BUSA 4980 Exam 1 with Questions and Answers, Exams of Business Administration

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Strategy ANSWER an action plan (initiatives, commitments), involving resource allocation an integrated and coordinated set of actions designed to exploit core competencies and gain a competitive advantage must consist of a central, integrated, externally-oricnted concept of how the business will achieve its objectives 5 elements: arena, vehicles, differentiators, staging and economic logic Strategic Competitiveness ANSWER involves formulating and implementing a value- creating strategy a strategy is competitive when it creates value for consumers often entails a unique market position requires a core competence ie resources that are valuable, rare, costly to imitate and non- substitutable Competitive Advantage ANSWER results when buyers have a lasting preference for the company's products or services over rivals' rivals are unable to duplicate or find too costly to imilate the value offered to consumers achieved through lower costs or differentiation (ie unique features) Above-Average Returns ANSWER returns in excess of what investor expects in comparison to other investments with similar risk main metric = performance (profitability, financial strength, and market standing) other metrics — goodness to fit, competitive advantage. consistency and risk