Week 1

Question 1

What is Strategy?

Answer 1

Strategy is the central, integrated, externally oriented concept of how we will achieve our objectives

Strategy affects how the organisation interacts with strategic and industry environment

Question 2

The Importance of Economic Logic

Answer 2

Willingness to pay(consumers)^
- increased sale expertise
- faster shipping
- easy pick up
- Improved online presence

Willingness to Sell(Suppliers)
- lower operating costs
- vendor showrooms
- better trained staff
- Employee engagement

Question 3

Important lessons of economic logic

Answer 3

1. Companies that excel at creating value focus squarely on increasing WTP and/or decreasing WTS
2. Companies that outperform their peers increase WTP or decrease WTS in ways that are difficult to imitate