BUSI 5190 Exam 1 Questions Correctly Answered.
Strategy - CORRECT ANSWER is defined by the specific
market positioning, competitive moves, and
business approaches that form management's
answer to "What's our plan for running the
company and producing good results?"
A strategy represents ...
BUSI 5190 Exam 1 Questions Correctly
Answered.
Strategy - CORRECT ANSWER is defined by the specific
market positioning, competitive moves, and
business approaches that form management's
answer to "What's our plan for running the
company and producing good results?"
A strategy represents - CORRECT ANSWER managerial commitment to
undertake one set of actions rather than another
Strategy is about - CORRECT ANSWER competing differently:
-mimicking others rarely works
-does not mean that key elements have to be 100% different, rather must be different in some key
aspects
A strategy stands a better chance of succeeding when it is - CORRECT ANSWER predicated on actions,
business approaches, and competitive moves aimed at:
(1) appealing to buyers in ways that set a company apart from its rivals—particularly when it comes to
doing what rivals don't do or can't do and
(2) staking out a market position that is not crowded with strong competitors.
competitive advantage - CORRECT ANSWER when an attractive number of buyers are drawn to
purchase its products or services rather than those of competitors.
sustainable competitive advantage - CORRECT ANSWER when the basis for buyer preferences for its
product offering relative to the offerings of its rivals is durable, despite competitors' efforts to nullify or
overcome the appeal of its offerings
,Five frequently used and dependable strategic approaches - CORRECT ANSWER 1. Striving to be the
industry's low-cost provider, thereby aiming for a cost-based competitive advantage over rivals.
(Southwest/Walmart)
2. Out-competing rivals based on such differentiating features as higher quality, wider product selection,
added performance, value-added services, more attractive styling, technological superiority, etc. (Apple,
Chanel)
3. Offering more value for the money. Best cost provider strategy. (hybrid of 1&2) (Lexus)
4. Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals
of serving the special needs and tastes of buyers that compose the niche. eBay, Jiffy Lube
5.Developing expertise and resource strengths that give the company competitive capabilities that rivals
can't easily imitate or trump with capabilities of their own. (Disney Theme park)
an evolving strategy - CORRECT ANSWER Changing circumstances and ongoing management efforts to
improve the strategy cause a company's strategy to evolve over time—a condition that makes the task
of crafting a strategy a work in progress, not a one-time or every-nowand-then event.
a company's strategy is a blend of - CORRECT ANSWER Proactive initiatives and reactive adjustments.
Ethics and strategy - CORRECT ANSWER A strategy cannot be considered ethical just because it involves
actions that are legal. To meet the standard of being ethical, a strategy must entail actions and behavior
that can pass moral scrutiny in the sense of not being deceitful, unfair or harmful to others,
disreputable, or unreasonably damaging to the environment.
Must pass the test of moral scrutiny - Meaning cannot cross the line from should do to should not do.
Business model - CORRECT ANSWER 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.
Two crucial elements:
, 1. customer value proposition
2. profit proposition (profit formula)
Profit proposition (profit formula), 3 requirements - CORRECT ANSWER 1. must generate a big enough
revenue stream to cover the costs of delivering and attractive value to customers.
2. Must control the costs of the value being delivered.
3. Must generate attractive profits for shareholders.
Winning strategy characteristics - CORRECT ANSWER Must fit the enterprise's external and internal
situation, help build sustainable competitive advantage, and improve company performance.
How well a company performs and the degree of market success it achieves are directly attributable to -
CORRECT ANSWER he caliber of its strategy and the proficiency with which the strategy is executed.
Good Strategy + Good Strategy Execution = Good Management
What does the Strategy-Marking, Strategy-Executing Process Entail? - CORRECT ANSWER 1. Developing
a strategic vision
2. Setting objectives
3. Crafting a strategy to achieve the objectives
4. Implementing and executing the chosen strategy
5. Monitoring developments, evaluating performance, and initiating corrective adjustments.
Strategic Vision - CORRECT ANSWER describes the route a company intends to take in developing and
strengthening its business. It lays out the company's strategic course in preparing for the future.
Must consider external and internal characteristics
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