Lecture 1
● company’s strategy - represents managerial commitment to undertake one set of actions rather than another
● What is a competitive
... [Show More] advantage and why does it matter?
○ when a large number of buyers are drawn to purchase its products/services over a competitor
● What is a sustainable competitive advantage?
○ when basis for buyer preferences for product/service compared to competitors is durable,
despite competitors’ best efforts to nullify/overcome appeal of its offering ● What is a
business model and how does it differ from a company’s strategy?
○ Concerns whether revenues & costs flowing from strategy demonstrate firm can be profitable &
viable
● Customer Value - How firm will satisfy customer needs at a price customers consider a good value. ● Profit
Proposition - How firm will create/deliver customer value in a cost-efficient manner, at a price that produces
enough revenues to cover costs & attractive profits.
● What are the tests of the validity of a company’s profit proposition?
○ Goodness of fit test, competitive advantage test, performance test (must pass all 3)
Lecture 2
● What are the definitions of a strategic vision, vision statement, and mission statement?
○ Strategic Vision - describes route a firm intends to take in developing & strengthening its
business, lays out the firm’s strategic course in preparing for the future.
○ Vision statement - clearly conveys a firm’s long-term direction
○ Mission statement - Briefly describes the present business ●
What are the key differences between them?
○ Strategic vision is forward looking and mission statement is present ●
What are a company’s core values?
○ Beliefs, traits, behavioral norms that firms employees are expected to display when conducting
business
● What are a firm's objectives? What is a stretch objective?
○ Objectives - organizations performance targets - results management wants to achieve
○ Stretch objectives - use compensation incentives to motivate organization members to perform
● What are the key elements of a company’s strategic plan?
○ Strategic vision, business mission, core values
○ Strategic & financial objectives
○ Chosen strategy [Show Less]