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GEB 4890 Exam 1 Questions with Correct Answers
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GEB 4890 Exam 1 Questions with Correct Answers
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GEB 4890 Exam 1 Questions with Correct Answerscompany strategy Correct Answer-the set of actions that its managers
take to outperform the company's competitors and achieve superior
profitability.
what makes a competitive advantage sustainable: Correct Answer-are
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 Correct Answer-1-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 Correct Answer-because 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? Correct
Answer-A 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: Correct 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 Correct Answer-achieving a cost-based
advantage over rivals.
broad differentiation strategy Correct Answer-seeking 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 Correct Answer-concentrating 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 Correct Answer-concentrating 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 Correct Answer-giving 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: Correct 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: Correct
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. Correct Answer-competitive advantage
The advantage is _________ if it persists despite the best efforts of
competitors to match or surpass this advantage. Correct Answer-
sustainable
Changing circumstances and ongoing management efforts to improve
the strategy cause a company's strategy to : Correct Answer-evolve 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: Correct Answer-management
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 Correct Answer-(1) proactive and (2)
reactive
Proactive Correct Answer-planned initiatives to improve the company's
financial performance and secure a competitive edge
reactive Correct Answer-responses to unanticipated developments and
fresh market conditions.
A deliberate strategy Correct Answer-consists 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 Correct Answer-deliberate strategy
A company's ________ consists of reactive strategy elements that
emerge as changing conditions warrant. Correct Answer-emergent
strategy
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