Business Strategy, Development,
Application, 4th Canadian Edition
by Gary Bissonette
Complete Chapter Solutions Manual are
included (Ch 1 to 14)
** Immediate Download
** Swift Response
** All Chapters included
** Excel Files included
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INSTRUCTOR’S MANUAL
Chapter 1: Understanding and Managing Today’s Business Enterprise
Chapter Summary
In this chapter, wenhave described the naturenof business and discussed the ways in which business
es strive to maintain their viability and relevancy through interacting with the marketplace in ways
that meet the needs, wants, and desires of targeted customers. Our discussion focused on the inter
action of business asna commercial endeavour, guided by employee interaction and supported by o
rganizational efficiency and structure. This process results in the development of a business syste
m and ultimately a business model, which together are designed to deliver desired goods and servi
ces to the marketplace. Utilizing productivenresources at their disposal (assets, labour, capital, and
managerial acumen), businesses seek to create demand, generate revenue, and drive a profit fromnt
he sale of such goods and services, thereby ensuring their long-
term profitability and growth. While striving for profitability, businesses are being increasingly ch
allenged by customers, and the marketplace at large, to be good corporate citizens, acknowledging
their responsibility to act in a socially acceptable manner and respecting the finite nature and scarc
ity of resources. This evolving requirement of businesses is resulting in a significant emphasis on r
esource sustainability and environmental initiatives.
To help you to understand why some companies are more successful than others, thisnchapter’s foc
us emphasizes (at a macro level) the importance of positioning, and developing and communicatin
g a value proposition to the customer group that a business is trying to attract, in a manner that diff
erentiates the business’s products and servicesnfrom those of its direct competitors and that attempt
s to develop and sustain a competitive advantage in the marketplace. The creation of this value pro
position takes into consideration both tangible and intangible benefits that the product or serviceno
ffers, and looks to determine the extent atnwhich price will become a key decision criterion within t
he customer’s purchase decision. The chapter closes with a discussion associated with the importa
nce and interrelationship between strategy and tactics and the need for managers to recognize that
in order to be successful, businesses not only have to properly develop a plan for serving the marke
tplace, but also must be effective innthenimplementation of this plan.
Learning Objectives
This chapter is designed to provide students with:
1. A macro-level understanding of what business is
2. An overview of the major components of a business model and how their successful
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development and execution determines business performance
3. An awareness of thenoverarching role of the business owner or “C-
suite” management team
4. An understanding of how businesses plan
5. Exposure to the concept of visionary leadership
6. Via a Management Reflection, annoverview of the relationship between business strategy a
nd business model development, and the importance of successfully executing bothnfor a b
usiness to achieve its identified objectives
Advanced Topics to Enhance Learning – Applicable Supporting Appendices
The following additional appendices can be added to the delivery of thisnchapter’s materials for instructor
s interested in offering an advance understandingnof a particular subject matter.
Appendix A – Analyzing Business Situations (SCQA Method)
Appendix B – The Business Model and Profitability
Management Reflection – The Business Decision-Making Landscape
Being in business goes beyond simply developing your value proposition and understanding its as
set base and cost structure. It is aboutnbeing able to understand the macro environment around you;
the resources, capability, and capacity that you possess; and the ability to communicate to the mar
ketplace the uniqueness and importance of thenproducts/services you offer. At its core base, develo
ping and managing a business requires itsnowners/managers to:
• create a vision of the opportunity in the marketplace
• confirm that thenmarket size of customers is large enough that, once commercialized, theno
pportunity cannenable thenorganization to make a profit and sustain this profitability for th
e anticipated planning cycle and beyond
• confirm that a position within the market is feasible, which will enable the company to c
ompete in a manner that is superior to its direct competition
• confirm that thenmarket situation will stay constant long enough for the business plan tonb
e developed and executed confirmnthatnthe business has the resource base and the capabil
ity to execute thenstrategy
• execute the strategy in an efficient and effective manner, achieving the objectives set f
orth within thenbusiness plan created
As this process demonstrates (see Figure 1.12), being in business is really a question of developi
ng strategy and executing tactics acrossnyour business model. Strategy is the development of plan
s and decisions that will guide the direction of the firmnand determine its long-
term performance. Strategy focusesnonnthe vision of the firm and the opportunity it believes exists
in the marketplace. It also checks thatnthenlife expectancy of the product or service is long enough
to ensure that the initial investment can be recovered and that the firmncan make a profit. Finally, s
trategy development assessesnwhether thenfirm has the competencies and resources to compete in
this targeted market. Tactics are the immediate-term actions that a firm executes to
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INSTRUCTOR’S MANUAL
meet the short-
term objectives set forth in thencurrent planning cycle. Tactics can be thought of as the action item
s a firm undertakes to ensurenthatnit is successful in achieving its strategic objectives. Tactics could
involve thenexpenditure of money for new equipment, the hiring of new staff with specialized skil
ls, or the manufacturing processes undertaken to develop a product or service. To successfully gro
w a company, the management team has to be successful in both planning strategy and executing t
actics. Strategically, managers need to understand where the market is going and how their produc
ts and services will fit into the market and meet customer needs. Tactically, they need to ensure th
at the right productnreaches the right customer at the right time, and atnthe right place for thenright
price. Chapter 6 outlines in more detail the strategic planning process and the relationship betwee
n strategy and tactics. Thenintent here is just to introduce these concepts so that you get a sensenas t
o their overall importance in managing a business. Their introduction now also will makenthem eas
ier for you to understand as you move through this course and textbook.
As managers, in conducting businessnwe need to avoid the temptation to become predominantly fo
cused on short-
term results. Managers need to make decisions in recognition of both immediate needs and longer
-
term requirements in order to protect and grow the general health of the organization. A key aspect
of this process is to understand that business (and the marketplace) is not static, but dynamic. It isn
changing all the time. What has worked in the past may notnnecessarily work in the future. Asnan e
xample, Blockbuster Inc. built its market leader position in the movie rental marketplace on thenba
sis of a bricks and mortar (physical store locations) business model. Successful in then1970s, 80s,
and 90s, this model gavenway to video streaming, downloading, and competitive intensity from m
arket entrants such as Netflix, Redbox, Amazon, cable companies, and mobile device and content
distributors (Rogers, Bell, Telus, etc.). Thenend result is that, by failing to change, Blockbuster we
nt from market leader valued at more than $500 million USD to a financially challenged organizat
ion in little over four years, with $900+ million USD in debt and $1.1 billion USD in losses. It ulti
mately was forced to liquidate its assets due to its inability to meet its debt obligations in 2010. Fa
st-
forward to 2023, andnwe see continuedndisruption in this entertainment streaming category. Entert
ainment streaming platforms such as Disney+, Crave, Netflix, Amazon Prime, AppleTV, Roku, T
ubi, and others continue to dramatically change the way in which we view movies, streaming serie
s, special events, etc. This has had significant impact to the movie theatre industry. Oncenthenprim
ary mechanismnfor the delivery of sensational blockbusters and major Hollywood films, the indust
ry now finds itself directly competing with the major streaming platforms. Adding to this isnthenfa
ct that the streaming platforms not only are a rival to showing these films, and/or delivering a serie
s, but also are heavily involved in their creation and production. Movie theatre chains such as Cine
plex (Canada) and Cineworld Group LLC need to determine how they will fit, going forward, into
this changing market sector. For Cineworld the situation is even more
1-3
Application, 4th Canadian Edition
by Gary Bissonette
Complete Chapter Solutions Manual are
included (Ch 1 to 14)
** Immediate Download
** Swift Response
** All Chapters included
** Excel Files included
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
INSTRUCTOR’S MANUAL
Chapter 1: Understanding and Managing Today’s Business Enterprise
Chapter Summary
In this chapter, wenhave described the naturenof business and discussed the ways in which business
es strive to maintain their viability and relevancy through interacting with the marketplace in ways
that meet the needs, wants, and desires of targeted customers. Our discussion focused on the inter
action of business asna commercial endeavour, guided by employee interaction and supported by o
rganizational efficiency and structure. This process results in the development of a business syste
m and ultimately a business model, which together are designed to deliver desired goods and servi
ces to the marketplace. Utilizing productivenresources at their disposal (assets, labour, capital, and
managerial acumen), businesses seek to create demand, generate revenue, and drive a profit fromnt
he sale of such goods and services, thereby ensuring their long-
term profitability and growth. While striving for profitability, businesses are being increasingly ch
allenged by customers, and the marketplace at large, to be good corporate citizens, acknowledging
their responsibility to act in a socially acceptable manner and respecting the finite nature and scarc
ity of resources. This evolving requirement of businesses is resulting in a significant emphasis on r
esource sustainability and environmental initiatives.
To help you to understand why some companies are more successful than others, thisnchapter’s foc
us emphasizes (at a macro level) the importance of positioning, and developing and communicatin
g a value proposition to the customer group that a business is trying to attract, in a manner that diff
erentiates the business’s products and servicesnfrom those of its direct competitors and that attempt
s to develop and sustain a competitive advantage in the marketplace. The creation of this value pro
position takes into consideration both tangible and intangible benefits that the product or serviceno
ffers, and looks to determine the extent atnwhich price will become a key decision criterion within t
he customer’s purchase decision. The chapter closes with a discussion associated with the importa
nce and interrelationship between strategy and tactics and the need for managers to recognize that
in order to be successful, businesses not only have to properly develop a plan for serving the marke
tplace, but also must be effective innthenimplementation of this plan.
Learning Objectives
This chapter is designed to provide students with:
1. A macro-level understanding of what business is
2. An overview of the major components of a business model and how their successful
1-1
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INSTRUCTOR’S MANUAL
development and execution determines business performance
3. An awareness of thenoverarching role of the business owner or “C-
suite” management team
4. An understanding of how businesses plan
5. Exposure to the concept of visionary leadership
6. Via a Management Reflection, annoverview of the relationship between business strategy a
nd business model development, and the importance of successfully executing bothnfor a b
usiness to achieve its identified objectives
Advanced Topics to Enhance Learning – Applicable Supporting Appendices
The following additional appendices can be added to the delivery of thisnchapter’s materials for instructor
s interested in offering an advance understandingnof a particular subject matter.
Appendix A – Analyzing Business Situations (SCQA Method)
Appendix B – The Business Model and Profitability
Management Reflection – The Business Decision-Making Landscape
Being in business goes beyond simply developing your value proposition and understanding its as
set base and cost structure. It is aboutnbeing able to understand the macro environment around you;
the resources, capability, and capacity that you possess; and the ability to communicate to the mar
ketplace the uniqueness and importance of thenproducts/services you offer. At its core base, develo
ping and managing a business requires itsnowners/managers to:
• create a vision of the opportunity in the marketplace
• confirm that thenmarket size of customers is large enough that, once commercialized, theno
pportunity cannenable thenorganization to make a profit and sustain this profitability for th
e anticipated planning cycle and beyond
• confirm that a position within the market is feasible, which will enable the company to c
ompete in a manner that is superior to its direct competition
• confirm that thenmarket situation will stay constant long enough for the business plan tonb
e developed and executed confirmnthatnthe business has the resource base and the capabil
ity to execute thenstrategy
• execute the strategy in an efficient and effective manner, achieving the objectives set f
orth within thenbusiness plan created
As this process demonstrates (see Figure 1.12), being in business is really a question of developi
ng strategy and executing tactics acrossnyour business model. Strategy is the development of plan
s and decisions that will guide the direction of the firmnand determine its long-
term performance. Strategy focusesnonnthe vision of the firm and the opportunity it believes exists
in the marketplace. It also checks thatnthenlife expectancy of the product or service is long enough
to ensure that the initial investment can be recovered and that the firmncan make a profit. Finally, s
trategy development assessesnwhether thenfirm has the competencies and resources to compete in
this targeted market. Tactics are the immediate-term actions that a firm executes to
1-2
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INSTRUCTOR’S MANUAL
meet the short-
term objectives set forth in thencurrent planning cycle. Tactics can be thought of as the action item
s a firm undertakes to ensurenthatnit is successful in achieving its strategic objectives. Tactics could
involve thenexpenditure of money for new equipment, the hiring of new staff with specialized skil
ls, or the manufacturing processes undertaken to develop a product or service. To successfully gro
w a company, the management team has to be successful in both planning strategy and executing t
actics. Strategically, managers need to understand where the market is going and how their produc
ts and services will fit into the market and meet customer needs. Tactically, they need to ensure th
at the right productnreaches the right customer at the right time, and atnthe right place for thenright
price. Chapter 6 outlines in more detail the strategic planning process and the relationship betwee
n strategy and tactics. Thenintent here is just to introduce these concepts so that you get a sensenas t
o their overall importance in managing a business. Their introduction now also will makenthem eas
ier for you to understand as you move through this course and textbook.
As managers, in conducting businessnwe need to avoid the temptation to become predominantly fo
cused on short-
term results. Managers need to make decisions in recognition of both immediate needs and longer
-
term requirements in order to protect and grow the general health of the organization. A key aspect
of this process is to understand that business (and the marketplace) is not static, but dynamic. It isn
changing all the time. What has worked in the past may notnnecessarily work in the future. Asnan e
xample, Blockbuster Inc. built its market leader position in the movie rental marketplace on thenba
sis of a bricks and mortar (physical store locations) business model. Successful in then1970s, 80s,
and 90s, this model gavenway to video streaming, downloading, and competitive intensity from m
arket entrants such as Netflix, Redbox, Amazon, cable companies, and mobile device and content
distributors (Rogers, Bell, Telus, etc.). Thenend result is that, by failing to change, Blockbuster we
nt from market leader valued at more than $500 million USD to a financially challenged organizat
ion in little over four years, with $900+ million USD in debt and $1.1 billion USD in losses. It ulti
mately was forced to liquidate its assets due to its inability to meet its debt obligations in 2010. Fa
st-
forward to 2023, andnwe see continuedndisruption in this entertainment streaming category. Entert
ainment streaming platforms such as Disney+, Crave, Netflix, Amazon Prime, AppleTV, Roku, T
ubi, and others continue to dramatically change the way in which we view movies, streaming serie
s, special events, etc. This has had significant impact to the movie theatre industry. Oncenthenprim
ary mechanismnfor the delivery of sensational blockbusters and major Hollywood films, the indust
ry now finds itself directly competing with the major streaming platforms. Adding to this isnthenfa
ct that the streaming platforms not only are a rival to showing these films, and/or delivering a serie
s, but also are heavily involved in their creation and production. Movie theatre chains such as Cine
plex (Canada) and Cineworld Group LLC need to determine how they will fit, going forward, into
this changing market sector. For Cineworld the situation is even more
1-3
