STRATEGIC MANAGEMENT EXAM 1 (CHAPTER 1-5)
QUESTIONS WITH COMPLETE SOLUTIONS.
Strategy Answer - explains why the company matters in the market place by
specifying an approach to creating superior value for customers and
determining how capabilities and resources will be utilized to deliver the
desired value to customers.
business model Answer - set forth how its strategy and operating approaches
will create value for customers, while at the same time generate ample
revenues to cover costs and realize a profit. two elements 1) customer value
proposition 2) its profit formula .
a low cost provider strategy Answer - can produce a durable competitive edge
when rivals find it hard to match the low -cost leader's approach to driving
costs out of business. Ex. Walmart and southwest
a broad differentiation strategy Answer - seeking differentiate the company's
product or service from rivals in ways that will appeal to a broad spectrum of
buyers. EX. Johnson & John(product reliability)Apple(innovative products)
a focused low-cost strategy Answer - concentrating on a narrow buyer
segment and out competing rivals by having lower costs than rivals and being
about to niche members at lower price. Ex. private label manufacturers use low
cost to offer to supermarket buyers than by producers.
,a focused differentiation strategy Answer - concentrating on a narrow buyer
segment(Market niche) and out competing rivals by offering niche members
customized attributes. EX. Louis Vuitton and Rolex
a best cost provider strategy Answer - giving customers more value for the
money by satisfying buyers expectations on key
quality/features/performance/service.
sustainable competitive advantage Answer - attractively large number of
buyers develop a durable preference for its products and services over the
offering of competitors , despite the effort of competitors to overcome or
erode its advantage.
evolving nature of company's strategy Answer - 1) proactive moves to improve
the company's financial performance and secure a competitive edge 2)
adaptive reactions to unanticipated developments and fresh market conditions.
emergent strategy Answer - is a combination of deliberate planned elements
and unplanned , emergent elements. Some components of a company's
deliberate strategy will fail in the marketplace and become abandoned strategy
elements.
which of the following statements about a company's strategy is true? Answer
- strategy at its essence is about competing differently- doing what rival firms
do not do or cannot do.
A company's business model sets forth how its strategy and operating
approaches Answer - will create value for customers and realize a profit
, which of the following is not related to actions and approaches that comprise a
company's strategy? Answer - providing shareholders that the company's
business model is visible.
In answering the question " how well does the strategy fit the company's
situation" management must have deliberate plans for addressing such issues
as Answer - changing market conditions, development of internal capabilities
and competencies, and allocation of financial resources.
which of the following is not an element of a company's business strategy?
Answer - adhering to abandoned strategy elements.
which of the following is not of the most frequently used strategic approaches
to building competitive advantage? Answer - sticking with an outdated
business model
the heart and soul of any strategy Answer - is the actions and moves to gain a
competitive edge over rivals in the marketplace.
Strategies that yield sustainable competitive advantage are important because
Answer - these enable company to attract sufficiently large numbers of buyers
who have a lasting preference for its products or service over those offered by
rivals, despite the efforts of competitors to offset that appeal and overcome
the company's advantage.
a company achieves sustainable competitive advantage when Answer - an
attractively large number of buyers develop a durable preference for its
products or services over the offerings of competitors, despite the efforts of
competitors to overcome or erode its advantage.
QUESTIONS WITH COMPLETE SOLUTIONS.
Strategy Answer - explains why the company matters in the market place by
specifying an approach to creating superior value for customers and
determining how capabilities and resources will be utilized to deliver the
desired value to customers.
business model Answer - set forth how its strategy and operating approaches
will create value for customers, while at the same time generate ample
revenues to cover costs and realize a profit. two elements 1) customer value
proposition 2) its profit formula .
a low cost provider strategy Answer - can produce a durable competitive edge
when rivals find it hard to match the low -cost leader's approach to driving
costs out of business. Ex. Walmart and southwest
a broad differentiation strategy Answer - seeking differentiate the company's
product or service from rivals in ways that will appeal to a broad spectrum of
buyers. EX. Johnson & John(product reliability)Apple(innovative products)
a focused low-cost strategy Answer - concentrating on a narrow buyer
segment and out competing rivals by having lower costs than rivals and being
about to niche members at lower price. Ex. private label manufacturers use low
cost to offer to supermarket buyers than by producers.
,a focused differentiation strategy Answer - concentrating on a narrow buyer
segment(Market niche) and out competing rivals by offering niche members
customized attributes. EX. Louis Vuitton and Rolex
a best cost provider strategy Answer - giving customers more value for the
money by satisfying buyers expectations on key
quality/features/performance/service.
sustainable competitive advantage Answer - attractively large number of
buyers develop a durable preference for its products and services over the
offering of competitors , despite the effort of competitors to overcome or
erode its advantage.
evolving nature of company's strategy Answer - 1) proactive moves to improve
the company's financial performance and secure a competitive edge 2)
adaptive reactions to unanticipated developments and fresh market conditions.
emergent strategy Answer - is a combination of deliberate planned elements
and unplanned , emergent elements. Some components of a company's
deliberate strategy will fail in the marketplace and become abandoned strategy
elements.
which of the following statements about a company's strategy is true? Answer
- strategy at its essence is about competing differently- doing what rival firms
do not do or cannot do.
A company's business model sets forth how its strategy and operating
approaches Answer - will create value for customers and realize a profit
, which of the following is not related to actions and approaches that comprise a
company's strategy? Answer - providing shareholders that the company's
business model is visible.
In answering the question " how well does the strategy fit the company's
situation" management must have deliberate plans for addressing such issues
as Answer - changing market conditions, development of internal capabilities
and competencies, and allocation of financial resources.
which of the following is not an element of a company's business strategy?
Answer - adhering to abandoned strategy elements.
which of the following is not of the most frequently used strategic approaches
to building competitive advantage? Answer - sticking with an outdated
business model
the heart and soul of any strategy Answer - is the actions and moves to gain a
competitive edge over rivals in the marketplace.
Strategies that yield sustainable competitive advantage are important because
Answer - these enable company to attract sufficiently large numbers of buyers
who have a lasting preference for its products or service over those offered by
rivals, despite the efforts of competitors to offset that appeal and overcome
the company's advantage.
a company achieves sustainable competitive advantage when Answer - an
attractively large number of buyers develop a durable preference for its
products or services over the offerings of competitors, despite the efforts of
competitors to overcome or erode its advantage.
