Exam 1: What Is Business Strategy?

_____ can be best defined as when an organization generates higher profits compared to its rivals.

Which of the following statements about risks is true?

A group of four people wants to start an office supply chain.They realize that if their company has to function well, they must set the primary aim for which the company has entered that particular business.This aim will help the company function in an organized manner and provide the staff with a focus to meet their goals.Which of the following does this scenario depict?

Thomas is an important figure at Seasons Inc.All of the company's functions, acquisitions, marketing strategies, and business development plans need to partially receive approval from Thomas.This is due to the fact that Thomas owns 20% of Seasons Inc.In this scenario, Thomas is a _____.

Define business strategy and the four strategic choices it involves.

The management of Neptune Inc.creates a definite plan of action that will surely create profits for the company.It allocates and sectionalizes its machinery and personnel.The main office is moved to a prime location that helps attract customers and facilitates competitive development.This plan of action helps Neptune Inc.retain its competitive advantage and has also grow as a company.Which of the following terms does this scenario best illustrate?

The board of directors of White Corp.meets to analyze the company's competencies and scope for improvement.It also examines whether White Corp.has been able to meet its potential customers' requirements.The board of directors of White Corp.is involved in a(n) _____.

The executives at Purple Inc.hold a meeting where they decide the best way to showcase their products.They have a brainstorming session to identify the best geographical areas to conduct business that will bring them maximum profits.They also identify their competitors and decide whether they would be able to withstand top companies selling similar products.The executives at Purple Inc.are discussing a(n) _____.

The owners of Carpo Inc., a watch company, also own a steel company and a leather goods manufacturing company.This relieves them from expenses that they would have to bear, if they had to rely on outside sources for the raw materials needed to make their watches.This enables the company to produce watches at a much lesser cost than other companies in the industry.This scenario best illustrates a _____.

Sweetmeats Inc., a deli, produces its own grains, such as corn, wheat, rice, and oats.The employees create different types of breads without having to buy the grains from other sources.This has helped them sell their bread items to customers at much lower prices than other neighboring delis.This scenario best illustrates a(n) _____.

Explain the significance of internal analysis.

The managers at Spring Hotels want to find out how their competitor, Crimson Valley Hotels, consistently outdoes them.Spring Hotels have the same facilities and equipment as Crimson Valley Hotels, but each month its efforts to reach the benchmark set by Crimson Valley Hotels fails.This is because Crimson Valley has elements such as great location, beautiful architectural design, and customer-friendly employees that create an edge over other companies in its industry.Which of the following does this scenario exemplify?

The Mykari Publishing House invested in buying high-end machinery that allowed its newspapers to be printed at twice the speed of average printing machines.The executives of the company stated that this would increase the company's profit margin by 12% as opposed to the usual 7 to 8% that it makes annually.When the finances of the company were tallied this year, it was found that the profits increased to about 19%.This scenario best illustrates _____.

Which of the following statements best describes the term internal analysis?

What is the next step in the strategic management process that a company should take after identifying prospective markets?

Appetit Corp.is a famous deli in the metropolitan city of Atika.The company became popular because of its consistency in the quality of bread it provided and its creativity in adding unique elements to create different flavors.One of Appetit's products is an infusion of peanut butter and barbeque sauce filled in a bun.Appetit Corp.also engages its customers in contests that ask them to make their own unique variety of bread, which later features among the company's products with the winner's name.All these factors have helped to create unique value that keeps its customers coming back for more.This scenario best illustrates Appetit Corp.'s _____.

Briefly explain SWOT analysis.

Adia and Ali are two business partners who want to set up a company that sells imported sports gear and equipment.In order to make sure that the company makes and retains profit, they must choose an area that is close to where their products have the highest demand.This area should allow them consistently to make profit.In this scenario, Adia and Ali are looking for a _____.

_____ can be best defined as the reason a firm wins with customers or the value proposition it offers to customers, such as a low cost advantage or differentiation advantage.

Returns in excess of what an investor expects from other investments with a similar amount of risk are referred to as _____.