strategy

Question 1

strategy

Answer 1

plan of action that develops a business competitive advantage; achieved by doing different things and doing things differently

Question 2

cost leadership vs. differentiation

Answer 2

differentiation: deliver distinctive value - “do different things”
cost leadership: drive down costs - “do things differently”

Question 3

generic strategies

Answer 3

strategies that can be applied to any size or form of business (cost leadership/differentiation)

broad or narrow; 1. cost leadership 2. focused low cost 3. broad differentiation 4. focused differentiation

Question 4

economic logic

Answer 4

how firm makes money above its cost of capital

Question 5

focused differentiation

Answer 5

marketing of a differentiated product to a narrow market

Question 6

best cost provider

Answer 6

hybrid of low cost provider and differentiation strategies, considered to be suboptimal for most companies

Question 7

cost leadership

Answer 7

focus on minimizing costs, often results using product price as competitive edge

Question 8

focused low cost

Answer 8

low cost, narrow focused market; focus on specific segment such as buyer segment or geographic segment

Question 9

staging and pacing

Answer 9

sequence and speed of strategic moves

Question 10

organic growth

Answer 10

growth rate of company excluding takeovers, acquisitions, mergers

Question 11

vehicles

Answer 11

how a company will achieve its objectives

Question 12

arenas

Answer 12

where firm will be active and with how much emphasis

Question 13

strategy diamond

Answer 13

framework for checking and communicating a strategy; economic logic/arenas/staging/vehicles/differentiators

Question 14

economies of scale

Answer 14

making things in large quantity, making it to scale is more cheaper (more production = drive costs down)

Question 15

economies of scope

Answer 15

cost advantages a business enjoys due to larger range of operations