BUS400 Ch. 1

When a company possesses elements of a strategy that give buyers lasting reasons to prefer a company's products or services over those of competitors, it is said to have a

sustainable competitive advantage.

A company's strategy does not include choices about which of the following?

How to maximize shareholder wealth.

The _____________ describes the company's approach to determining a cost structure that will allow for acceptable profits, given the pricing tied to its customer value proposition.

Profit formula

Winning a sustainable competitive advantage over rivals generally hinges on both

building competitively valuable expertise and capabilities that rivals cannot readily match and having a distinctive product offering.

Which of the following are not elements to look for when trying to identify a company's strategy?

Actions to ensure that executive compensation levels match, or exceed, those of relevant competitors.

The nitty-gritty issue surrounding a company's business model is whether it can specify its profit formula accurately

False

A winning strategy must pass which three tests?

The fit test, the competitive advantage test, and the performance test.

Which of the following are the three tests that can be applied to determine whether a strategy is a winning strategy?

The fit test, the competitive advantage test, and the performance test.

A company achieves a competitive advantage whenever it has some type of edge over rivals in attracting buyers and coping with competitive forces.

True