l4. strategy formulation and business-level strategic action

Question 1

concentration of an organization on specific strategic directions to achieve a competitive advantage

Answer 1

strategy focus

Question 2

structured process of creating strategies that align with the company’s vision and external/internal environment

Answer 2

strategic development

Question 3

key elements of strategy focus and development

Answer 3

1. vision and mission statements
2. strategic objectives
3. environmental scanning
4. strategic analysis tools
5. strategy formulation process

Question 4

foundation of strategic intent

Answer 4

vision and mission statement

Question 5

short-term and long-term goals

Answer 5

strategic objectives

Question 6

examples of strategic analysis tools

Answer 6

SWOT analysis, porter’s five forces, value chain analysis

Question 7

process of determining and understanding the specific groups or segments of the market that the business intends to serve

Answer 7

identification of customers

Question 8

steps in customer identification

Answer 8

1. market segmentation
2. target market selection
3. customer profiling
4. needs analysis

Question 9

step in customer identification that involves demographics, psychographics, behavioral, and geographic criteria

Answer 9

market segmentation

Question 10

choosing the most appropriate segments

Answer 10

target market selection

Question 11

creating customer personas

Answer 11

customer profiling

Question 12

understanding customer pain points and preferences

Answer 12

needs analysis

Question 13

importance of customer identification

Answer 13

1. enhances customer satisfaction
2. increases marketing efficiency
3. drives product/service innovation

Question 14

srategy for managing a company’s relationships and interactions with current and potential customers using data analysis and digital tools.

Answer 14

customer relationship management (CRM)

Question 15

components of CRM

Answer 15

operational CRM
analytical CRM
collaborative CRM

Question 16

Automates sales, marketing, and service processes.

Answer 16

operational crm

Question 17

analyzes customer data for decision-making

Answer 17

analytical crm

Question 18

facilitates communication across departments and with customers

Answer 18

collaborative CRM

Question 19

benefits of CRM

Answer 19

customer retention and loyalty
personalized marketing
improved customer service
increased profitability

Question 20

approaches taken by a firm to gain a competitive advantage in a particular market or industry

Answer 20

business-level strategies

Question 21

main types of business-level strategy

Answer 21

1. cost leadership
2. differentiation
3. focused cost leadership
4. focused differentiation
5. integrated strategy

Question 22

Gaining an edge by being the lowest-cost producer.

Answer 22

cost leadership

Question 23

offering unique features that customers value

Answer 23

differentiation

Question 24

targeting a narrow market segment at a low cost

Answer 24

focused cost leadership

Question 25

offering specialized products to a niche market

Answer 25

focused differentiation

Question 26

combining cost efficiency with differentiation

Answer 26

integrated strategy

Question 27

types of strategy

Answer 27

1. corporate level 2. business level 3. functional level

Question 28

type of strategy that focus on overall scope and direction

Answer 28

corporate-level strategies

Question 29

example of corporate-level strategies

Answer 29

diversification into new industries

Question 30

how the firm competes in individual markets

Answer 30

business-level strategies

Question 31

example of business-level strategies

Answer 31

apple using differentiation via product design and innovation

Question 32

specific actions in departments like marketing, production, and finance

Answer 32

functional-level strategies

Question 33

example of functional-level strategies

Answer 33

marketing launching a digital ad campaign to support new product lines

Question 34

strategies that are universally applicable in various industries and help businesses position themselves effectively in the market

Answer 34

universal business-level strategies

Question 35

risks associated with cost leadership strategy

Answer 35

1. technological disruption 2. price wars 3. perception of low quality 4. imitation by competitors

Question 36

competitors adopting new cost-saving technologies

Answer 36

technological disruption

Question 37

aggressive pricing may erode profit margins

Answer 37

price wars

Question 38

customers may view low cost as poor quality

Answer 38

perception of low quality

Question 39

diminishes the uniqueness of cost advantage

Answer 39

imitation by competitors

Question 40

A strategy where firms seek to offer products or services that are perceived as unique in the industry.

Answer 40

product differentiation strategy

Question 41

differentiation bases

Answer 41

1. product design and features 2. brand image 3. customer service 4. innovation

Question 42

advantages of product differentiation strat

Answer 42

1. brand loyalty 2. less price sensitivity 3. higher profit margins

Question 43

risk involved in differentiation strategy

Answer 43

1. high costs 2. imitation 3. changing customer preferences 4. over-differentiation

Question 44

strategy targeting a specific, well-defined market segment with customized offerings

Answer 44

segmented focus strategy

Question 45

benefits of segmented focus strat

Answer 45

strong brand loyalty in niche markets limited competition

Question 46

risks of segmented focus strat

Answer 46

market segment may shrink larger firms may target the same niche

Question 47

hybrid strategy combining low cost with product differentiation to achieve competitive advantage

Answer 47

integrated cost leadership and differentiation strategy

Question 48

implementation reqs of integrated cost leadership and differentiation strat

Answer 48

1. flexible manufacturing 2. efficient value chain 3. strong organizational culture

Question 49

advantages of Integrated Cost Leadership and Differentiation Strategy

Answer 49

broader market appeal cost efficiency with added value

Question 50

risks of Integrated Cost Leadership and Differentiation Strategy

Answer 50

confusion in value proposition operational complexity risk of being stuck in the middle

Question 51

Strategic connections between firms and their stakeholders (e.g., suppliers, partners, customers) supported by robust information systems

Answer 51

network linkages and information systems

Question 52

types of network linkages

Answer 52

vertical (with suppliers and distributors) horizontal (with competitors, alliances)

Question 53

role of information systems

Answer 53

data collection and analytics supply chain coordination real-time decision-making

Question 54

benefits of network linkages and information systems

Answer 54

improved operational efficiency enhanced innovation and collaboration faster response to market changes