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

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What is strategy? ANSWER consists of the integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. it forms an action plan to attract customers, compete against rivals, grow the business & achieve objectives 4 approaches to building competitive advantage ANSWER cost leadership- competitive advantage arises from a cost structure rivals cannot match (ex: walmart) differentiation- advantage stems from products that provide higher quality, wider selection, attractive styling, technological superiority (ex: mercedes benz) market niche- advantage results by doing a better job than rivals of serving the preference of buyers comprising a narrow market (ex: starbucks) distinct expertisc- advantage arises from developing expertise, resource strengths, & capabilities nol easily imitated by rivals (ex: fedex) 5 major clements of strategy ANSWER arenas- where will we be active? vehicles- how will we get there? differentiators- how will we win? slaging- what will be our timing? economic logic- how will we obtain our returns?