,Instructor Solution Manual For
Essentials of Strategic Management The Quest for Competitive Advantage 8e By
John Gamble, Arthur Thompson and Margaret Peteraf
Chapter 1-10 With Cases (1-12)
Chapter 1 Lecture Note
Strategy, Business Models, and Competitive Advantage
Chapter Summary
Chapter 1 explores the fundamental concepts surrounding organizational strategy. It begins with
an explanation of the term strategy and discusses why companies need a distinctive strategy in
order to compete successfully. Next, it explores why a company must have a viable business
model and the five most dependable strategic approaches for setting a company apart. The
chapter wraps up with an illustration of how a company‘s strategy tends to evolve over time due
to changing business conditions and the three tests for winning strategies.
Lecture Outline
I. Introduction
1. A company‘s strategy is the set of actions that its managers take to outperform the
company‘s competitors and achieve superior profitability.
LO 1-1
Understand what is meant by a company‘s strategy.
2. In effect, managers must determine how many and which strategic options to pursue
including:
a. How to create products or services that attract and please customers.
b. How to position the company in the industry.
c. How to develop and deploy resources to build valuable competitive capabilities.
d. How each functional piece of the business (R&D, supply chain activities, production, sales
and marketing, distribution, finance, and human resources) will be operated.
e. How to achieve the company‘s performance targets.
© McGraw Hill LLC. All rights reserved. No
reproduction or distribution without the prior written
consent of McGraw Hill LLC.
,2 Section 6 Case Teaching Note for Case 09
CORE CONCEPT
A company‘s strategy is the coordinated set of actions that its managers take to outperform
the company‘s competitors and achieve superior profitability.
© McGraw Hill LLC. All rights reserved. No
reproduction or distribution without the prior written
consent of McGraw Hill LLC.
, Section 6 Case Teaching Note for Case 09 3
II. The Importance of a Distinctive Strategy and Competitive Approach
Connect Activity
Consider adding a LearnSmart assignment requiring the student to review this section of the
chapter as an interactive question and answer review. The assignment can be graded and posted
automatically.
LO 1-2
Explain why a company needs a creative, distinctive strategy that sets it apart from rivals.
1. For a company to matter in the minds of customers, its strategy needs a distinctive element
that sets it apart from rivals and produces a competitive edge.
2. Simply trying to mimic the strategies of the industry‘s successful companies rarely works.
3. Every company‘s strategy needs to have some distinctive element that draws in customers
and produces a competitive edge.
III. The Relationship between a Company's Strategy and Business Model
Connect Activity
Consider adding a LearnSmart assignment requiring the student to review this section of the
chapter as an interactive question and answer review. The assignment can be graded and posted
automatically.
LO 1-3
Explain why it is important for a company to have a viable business model that outlines the
company‘s customer value proposition and its profit formula.
1. A company‘s business model is management‘s blueprint for delivering a valuable product or
service to customers in a manner that will yield an attractive profit.
2. The two elements of a company‘s business model are:
a. Customer value proposition: The company‘s approach to satisfying buyer wants and needs
at a price customers will consider a good value.
b. Profit formula: The Company‘s approach to determining a cost structure that will allow
for acceptable profits given the pricing tied to its customer value proposition
© McGraw Hill LLC. All rights reserved. No
reproduction or distribution without the prior written
consent of McGraw Hill LLC.
Essentials of Strategic Management The Quest for Competitive Advantage 8e By
John Gamble, Arthur Thompson and Margaret Peteraf
Chapter 1-10 With Cases (1-12)
Chapter 1 Lecture Note
Strategy, Business Models, and Competitive Advantage
Chapter Summary
Chapter 1 explores the fundamental concepts surrounding organizational strategy. It begins with
an explanation of the term strategy and discusses why companies need a distinctive strategy in
order to compete successfully. Next, it explores why a company must have a viable business
model and the five most dependable strategic approaches for setting a company apart. The
chapter wraps up with an illustration of how a company‘s strategy tends to evolve over time due
to changing business conditions and the three tests for winning strategies.
Lecture Outline
I. Introduction
1. A company‘s strategy is the set of actions that its managers take to outperform the
company‘s competitors and achieve superior profitability.
LO 1-1
Understand what is meant by a company‘s strategy.
2. In effect, managers must determine how many and which strategic options to pursue
including:
a. How to create products or services that attract and please customers.
b. How to position the company in the industry.
c. How to develop and deploy resources to build valuable competitive capabilities.
d. How each functional piece of the business (R&D, supply chain activities, production, sales
and marketing, distribution, finance, and human resources) will be operated.
e. How to achieve the company‘s performance targets.
© McGraw Hill LLC. All rights reserved. No
reproduction or distribution without the prior written
consent of McGraw Hill LLC.
,2 Section 6 Case Teaching Note for Case 09
CORE CONCEPT
A company‘s strategy is the coordinated set of actions that its managers take to outperform
the company‘s competitors and achieve superior profitability.
© McGraw Hill LLC. All rights reserved. No
reproduction or distribution without the prior written
consent of McGraw Hill LLC.
, Section 6 Case Teaching Note for Case 09 3
II. The Importance of a Distinctive Strategy and Competitive Approach
Connect Activity
Consider adding a LearnSmart assignment requiring the student to review this section of the
chapter as an interactive question and answer review. The assignment can be graded and posted
automatically.
LO 1-2
Explain why a company needs a creative, distinctive strategy that sets it apart from rivals.
1. For a company to matter in the minds of customers, its strategy needs a distinctive element
that sets it apart from rivals and produces a competitive edge.
2. Simply trying to mimic the strategies of the industry‘s successful companies rarely works.
3. Every company‘s strategy needs to have some distinctive element that draws in customers
and produces a competitive edge.
III. The Relationship between a Company's Strategy and Business Model
Connect Activity
Consider adding a LearnSmart assignment requiring the student to review this section of the
chapter as an interactive question and answer review. The assignment can be graded and posted
automatically.
LO 1-3
Explain why it is important for a company to have a viable business model that outlines the
company‘s customer value proposition and its profit formula.
1. A company‘s business model is management‘s blueprint for delivering a valuable product or
service to customers in a manner that will yield an attractive profit.
2. The two elements of a company‘s business model are:
a. Customer value proposition: The company‘s approach to satisfying buyer wants and needs
at a price customers will consider a good value.
b. Profit formula: The Company‘s approach to determining a cost structure that will allow
for acceptable profits given the pricing tied to its customer value proposition
© McGraw Hill LLC. All rights reserved. No
reproduction or distribution without the prior written
consent of McGraw Hill LLC.
