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