3. Business Strategy

Question 1

Business Strategy

Answer 1

Defines competitive advantages identifies risk and opportunities in the market and sets priorities for resource allocation.

Question 2

Strategic Business Units (SBU)

Answer 2

Smaller units within a corporation that can pursue their own distinct strategy and be held accountable for their success or failure.

Question 3

Cost Leadership Strategy

Answer 3

Involves becoming the lowest-cost organization in a domain of activity through lower input costs economies of scale experience and product/process design.

Question 4

Differentiation Strategy

Answer 4

Involves providing unique products or services that offer more value to the customer allowing for a price premium.

Question 5

Strategy Clock

Answer 5

Provides an approach to generic strategy focused on the prices to customers allowing for incremental adjustments in strategy.

Question 6

Hybrid Strategy

Answer 6

Seeks to achieve higher benefits and lower prices relative to competitors often used to enter markets quickly or aggressively win market share.

Question 7

Strategic Lock-in

Answer 7

Where users become dependent on a supplier and are unable to use another supplier without substantial switching costs.

Question 8

Conjoint Analysis

Answer 8

A quantitative analysis used to estimate customers’ value of different products by considering attributes jointly instead of individually.