GEB 4890 Exam Questions With Verified Answers

GEB 4890 Exam Questions With Verified Answers Company strategy - answerthe set of actions that its managers take to outperform the company's competitors and achieve superior profitability. what makes a competitive advantage sustainable: - answerare elements of the strategy that give buyers lasting reasons to prefer a company's products or services over those of competitors- -reasons that the competitors are unable to nullify or overcome despite their best efforts. most basic 5 approaches for setting a company apart from rivals and winning a sustainable competitive advantage - answer1-low-cost provider strategy, 2-broad differentiation strategy, 3-focused low-cost strategy 4-focused differentiation strategy, 5-best-cost provider strategy company's strategy tends to evolve - answerbecause of changing circumstances and ongoing efforts by management to improve the strategy. why should a company have a viable business model that outlines the company's customer value proposition and its profit formula? - answerA company's business model sets forth the logic for how its strategy will create value for customers and at the same time generate revenues sufficient to cover costs and realize a profit. Thus, it contains 2 crucial elements, (1) the customer value proposition, & (2) the profit formula. These elements are illustrated by the value- price-cost framework. A winning strategy must pass three tests: - answer(1) fit (external, internal, and dynamic consistency), (2) competitive advantage ( durable competitive advantage), and (3) performance (outstanding financial and market performance). low-cost provider strategy - answerachieving a cost-based advantage over rivals. broad differentiation strategy - answerseeking to differentiate the company's product or service from that of rivals in ways that will appeal to a broad spectrum of buyers. focused low-cost strategy - answerconcentrating on a narrow buyer segment and outcompeting rivals by having lower costs and thus being able to serve niche members at a lower price. focused differentiation strategy - answerconcentrating on a narrow buyer segment (or market niche) and outcompeting rivals by offering buyers customized attributes that meet their specialized needs and tastes better than rivals' products. best-cost provider strategy - answergiving customers more value for the money by satisfying their expectations on key quality features, performance, and/or service attributes while beating their price expectations. Blends low-cost provider and differentiation strategies; the aim is to have lower costs than rivals while simultaneously offering better differentiating attributes. crafting a good strategy covers both S-T and L-T, achieving this entails making a managerial commitment to a coherent array of well-considered choices about how to compete: These include: - answer-How to position the company in the market place. '-How to attract customers. '-How to compete against rivals. '-How to achieve the company's performance targets. '-How to capitalize on opportunities to grow the business. '-How to respond to changing economic and market conditions. A strategy stands a better chance of succeeding when it is predicated on actions, business approaches, and competitive moves aimed at: - answer(1) appealing to buyers in ways that set a company apart from its rivals and (2) staking out a market position that is not crowded with strong competitors. A company achieves a __________ when it provides buyers with superior value compared to rival sellers or offers the same value at a lower cost to the firm. - answercompetitive advantage The advantage is _________ if it persists despite the best efforts of competitors to match or surpass this advantage. - answersustainable Changing circumstances and ongoing management efforts to improve the strategy cause a company's strategy to : - answerevolve over time--a condition that makes the task of crafting strategy a work in progress, not a one-time event. A company's strategy is shaped partly by: - answermanagement analysis and choice and partly by the necessity of adapting and learning by doing. The evolving nature of a company's strategy means that the typical company strategy is a blend of - answer(1) proactive and (2) reactive Proactive - answerplanned initiatives to improve the company's financial performance and secure a competitive edge reactive - answerresponses to unanticipated developments and fresh market conditions. A deliberate strategy - answerconsists of proactive strategy elements that are both planned and realized as planned (while other planned strategy elements may not work out and are abandoned in consequence). A company's _______ consists of proactive strategy elements that are planned - answerdeliberate strategy A company's ________ consists of reactive strategy elements that emerge as changing conditions warrant. - answeremergent strategy A company's ________ can be observed in the pattern of its actions over time, which is a far better indicator than any of its strategic plans on paper or any public pronouncements about its strategy - answerrealized strategy business model - answeris management's blueprint for delivering a valuable product or service to customers in a manner that will generate revenues sufficient to cover costs and yield an attractive profit. the two elements of a company's business model are: - answer(1) customer value proposition and (2) profit formula. Customer value proposition - answerlays out the company's approach to satisfying the buyer wants and needs at a price customers will consider a good value. profit formula - answerdescribes the company's approach to determining a cost structure that will allow for acceptable profits, given the pricing tied to its customer value proposition. The _________ reveals how efficiently a company can meet customer wants and needs and deliver on the value proposition. - answerprofit formula A company's ________ sets forth the logic for how its strategy will create value for customers and at the same time generate revenues sufficient to cover costs and realize a profit. - answerbusiness model The fit test - answerHow well does this strategy fit the company's situation?--a strategy that must exhibit well along three dimensions: (1) external, (2) internal, and (3) dynamic--evolve over times in a manner that maintains close and effective alignment with company's situation even as internal/external conditions change. The competitive advantage test: - answerIs the strategy helping the company achieve a sustainable advantage? --winning strategies enable a company to achieve a competitive advantage over key rivals that is long-lasting. The bigger and more durable the C.A. the more powerful it is. The performance test - answerIs the strategy producing superior company performance?-- Two indicators (1) competitive strength and market standing and (2) profitability and financial strength. Above-average financial performance or gains in market share, competitive position or profitability are signs of a winning strategy. good strategy '+ good strategy execution '= - answergood management. Why is it critical for company managers to have a clear strategic vision of where a company needs to head? - answerwhen clearly articulated it communicates management's aspirations