6. Strategic Choices: Business Strategies

Question 1

Strategic Business Unit (SBU):

Answer 1

Part of an organization for which there is a distinct direct market for goods/services that is different from another SBU.

Question 2

Competitive Advantage:

Answer 2

Competitive advantages result from performing strategic activities cheaper and/or better than others.

Question 3

What are sustainable advantages:

Answer 3

Sustainable advantages are:
-Of value to the customer
-Perceivable to the customer
Secured, not easy to copy

Question 4

What are the Porter´s generic (business) strategies?

Answer 4

-Cost leadership
-Differentiation
-Cost focus
-Differentiation focus

Question 5

How did the concept of customer value evolve?

Answer 5

Customer value evolved from being solely about quality and price, but also convenience and after-sale service.

Question 6

Game theory:

Answer 6

It encourages a company to consider the likely moves of competitors and the impact of these moves on stategy.