BUS 475 Exam 1 (A+ GRADED)

Delivering a unique value correct answers The base of a business strategy --the reason a firm wins with customers or the value proposition it offers to customers -low cost advantage OR -differentiation advantage Competitive Advantage & Profits correct answers requires that a firm consistently outperform its rivals in generating above-average profits. --a firm has a competitive advantage when it can consistently generate above-average profits through a strategy that competitors are unable to imitate or find too costly to imitate Above-average profits --profit returns in excess of what an investor expects from other investments with a similar amount of risk Purpose of the Strategic Management Process correct answers to be able to identify the most attractive business opportunities and to formulate/implement a strategy for achieving competitive advantage Components of the Strategic Management Process correct answers 1. Identity: Who we are -Mission/Purpose -Vision-- future -Values-- right/wrong 2. External Analysis -Macro -Industry -Customer 3. Internal Analysis -Resources/Capabilities VRIO 4. Strategic Choice -LOB (Line of Business)-- Low Cost or Diff Corporate: Which LOB next? International 5. Implementation -Structure -Control Systems-- P&P, Compensation, Culture 6. Evaluation & Adjustment