Chapter 1

Question 1

How a business operates can be initially assessed with (3)

Answer 1

• commercial endeavours
• employee interaction
• organizational efficiency and structure

Question 2

company-centric business system

Answer 2

activities
resources
partners
cost structure
portfolio of products and services

Question 3

market centric business system

Answer 3

• available customer segments and opportunity assessments
• positioning
• value proposition development
• revenue model development

Question 4

occurs when a company possesses capabilities that enable it to perform critical activities better than its rivals

Answer 4

competitive advantage

Question 5

business growth and profitability =

Answer 5

well directed and positioned strategy

+ efficient and effective business model execution

Question 6

businesses must pay attention to environmental impacts as consumers and stakeholders become more aware of impacts

Answer 6

corporate social responsibility

Question 7

involves inspiring your workforce (talent) to pursue a shared goal, beyond ordinary expectations

Answer 7

visionary leadership

Question 8

refers to the development of plans and decisions that will guide the direction of the firm and determine long term performance

Answer 8

strategy

Question 9

refers to the immediate term actions which.a firm executed in order to meet the short term objectives set forth in the current planning cycle

Answer 9

tactics

Question 10

the “bottom line” result an organization has realized for an identified, immediate period of time

Answer 10

profit

Question 11

measures how well a company is using its resources over a specified period of time to generate earnings relative to its competitors

Answer 11

profitability