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Terms in this set (49)
Business Strategy is only for Manufacturing businesses
A successful Business Strategy addresses only three factors:
Where to compete.
Creating unique value relative to the competition.
What is needed to deliver the value.
false ; There are four factors that a successful Business Strategy must include. The fourth element missing is "How to sustain the competitive advantage by avoiding imitation from competitors."
The elements of focus for conducting the Internal Analysis are Weaknesses and Threats.
false ; Correct answer is Strengths and Weaknesses.
Part of the Business Strategy is to define the Markets where the company chooses to complete.
Which element of the Business Strategy is the only one that addresses the competition directly?
What is the goal of creating the Strategic Plan?
Create Competitive Advantage
When positioning the firm for a unique value proposition, there are two generic approaches:
1. Low Cost
2. Product or Service Differentiation
The elements of focus for conducting the External Analysis are Threats and Opportunities.
Strategy vehicles pertain to the logistics that a firm uses for downstream Supply Chain members
false ;These are the decisions the Leadership team makes to support the Business Strategy.
Emergent Strategies are used in foreign countries that are just starting to exhibit market growth.
fasle ;Emergent Strategies are not deliberately formulated but rather are by-products or offshoots of a Deliberate Strategy.
The landscape, or market-space, that a firm intends to compete in is shaped mainly by the industry being served and the products or services being offered.
The force that pertains to the strength of the competition in Porter's Five Forces is "Rivalry".
Which force in Porter's Five Forces pertains to "knock-offs" or "imitations"?
Ease of Substitutes
Switching costs are those costs associated with a company moving to a different industry.
Exit Barriers are associated with how easy it is for customers to exit one product or service and pursue another.
The greater the number of upstream suppliers there are providing the same raw material, the greater the supplier strength.
Industry attractiveness would pertain to such information as:
Is the industry growing?
Is the industry declining?
Is the industry profitable?
Are there few rivalries?
Are there barriers to entry?
The forces encountered in the General Environment are the same for all industries.
Complimentary products / services are the ability to cross sell a firms products / services into other markets.
The value chain assesses the value of the company's competitive advantage vs. the competition.
In the Resource-Based View of an organization, the Resources include all of the following except:
Dynamic capabilities help to improve a firm's competitive advantage.
Dynamic capabilities are very easily created in a relatively short period of time.
Priorities are necessary to allocate limited resources to the most important projects and values.
In the VRIO Model, the purpose of the model is to create a competitive advantage.
In the VRIO Model of Sustainability, the "R" is for....
Being the unique option
Path Dependence is created as part of the Value principle within the VRIO Model.
A Competitive Failure exists when a company has nothing in terms of Value, Rarity, Inimitability or Organized to Exploit that would separate it from the competition.
In the Company Diamond tool, one benefit of using the tool is a methodical approach to assessing a firm's strengths and weaknesses.
Economies of Scale exist when a company increases it's profits due to decreasing volume of units sold.
Companies realize increased profits by growing their volume of unit sales and are thus able to spread their fixed costs among larger volume of units.
The point of Minimum Efficient Scale is the point of lowest profitability.
A Cost Advantage Strategy is where the unique value offered to customers is due to the ability to charge more for the products or services due to the company brand or reputation.
Experience Curves show the reduction in cost per unit based on the Cumulative Volume of Production not just a finite period of time.
Increasing Market Share is not a guarantee of increased profits.
Which of the following is not a an advantage due to Location Advantages?
Product Differentiation is a strategy companies use to position their products or services better than the competition based on a particular attribute that offers better value to the customer.
Reputation or Brand Image is a differentiator that may enable companies to charge a higher price for their products or services.
Customer Segmentation is a method of grouping your customer base into separate groups. Each group is then targeted based upon their needs.
Which of the following is applicable for focusing on a competitive advantage within a single market?
Business Unit Strateg
Adding new brands to a company product offering is an example of creating value through exploiting existing resources.
Which of the Eight S's pertains to companies that slowly enter new markets in increments so that they learn about the customers, market space, competition, and expand their internal resources and capabilities.
Sometimes the diversification strategy does not live up to expectations. The reasons for this type of failure has many causes. What is the main reason for failure when management attempts to enter new markets, acquire other businesses or launch new products just because the competition is doing that?
The Boston Consulting Group established a Matrix that provided groupings of products. The purpose of this matrix was to show management what products are producing revenue and which ones are not. Within the matrix, what grouping provides the necessary cash to fuel new products and acquisitions?
What is the terminology used that describes the "homework" companies need to do prior to proceeding with an acquisition?
Which of the General Integration Strategies is used when a company targets an acquisition in order to remove a competitive product from the market?
The Integration Team are the resources used to perform the research necessary that identifies target acquisitions.
Greenfield entry refers to company's adopting an environmentally sound strategy for diversification.
The essence of differentiation is to make choices that are different from those of rivals.• Successful differentiators create offerings that "delight" customers ("that was awesome").• Delight and awesome products come from doing something unexpected or surprising....perceptively better than competitive offerings. (NPS helps here)
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