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Terms in this set (44)
-How can a company attract, keeps, and please customers?
-How should the company respond to changing economic and market conditions?
-How should the company be competitive against rivals?
-How should the company position itself in the marketplace
What are the managerial considerations in determining how to compete successfully?
Management's action plan for outperforming competitors and achieving superior profitability
A company's strategy concerns:
grow the business, stake out market position, attract and please customers, compete successfully, conduct operations, and achieve performance objectives
A company's strategy consists of the action plan management is taking to:
Management's commitment to provide direction and guidance, in terms of not only what the company should do but also what it should not do
A company's strategy is most accurately defined as:
a distinctive element that attracts customers and produces a competitive edge
Every strategy needs:
managers need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals
In crafting a company's strategy:
involves coming up with moves and actions that produce a durable competitive edge over rivals
The heart and soul of a company's strategy-making effort:
crafting a strategy that yields a competitive advantage over rivals
What is a company's out reliable means of achieving above-average profitability and financial performance?
it provides buyers with superior value compared to rival sellers or offers the same value at a lower cost
A company achieves a competitive advantage when:
is a company's most reliable ticket to above average profitability and a competitive advantage
A creative distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage:
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 comprising the niche
A frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?
come up with a distinctive element that builds strong customer loyalty and yields a winning competitive edge
Frequently used successful and dependable strategic approach:
-changing circumstances that affect performance
-competitor moves in the market and shifting needs of buyers
-stagnating market and restrictive industrial opportunities
-mounting evidence that the strategy is less effective
Managers must be prepared to modify their strategy in response to:
the ongoing need of company managers to react and respond to changing market and competitive conditions
A company's strategy is a work in progress and evolves over time because of:
proactive and reactive strategy elements
A company's strategy is typically a blend of?
-abandon certain strategy elements that have grown obsolete
-modify the current strategy when conditions take an unexpected turn
-modify the current strategy in response to the fresh strategic maneuvers of rival firms
-take proactive actions to improve this or that piece of the strategy
It is common for management to do what while crafting a strategy?
company's business model
Management's blueprint for how it will generate revenues sufficient to cover costs and yield an attractive profit:
zeros in on the customer value proposition and its profit formula
A company's business model:
sets forth key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner
A company's business model:
strategy relates broadly to a company's competitive moves and business approaches, a business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint go being able to generate revenues sufficient to cover costs and realize a profit
The difference between company's strategy and business model:
customer value proposition
Lays out the company's approach to satisfying buyer wants and needs at a price customers will consider a good value:
Fits the company's internal and external situations, builds sustainable competitive advantage, and improves company performance
The Fit test, Competitive Advantage test, and The Performance test
A winning strategy must pass which 3 tests?
How well does the strategy fit the company's situation?
Which question can be used to distinguish a winning strategy from a mediocre or losing strategy?
good strategy-making combines with good strategy execution
The most telling signs of a well-managed company are:
what must managers do, and do well, to make a company a winner in the marketplace?
What is the foremost question in running a business enterprise?
Consists of the competitive moves and business approaches that managers employ to attract and please customers, compete successfully, capitalize on opportunities to grow the business, respond to changing market conditions, conduct operations, and achieve the targeted financial and market performance:
managerial commitment to undertake one set of actions rather than another
A strategy represents:
-What is the firm's present situation?
-What direction to head and what performance targets to set?
-How to run the firm in ways that produce good results?
What are the 3 strategic questions all firms must answer?
distinctive product offering
A strategic approach needs to feature a ________________________________ that buyers believe delivers superior value and that offers potential for winning a competitive advantage over rivals.
-results in a product offering that wins buyer applause
-helps strengthen the firms competitiveness and ability to compete successfully
-well-matched to ongoing shifts in market conditions
-lessens the likelihood different managers will inadvertently make decisions
-improve the firm's financial performance
-helps produce a competitive edge over rivals
Every company's management team needs a clear, specific, and deliberate action plan that:
compete differently from rivals
Crafting a good strategy entails deliberately choosing to compete differently from rivals
Really successful strategies contain a:
-attracts buyer attention
-delivers superior value
-converts buyers into loyal customers
=gives the company added competitive power
act to boost profitability and help gain a competitive edge over rivals
When an attractive number of buyers are drawn to purchase its products or services rather than those of competitors:
sustainable competitive advantage
When the basis for buyer preferences for its product/service offering relative to the offerings of its rivals is durable despite competitors best effort to nullify or overcome the appeal of its offering:
Sets forth how its strategy and operating approaches will create value for customers while also generating ample revenues to cover costs and realize a profit
more attractive value proposition
The greater the value delivered to customers and the lower the price:
profit proposition or profit formula
how the firm will create and deliver customer value in a cost-efficient manner and at a price that produces enough revenues to cover costs and enable attractive profits
more appealing profit proposition or profit formula
The lower a firm's costs are in relation to the revenues generated:
the goodness of fit test
Is the strategy well-matched to the firm's internal and external situation?
the competitive advantage test
Is the strategy helping the company achieve a sustainable competitive advantage?
the performance test
Is the strategy producing good company performance?
According to the Wall Street Journal, the demand for shipping transportation vehicles exceeded the global supply in 2017. This had what impact on the income statement for many companies which ship products worldwide?
4-8 An offer to purchase the stock of a firm targeted for acquisition
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