Chapter 5 Business mission and strategy

List the steps in identifying a sustainable competitive advantage for a business in the order starting from step one to step three

Develop a list of the assets and capabilities of one's business Break the list of assets and capabilities into two groups standard and unique evaluate the unique resources capabilities of ones business

What are the financial gains garnered from an asset or capability that are in excess of the ordinary returns in that particular industry

Economic rents

The first mover advantage occurs when customer loyalty can be obtained if customers are driven principally by something other than cost and the firm is a first to market with a different approach

First mover

Implementing is tragedy is about

Fit with the business alignment within the business

Match the definition to the appropriate business strategy

Focus: six to craft a business around a small set of customers specialty products or small geographic area low cost: six to be the lowest cost competitor in the industry Differentiations: six to find a unique position in the market your product service and location

Which of the following are criteria used to evaluate the unique resources and capabilities of a business venture

Is it durable is it rare is it valuable is it easily substituted

Which of the following are key characteristics that should drive the new business owner in developing a mission statement

Keep it simple keep it applicable be specific keep it short

Which of the following is a benefit of followers

Learning from the mistakes of the first movers

Which of the following statements are true of substitutes

Set a size the same basic need as a firm product it is not provided by direct competitor

Step two of the process of identifying a sustainable competitive advantage involves splitting the list of assets into which of the following two categories

Standard assets Unique assets

List in order before logical steps in developing The firms strategy

The firms mission statement is employee to specify where the firm is to compete and how A detailed strategy plan is Lido specifying a series of resources and capabilities does tragedy meets the criterion i've been defendable for some length of time this strategy needs to be constantly reevaluated

Which of the following are important features of the mission statement

The mission statement must be understood by all the businesses stakeholders The mission statement must describe what the company does or does not do The mission statement must be concise

Which assets typically provide a business with a competitive advantage for some period of time

Unique

Which of the following motivates potential customers to select the new business venture

Unique capabilities unique resources

Which of the following are steps in identifying a sustainable competitive advantage

Break the list into two groups standard and unique develop a list of your business assets and capabilities evaluate the unique resources and capabilities

The key to the ability to communicate a mission easily is at the statement be

Direct simple appropriate