Chapter 1

Question 1

What must all managers of a business determine a clear understanding of?

Answer 1

Why a company exists and wht the company matters in the marketplace.

Question 2

Spells outs why the company matters in the marketplace by defining its approach to creating superior value for customers and how capabilitiies and resources will be employed to deliver the desired value to customers

Answer 2

Strategy

Question 3

When does a strategy stand a chance of being sucessful?

Answer 3

When it foxuses on setting itself apart from its competitors.

Question 4

What is strategy at its essence?

Answer 4

Doing what rivals cannot or will not do.

Question 5

sets forth how its strategy and operating approaches will create valjue for customers, while at the same time generating revenues to cover costs and turn a profit.

Answer 5

Business Model

Question 6

What are two major parts of a a business model

Answer 6

Customer value proposition

Profit Formula

Question 7

Lays out company’s approach to satisfying buyer wants and needs at a price customers will consider a good value

Answer 7

Customer value proposition

Question 8

company’s approach to determining a cost structure that will allow for acceptable profits given the pricing tied to its customer value proposition.

Answer 8

Profit Formula

Question 9

Study Porter’s general strategies

Answer 9

Okay

Question 10

What is the first part of a sustainable advantage?

Answer 10

Attracting a large number buyers that develop a durable preference for its products or services over competitors

Question 11

What is the second part of a sustainable advantage?

Answer 11

despite the efforts of competitors to overcome or erode its advantage.

Question 12

How do company’s strategies often evolve over time?

Answer 12

incrementally as management fine-tunes various pieces of the strategy and adjusts the strategy to respond to unfolding events.

Question 13

What are some cases in which major strategy shifts are called for?

Answer 13

Failing strategy, or large market shift.

Question 14

What are the two natures of evolving strategy?

Answer 14

Proactive moves

Adaptive Reactions

Question 15

reactions to unanticipated developes and fresh market conditions

Answer 15

adaptive

Question 16

moves to improve the company’s financial performance and secure a competitive edge

Answer 16

proactive

Question 17

Management’s action plan for running the company is its proactive

Answer 17

deliberate strategy

Question 18

What are failed deliberate strategies?

Answer 18

abandoned strategy elements

Question 19

What are unplanned, reactive adjustsments that come from shifts in preferences, technology, or market opportunities

Answer 19

emergent strategy

Question 20

What is the comination of deliberated planned elements and unplanned emergent elements?

Answer 20

Realized strategies

Question 21

What are the three tests of a winning strategy?

Answer 21

How well does the strategy fit the company’s situation
Is the strategy helping the company achieve a sustainable competitive advantage?
Is the strategy producing good company performance?

Question 22

What are two metrics used in judging strategies performance?

Answer 22

1. Gains in profitability and financial strength

2. Advances in the company’s competitive strength and market standing.

Question 23

How well a company performs is directly attributable to the:

Answer 23

1. Caliber of its strategy

2. proficiency with which the strategy is carried out.