcreationhofh
thishvaluehpropositionhtakeshintohconsiderationhbothhtangiblehandhintangiblehbenefitshthaththehprod
ucthorhservicehoffers,handhlookshtohdeterminehthehextenthathwhichhpricehwillhbecomehahkeyhdecision
hcriterionhwithinhthehcustomer’shpurchasehdecision. hThehchapterhcloseshwithhahdiscussionhassociat
edhwithhthehimportancehandhinterrelationshiphbetweenhstrategyhandhtacticsh andhthehneedhforhman
agershtohrecognizehthathinhorderhtohbehsuccessful,hbusinesseshnothonlyhhavehtohproperlyhdevelophah
planhforhservinghthehmarketplace,hbuthalsohmusthbeheffectivehinhthehimplementationhofhthishplan.
LearninghObjectives
Thishchapterhishdesignedhtohprovidehstudentshwith:
1. Ahmacro-levelhunderstandinghofhwhathbusinesshis
2. Anhoverviewhofhthehmajorhcomponentshofhahbusinesshmodelhandhhowhtheirhsuccessful
1-1
, INSTRUCTOR’Sh MANUAL
developmenthandhexecutionhdetermineshbusinesshperformance
3. Anhawarenesshofhthehoverarchinghrolehofhthehbusinesshownerhorh“C-
suite”hmanagementhteam
4. Anhunderstandinghofhhowhbusinesseshplan
5. Exposurehtohthehconcepthofhvisionaryhleadership
6. ViahahManagementhReflection,hanhoverviewhofhthehrelationshiphbetweenhbusinesshstrategyh
andhbusinesshmodelhdevelopment,handhthehimportancehofhsuccessfullyhexecutinghbothhforh
ahbusinesshtohachievehitshidentifiedhobjectives
AdvancedhTopicshtohEnhancehLearningh–hApplicablehSupportinghAppendices
Thehfollowinghadditionalhappendiceshcanhbehaddedhtohthehdeliveryhofhthishchapter’shmaterialshforhinstruct
orshinterestedhinhofferinghanhadvancehunderstandinghofhahparticularhsubjecthmatter.
AppendixhAh–hAnalyzinghBusinesshSituationsh(SCQAhMethod)
AppendixhBh–hThehBusinesshModelhandhProfitability
ManagementhReflectionh–hThehBusinesshDecision-MakinghLandscape
Beinghinhbusinesshgoeshbeyondhsimplyhdevelopinghyourhvaluehpropositionhandhunderstandinghitshas
sethbasehandhcosthstructure.hIthishabouthbeinghablehtohunderstandhthehmacrohenvironmentharoundhy
ou;hthehresources,hcapability,handhcapacityhthathyouhpossess;handhthehabilityhtohcommunicatehtoht
hehmarketplacehthehuniquenesshandhimportancehofhthehproducts/serviceshyouhoffer.hAthitshcorehba
se,hdevelopinghandhmanaginghahbusinesshrequireshitshowners/managershto:
• createhahvisionhofhthehopportunityhinhthehmarketplace
• confirmhthaththehmarkethsizehofhcustomershishlargehenoughhthat,honcehcommercialized,hth
ehopportunityhcanhenablehthehorganizationhtohmakehahprofithandhsustainhthishprofitabilityhfo
rhthehanticipatedhplanninghcyclehandhbeyond
• confirmhthathahpositionhwithinhthehmarkethishfeasible,hwhichhwillhenablehthehcompanyhtoh
competehinhahmannerhthathishsuperiorhtohitshdirecthcompetition
• confirmhthaththehmarkethsituationhwillhstayhconstanthlonghenoughhforhthehbusinesshplanhto
hbehdevelopedhandhexecutedhconfirmhthaththehbusinesshhashthehresourcehbasehandhthehc
apabilityhtohexecutehthehstrategy
• executehthehstrategyhinhanhefficienthandheffectivehmanner,hachievinghthehobjectiveshset
hforthhwithinhthehbusinesshplanhcreated
Ashthishprocesshdemonstratesh(seehFigureh1.12),hbeinghinhbusinesshishreallyhahquestionhofhdevelo
pinghstrategyhandhexecutinghtacticshacrosshyourhbusinesshmodel.hStrategyhishthehdevelopmenthofh
planshandhdecisionshthathwillhguidehthehdirectionhofhthehfirmhandhdeterminehitshlong-
termhperformance.hStrategyhfocuseshonhthehvisionhofhthehfirmhandhthehopportunityhithbelieveshexist
shinhthehmarketplace.hIthalsohcheckshthaththehlifehexpectancyhofhthehproducthorhservicehishlongheno
ughhtohensurehthaththehinitialhinvestmenthcanhbehrecoveredhandhthaththehfirmhcanhmakehahprofit.hFin
ally,hstrategyhdevelopmenthassesseshwhetherhthehfirmhhashthehcompetencieshandhresourceshtohc
1-2
, INSTRUCTOR’Sh MANUAL
ompetehinhthishtargetedhmarket.hTacticsharehthehimmediate-termhactionshthathahfirmhexecuteshto
1-3
