WEEK 1 t0 10 study guide for BUSINESS M BMGT3001S

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Week 1: 1. A company’s strategy is the coordinated set of actions that its managers take in order to outperform the company’s competitors and achieve superior profitability 2. Strategy is abou... t competing differently from rivals—doing what competitors don’t do or, even better, doing what they can’t do! 3. A company achieves a competitive advantage when it provides buyers with superior value compared to rival sellers or offers the same value at a lower cost to the firm. The advantage is sustainable if it persists despite the best efforts of compete- tors to match or surpass this advantage. 4. Changing circumstances and ongoing management efforts to improve the strategy cause a company’s strategy to evolve over time—a condition that makes the task of crafting strategy a work in progress, not a one-time event. 5. A company’s strategy is shaped partly by management analysis and choice and partly by the necessity of adapting and learning by doing. 6. A company’s deliberate strategy consists of proactive strategy elements that are planned; its emergent strategy consists of reactive strategy elements that emerge as changing conditions warrant. 7. A strategy cannot be considered ethical just because it involves actions that are legal. To meet the standard of being ethical, a strategy must entail actions and behavior that can pass moral scrutiny in the sense of not being deceitful, unfair or harmful to others, disreputable, or unreasonably damaging to the environment. 8. A company’s business model sets forth the logic for how its strategy will create value for customers and at the same time generate revenues sufficient to cover costs and realize a profit. 9. To pass the fit test, a strategy must exhibit fit along three dimensions: (1) external, (2) internal, and (3) dynamic. 10. A winning strategy must pass three tests: 1. The fit test 2. The competitive advantage test 3. The performance test 11. How well a company performs is directly attributable to the caliber of its strategy and the proficiency with which the strategy is executed. 12. A company’s strategy is its game plan to attract customers, outperform its competitors, and achieve superior profitability. 13. The success of a company’s strategy depends upon competing differently from rivals and gaining a competitive advantage over them. 14. A company achieves a competitive advantage when it provides buyers with superior value compared to rival sellers or produces its products or services more efficiently. The advantage is sustainable if it persists despite the best efforts of competitors to match or surpass this advantage. 15. A company’s strategy typically evolves over time, emerging from a blend of (1) proactive deliberate actions on the part of company managers to improve the strategy and (2) reactive emergent responses to unanticipated developments and fresh market conditions. 16. A company’s business model sets forth the logic for how its strategy will create value for customers and at the same time generate revenues sufficient to cover costs and realize a profit. Thus, it contains two crucial elements: (1) the customer value proposition—a plan for satisfying customer wants and needs at a price customers will consider good value, and (2) the profit formula—a plan for a cost structure that will enable the company to deliver the customer value proposition profitably. These elements are illustrated by the value-price-cost framework. 17. A winning strategy will pass three tests: (1) fit (external, internal, and dynamic consistency), (2) competitive advantage (durable competitive advantage), and (3) performance (outstanding financial and market performance). 18. Ethical strategies must entail actions and behavior that can pass the test of moral scrutiny in the sense of not being deceitful, unfair or harmful to others, disreputable, or unreasonably damaging to the environment. 19. Crafting and executing strategy are core management functions. How well a company performs and the degree of market success it enjoys are directly attributable to the caliber of its strategy and the proficiency with which the strategy is executed. ....................................................................continued..................................................................... [Show More]

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