Unit 8 - Choosing Strategic Direction

Question 1

The strategic direction

Answer 1

Sets out which markets a business will compete in and what products it will offer

Question 2

Strategic choices

Answer 2

Involve deciding the direction in which a business should move and the methods by which it should pursue this plan

Question 3

Strategic position

Answer 3

Refers to how a business is perceived relative to other businesses in the industry

Question 4

Cost leadership strategy

Answer 4

Involves achieving lower costs than rivals in the same industry

Question 5

Differentiation strategy

Answer 5

Involves offering more benefits than rivals in the same industry

Question 6

Competitive advantage

Answer 6

Is a superiority that a business possesses over its rivals that may allow it to achieve objectives, such as increased market share or profitability