Strategic Management Final Exam

Customer Value Proposition
You have to provide a product or service to a buyer at a reasonable cost that satisfies their need, and in turn, allows you to make a profit.
What are the 3 business strategies, and include a brief description of what makes them unique?
A) Low-cost: Does not mean the lowest cost, but rather you can make a profit at any price. (Ex. Walmart)
B) Differentiation: Means that you can charge premium (more money) over your competitor based on perceived value (from the eyes of the buyer). (Ex. Apple)
C) Focus: Concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation. The premise is that the needs of the group can be better serviced by focusing entirely on it. (Ex. Selling Lamborghinis)
What question does business strategy ask and what question does corporate strategy ask?
A) Business Strategy: How do we compete in a particular market segment? (Present oriented, everyday)

B) Corporate Strategy: Which industries do we compete in? (Future oriented, 3-5 years)

What are the objectives of Management, Marketing, Operations, and Finance?
A) Management: The objective of management is to ensure the survival of the firm within its competitive environment.

B) Marketing: The objective of the marketing function is to maximize market share.

C) Operations: The objective of the operations function is to increase productivity.

D) Finance: The objective of finance is to maximize shareholders wealth.

What are the four cornerstones of the College of Business and what does each one mean to you? Hint…you see it all over the 3rd floor of Bate.
A) Think: Means to plan your goals, what you can do for others, and decide what kind of difference you can make.

B) Value: Prioritize. Setting priorities helps establish what is important which leads to more successful accomplishments.

C) Communicate: Means to communicate with others such as peers, alumni, and those in need. We have much knowledge to learn from one another.

D) Lead: Means to set an example. Being a leader open paths for those who are not so fortunate. Leading opens doors we thought could not be possible.