Previous Midterm pt 2

Question 1

What is a value proposition?

Answer 1

The most significant way to differentiate yourself from competitors. It must be important to customers and difficult to copy

Question 2

Why is a value proposition considered a key component of strategy?

Answer 2

Provides a beacon for employees to illuminate what the business is trying to do for customers and the requirements of their roles. It serves as a competitive advantage in the marketplace

Question 3

What is the relationship of the value proposition to other components of strategy?

Answer 3

Value proposition is at the center of business strategy (strategy triangle) made up of goals, product market focus and core activities. Each must be consistent with the value proposition

Question 4

What are goals in terms of business strategy?

Answer 4

Hard and soft goals that express what the business strives to achieve

Question 5

What is product market focus in terms of business strategy?

Answer 5

Determines who you are selling to and what you are selling. Diversification, market penetration, product development, market development

Question 6

What was Porter Airlines value proposition?

Answer 6

Porter’s generic value proposition is a best cost provider strategy. They perform differentiation by extending their focuses of service, speed, and convenience to their customers over the entire airport experience due to their essential ownership of it. Additionally, they have adopted the core activities of budget airlines like Southwest in order to reduce their costs. They still maintain a premium image but according to lecture slides you can still get a premium product price under this strategy

Question 7

What are core activities?

Answer 7

Primary value-adding activities that a business intends to perform and how it intends to perform them. Critical to effective operation of the business

Question 8

Why are core activities considered a key component of strategy?

Answer 8

The activities provide the business with control over operations, cost structure, capabilities, flexibility, and market impact.

Question 9

What are the core activities of Harlequin’s series publishing?

Answer 9

1. Developing author talent
2. Reading and choosing manuscripts
3. Developing editing guidelines/editing process
4. Refunds program with retailers
5. Promotion/marketing

Question 10

Why are goals considered a key component of strategy?

Answer 10

1. They give your employees a vision to work toward
2. Activities can be judged against goals to determine strategy progress/results
3. Should be a stretch so you are able to expand your capabilities (challenges you)