BUS 475 Midterm Study Guide (A+ GUARANTEED)

Strategy correct answers the coordinated set of actions that its managers take in order to outperform the company's competitors and achieve superior profitability Objective correct answers the sort of lasting success that can support growth and secure the company's future over the long term What does the Objective include? correct answers -how to position the company in the marketplace -how to attract customers -how to compete against rivals -how to achieve the company's performance targets -how to capitalize on opportunities to grow business -how to respond to changing economic and market conditions The 5 P's of Strategy correct answers Plan, Ploy, Pattern, Position(ing), Perspective The 5 Elements of Strategy correct answers -Arenas: where the organization will be active in terms of product categories, market segments, geographic areas, core tech, value-creation stages -Vehicles: how will we get there? -Differentiators: how to win the market. Why will customers pick you rather than other companies within your industry? -Staging: what will be out speed and sequence? -Economic Logic: how will we obtain our returns? Blue Ocean Strategy correct answers Business-level strategy that successfully combines differentiation and cost-leadership activities using value innovation to reconcile the inherent trade-offs. -companies who come up with something that is not out there Competitive Advantage correct answers a company has a competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces Having a Competitive Advantage involves one or two basic mechanisms correct answers -provide the customer with a product/service that the customer values more highly than others -they produce their product/service more efficiently (lower costs) What makes a competitive advantage Sustainable (or durable?) correct answers the elements of the strategy that give buyers lasting reasons to prefer a company's products/services over those competitors Five of the most frequently used and dependable strategic approaches to setting a company apart from rivals correct answers -low cost provider strategy -broad differentiation strategy