BA 4302 Chapter 1

What are some of the issues that are likely to be addresses by a company's business strategy?

- Actions to respond to changing economic and market conditions. - Actions to supplement the company's resources and capabilities through alliances and joint ventures. - Reactions and approaches used in managing the functional areas of business.

What are some frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?

- Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage. - Out-competing rivals on the basis of such differentiating features. - Developing competitively valuable resources and capabilities that rivals can't easily match. - Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals or serving the special needs and tastes of buyers in that niche.

It is normal for a company's strategy to end up being

A blend of deliberate planned actions to improve the company's competitiveness and financial performance and as-needed unplanned reactions to unanticipated developments and fresh market conditions.

Which of the following statements about a company's realized strategy is true?

A company's realized strategy is typically a blend of deliberate/planned initiatives and emergent/unplanned reactive strategy elements.

A creative, distinctive strategy that delivers a sustainable competitive advantage is important because

A strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance.

A company's realized strategy is made up of

Both deliberate/planned initiatives that have proven themselves in the marketplace and newly launched initiatives aimed at further boosting performance and emergent/reactive adjustments to unanticipated strategic moves by rivals, unexpected changes in customer preferences, and new market opportunities.

A company's strategy consists of:

Competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives.

Managers in all types of businesses must address the central strategic question:

How are we going to get there?

Which of the following questions ought to be used to distinguish a winning strategy from a so-so or flawed strategy?

Is the strategy well-matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance?

The elements of a company's business model are

Its customer value proposition as well as the company's profit formula.

Which of the following is NOT an element of a company's business strategy?

Management's actions to revise the company's financial and strategic performance budgets

In evaluating proposed or existing strategies managers should

Scrutinize the company's existing strategies compatibility with desired outcomes on a regular basis.

A creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage

Signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives.

The competitive moves and business approaches a company's management is using to grow the business, compete successfully, attract and please customers, conduct operations, respond to changing economic and market conditions, and achieve organizational objectives is referred to as its:

Strategy

A viable business model includes a valuable customer value proposition that

Suggests the greater the value provided and the lower the price, the more attractive the value proposition.

Which of the following is NOT one of the basic reasons that a company's strategy evolves over time?

The need on the part of company managers to improve the company's business model.