MC Quiz 1 Flashcards
Define: Strategy
Actions taken to outperform competitors and achieve superior profits
What are the two outcomes of a strategy?
1) Set company apart from rivals
2) Stake market position that’s not crowded w / strong competitors
Define: Competitive Advantage (2 takes)
Providing buyers with superior value compared to rivals
Offers same value at lower cost to firm
Define: Sustainable Competitive Advantage
Maintaining competitive advantage despite rival efforts to match or pass
What are 5 ways to Sustainable Competitive Advantage
1) Low Cost Provider Strategy
2) Broad Differentiation Strategy
3) Focused Low Cost Strategy
4) Focused Differentiation Strategy
5) Best Cost Provider Strategy
Define: Low Cost Provider Strategy
Cost based advantage over rivals
Define: Broad Differentiation Strategy
Differentiate the company’s products/ services from that of rivals; while appealing to an array of customers
Define: Focused Low Cost Strategy
Concentrating on a narrow buyer segment or market niche and outperforming rivals by having lower costs & being able to serve niche members at a lower price
Define: Focused Differentiation Strategy
Concentrates on a narrow buyer segment and outcompeting rivals by offering buyer customized attributes that meet their specific needs/ taste better than rivals.
Define: Best Cost Provider Strategy
Giving customers more value for the money by satisfying the expectations of product/ attributes/ features, AND beating price expectations
What is the equation for a Realized Strategy?
What is a Realized Strategy aka?
Proactive + Reactive = Realized Strategy
aka. Current Strategy
Define: Proactive Strategy
What is it aka?
Planned initiatives to improve the company’s financial performance/ secure competitive edge.
aka. Deliberate strategy
Define: Deliberate strategy
What is it aka?
Planned initiatives to improve the company’s financial performance/ secure competitive edge.
aka. Proactive Strategy
Define: Reactive strategy
What is it aka?
Responses to unanticipated developments and fresh market conditions
aka. Emergent Strategy
Define: Emergent Strategy
What is it aka?
Responses to unanticipated developments and fresh market conditions
aka. Reactive strategy
What are the two aspects of the business model?
1) Customer Value Proposition
2) Profit Formula
Define: Customer Value Proposition
How to meet the needs @ the right price. Customer’s interest.
Define: Profit Formula
Approach to determine cost structure and acceptable profits. Firm’s shares.
What are the 3 tests to determine a winning strategy? Describe.
1) Fit Test- Does it fit the company’s situation? Internally? Externally? Is it dynamic?
2) Competitive Advantage Test - Does it help maintain competitive advantage?
3) The Performance Test- Is a profit being made? How does the company compare in the industry market?
What is the Good Management formula?
Good Management = Good Strategy + Good Execution
Define: Strategic Vision
Company’s long term direction. Where they are going.
Define: Mission Statement
Scope and purpose of the present company. Who we are, what we do, and why we are here.
Define: Core Values
The values that guide the pursuit of the mission & vision, and the expectations of conduct used to achieve these.
Define: Setting Objectives
Measures performance | tracks progress
