competitive advantage can best be described as quizlet

Premiums that are rarely paid to acquire a business are expensive. D. All of the above E. Only a few services can be saved, stored, resold, or returned. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. 3 “An organization's ability to learn and translate that learning into action rapidly, is the ultimate competitive advantage.” "If you don't have a competitive advantage, don't compete. What best describes resource partitioning? Firm resources and sustained competitive advantage. 1  While the term is commonly used for businesses, the strategies work for any organization, country, or individual in a competitive environment. Managers can build sustainable competitive advantage by adopting the following measures. Award: 1.00 point 6. Strategic management is a continuous process that appraises the business and industries in which the organization is involved, its competitors; and fixes goals to meet all the present and future potential competitors and then reassesses each strategy. B) what sets an organization apart. If A was absolutely better at producing both X and Y compared to B then there would be no advantage in A trading with B. correct incorrect. VRIO analysis is at the core of the resource-based view of the firm. Strategic Management Journal, 5, 171–180. 5. Porter argues that basic factors do not generate competitive advantage as they can be obtained by any company. This allows the firm to charge a premium price, reflecting its higher value creation. 5. 4. The Danger of Relying on Technology. Kenneth Arrow. Focus is the easiest and least costly of the three strategies for most companies. ANS: F Competing interests can complicate the management process; therefore the separation of business interests from family interests would be best as each organization has separate purposes.. Manufacturing involves the activities and processes used in: 3. Competitive advantage is defined as the ability to stay ahead of present or potential competition. recognize a firm's best competitive position b Understand a firm's values and how they affect decision-making c Understand opportunities within an industry to improve a firm's competitive position d … b. a significant capability and may be the root of all competitive advantage. The generic strategy of focus rests on the choice of a narrow competitive scope within an industry. Firms strive for sustainable competitive advantage, financial performance that consistently outperforms their industry peers.The goal is easy to state, but hard to achieve. Wernerfelt, B. c. not a primary source of competitive advantage. (1991). 31. Depends on the collective competitive advantages of the nation’s firms. If this firm is able to dominate its competitors for prolonged periods of time, the company is said to have a sustained competitive advantage. A sustainable competitive advantage is not achieved through operational effectiveness alone. A virtual company strategy uses networks to link to other firms so that a company can use the capabilities of other companies to build, market, and distribute products and services. A company's core competencies become the nucleus of its competitive advantage. Managers can build sustainable competitive advantage by adopting the following measures. The field of production has, therefore certain areas where the firm can have core competency and, therefore, competitive advantage. Competitive advantage can best be described as: A. increased efficiency. Specific marketing tactics are then formed from the intersection of these four factors. A resource-based view of the firm. This quickly becomes unprofitable, particularly if the competition have lower costs. Information systems facilitate business models based on large networks of users or subscribers that take advantage of network economics. Since achieving and maintaining a competitive advantage is the primary aim of competitive strategies, managers should undertake measures to sustain competitive advantage once they are achieved. 4. McDonald’s restaurants are mainly run through independent franchisees in more than 100 countries. b. competitive advantage c. competitive profile d. strategic plan 23. The world is so dynamic, with new products and new competitors rising seemingly overnight, that truly sustainable advantage might seem like an impossibility. Answer: Intended strategies can best be described as a firm's theories of how to gain a competitive advantage that are developed as a result of the strategic management process. ANS: F Competing interests can complicate the management process; therefore the separation of business interests from family interests would be best as each organization has separate purposes.. 2. Companies that are operationally effective perform similar tasks better than their competitors. According to Michael Porter, there are three different way to sustain a competitive advantage. The residents of the town of Segonon have initiated a campaign to stop the … VRIO analysis is at the core of the resource-based view of the firm. Health and medical research council and the agriculture and resource management council of australia and of new zealand (armcanz) may be used by food businesses and authorised officers for guidance concerning what constitutes acceptable water. a. a set of activities that will assure a temporary advantage and average returns for the firm. Burger bomb is a new hamburger restaurant. Here, her past experience with the brand prompts her to make the choice. C. a strength of the organization. Correct ; correct its internal weaknesses and resource deficiencies. a promotional theme b. a comparative differentiation c. a competitive advantage d. a unique selling proposition ANS: C A competitive advantage is a set of unique product features perceived by the target market as significant and superior to the competition. One major source of competitive advantage for McD is its extensive global presence. framework for analyzing the internal environment of firms and their performance based on the assumption that firms can be meaningfully depicted as a bundle of resources and capabilities; the resource-based view seeks to explain the qualities that a resource or capability must possess in order to be a source of sustainable competitive advantage. Premiums that are rarely paid to acquire a business are expensive. Competitive Advantage. It is the reason behind brand loyalty, and why you prefer one product or service over another. There are three different types of competitive advantages that companies can actually use. They are cost, product/service differentiation, and niche strategies. A competitive advantage is what makes an entity's goods or services superior to all of a customer's other choices. d. centred in a firm's top management team. In fact, cost leadership is one of the main strategies proposed by Porter, as we saw in the beginning of the post. The two broad strategies for building a competitive advantage are the ____ strategies. We would recommend that you use a blended approach though, as both negotiation parties locking horns in a competitive battle can result in a spiraling deadlock. Magic Lures's sales promotional theme c. Magic Lures's one-to-one marketing advantage d. Magic Lures's marketing differentiator ANS: A A competitive advantage is a set of unique features of a company and its products perceived by the target market as significant and superior to the competition. JL Electronics can charge a premium price on its televisions. Mgt 301 Connect Questions Chapter 1-3. True False Under its co-founder and longtime CEO, Steve Jobs, Apple was one of the few successful tech companies using a top-down strategic planning process. a.ii. A SWOT analysis can be described best as. Strengths: factors that give an edge for the company over its competitors. Any information system—EIS, OIS, TPS, KMS—that changes the goals, processes, products, or environmental relationships to help an or-ganization gain a competitive advantage or reduce a competitive disadvantage is a strategic information system. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. Strategic … The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others. Kenneth Arrow. D. intangible resources. Nearly everything can be considered as competitive edge, e.g. Any information system—EIS, OIS, TPS, KMS—that changes the goals, processes, products, or environmental relationships to help an or-ganization gain a competitive advantage or reduce a competitive disadvantage is a strategic information system. They enjoy the feeling of most consumers like getting a theft of an upscale product with the attributes of the fans. c. A firm achieves a competitive advantage by adding value to its products and services or reducing its own costs more effectively than its rivals in the industry. -Firms that can freely enter or exit the market. cost-based and differentiation-based. One advantage of a family business is that there is no need to separate the business interests from the family interests. Supply chain management is the handling of the entire production flow of a good or service — starting from the raw components all the way to delivering the final product to the consumer.. What are the elements of supply chain management? In fact, cost leadership is one of the main strategies proposed by Porter, as we saw in the beginning of the post. A sustainable competitive advantage is not achieved through operational effectiveness alone. 4.1/5 (90 Views . The Porter’s diamond model or the Porter Diamond Theory of National Advantage, is an economic model developed by Michale Porter. B. that can sustain long-term competitive advantages within defined market segments. When a hostile firm buys a large block of outstanding target company stock and the target company management feels that a tender. AACSB: Analytical Thinking 41) The level of direct competition in the fastfood industry can best be described as A) low because of the numerous firms in the industry and the slowing growth rate. Magic Lures's competitive advantage b. There are two basic types of competitive advantage: cost leadership and differentiation. Competitive advantage can best be described as A) increased efficiency. C. a strength of the organization. The laws became more restrictive, the country lost many locally produced resources and products, and the distribution of wealth became inequitable. offer is impending, they offer to buy the stock back from the hostile company at a higher price than the unfriendly company paid for it. B. provide every customer with goods and services that are high in quality and low in cost. B. (1984). Game theory is the study of the ways in which interacting choices of economic agents produce outcomes with respect to the preferences (or utilities) of those agents, where the outcomes in question might have been intended by none of the agents.The meaning of this statement will not be clear to the non-expert until each of the italicized words and phrases has been explained and featured in … 1  While the term is commonly used for businesses, the strategies work for any organization, country, or individual in a competitive environment. D. minimize the difference between value creation and cost. True False Under its co-founder and longtime CEO, Steve Jobs, Apple was one of the few successful tech companies using a top-down strategic planning process. A company's core competencies become the nucleus of its competitive advantage. B) corporate-level strategies. Simply put, a firm that outperforms its competitors has a competitive advantage. A firm is said to gain a competitive advantage when it can A. exceed its own previous performances. Describe the risks of using each of the business-level strategies. This is a set of conditions that best suit a company’s characteristics and make it most efficient relative to others. 3. c. Barney, J. Kenneth Arrow, The Concept of Corporate Strategy (Homewood, IL: Irwin, 1971), 28. Wernerfelt, B. The highest valued alternative that must be given up to engage in an activity. Aesthetics. 1. https://strategicmanagementinsight.com/tools/strategic-management-planning For example, through the innovative use of IT and other strategic innovations, the world’s largest retailer Wal-Mart was able to These variable elements are based upon the analysis of the “four P’s” of marketing: product, price, place, and promotion. The relationship between core competencies and competitive advantage is best described by which statement? This competitive strategy exceeds customer expectations for both cost and features. Requirement for sustained competitive advantage. 13. Since customer service can be an important source of competitive advantage, progressive managers A. work hard to establish and maintain high standards of customer service. An oligopoly environment can be described as an environment A. with few players who do not directly compete against one another. Competitive advantage exists when a particular company consistently outperforms other companies in the same industry. An oligopoly environment can be described as an environment A. with few players who do not directly compete against one another. But from a competitive standpoint, the problem with operational effectiveness is that best practices are easily emulated. Rothaermel [2] pointed out that the company, which has a competitive advantage, performs financially much better than other companies in the industry or better than the industry average. Instead of trying out the flavors offered by competing brands, Anne selects a different flavor offered by Yoplait. Competitive advantage is not something that can be vested rather it can only be earned through The definition of marketing mix can best be described as the combination of elements used to promote products or services. Threats: unfavorable situations which can negatively affect the business. A competitive advantage is a capability or position that allows you to outperform competitors. The Boston Consulting Group Matrix (BCG Matrix), also referred to as the product portfolio matrix, is a business planning tool used to evaluate the strategic position of a firm’s brand portfolio. B. provide products similar to its competitors, but at lower prices. 5 Basic principles of competitive advantage. For an advantage to be sustained, your competitors must not be able to duplicate it. Competitive advantage and financial gain are not the same because some advantages are more interesting than others. A competitive advantage is interesting when one has insights into ways to increase its value. Having comparative advantage can be one element that contributes to a company's competitive advantage. When a hostile firm buys a large block of outstanding target company stock and the target company management feels that a tender. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. match up well with the firm's financial resources and competitive capabilities, offer the best growth and profitability, and present the most potential for competitive advantage. C. perform at the same level as that of its competitors. B. what sets an organization apart. The company can face first-time conflicts if it is not well prepared with a sound method to retain competitive advantage. ANS: F Core competencies are the capabilities that provide a competitive advantage. For a company to attain a sustained competitive advantage, its human resource practices must be difficult to copy or imitate. Recall that even a V _ _ O resource can be considered a strength under a traditional SWOT analysis. C. a strength of the organization. In other cases, having a more visually appearing product will increase your value among customers. 13. A resource-based view of the firm. Strengthening a company's competitive advantage strengthens its core competencies. easily reproduced by competitor firms, which allows them to obtain a competitive advantage. A firm can achieve competitive advantage either by supplying an identical product or service at lower cost or by supplying a product or service that is differentiated in such a way that the customer is willing to pay a premium price. However, holding comparative advantage doesn't always guarantee competitive advantage. 7. AACSB: Analytical Thinking 41) The level of direct competition in the fastfood industry can best be described as A) low because of the numerous firms in the industry and the slowing growth rate. A firm that has a sustained competitive advantage in its domestic market A. can expect to have a sustained competitive advantage in all of the countries in which it competes. A firm is described as having a competitive advantage when it successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do. 24 Votes) Perfectly Competitive Market. We would recommend that you use a blended approach though, as both negotiation parties locking horns in a competitive battle can result in a spiraling deadlock. What is supply in supply chain management? JL Electronics can charge a premium price on its televisions. As an example of an advanced factor, MIT produces graduates with very high computing skills. What is the difference between comparative […] -Goods offered by the various sellers that are largely the same, this means buyers and sellers must accept the price determined by the market. B. what sets an organization apart. Resource partitioning is the division of limited resources by species to help avoid competition in an ecological niche . Strengths: factors that give an edge for the company over its competitors. This is typically done by evaluating strengths and weaknesses of competitors and seeing where you can fill in the gap or step up and improve. 2. Which of the following statements is true about rivalry? A competitive advantage is what makes an entity's goods or services superior to all of a customer's other choices. A firm is described as having a competitive advantage when it successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do. A firm can achieve competitive advantage either by supplying an identical product or service at lower cost or by supplying a product or service that is differentiated in such a way that the customer is willing to pay a premium price. 1. Best describes a situation where there are two countries, A and B, and potentially two goods which can be traded, X and Y. McDonald's Competitive Advantage. LECTURE NOTES Business-Level Strategy - This opening section introduces the five basic approaches that combine the scope of an organization’s activities in the market (broad or narrow) with the primary source of its competitive advantage (low cost or uniqueness). Competition can be an effective defense or counter balance to use against negotiators with a competitive conflict profile. Comp Advantages held by nation tend to drive development of new firms and industries with these same comp advantage. B. provide every customer with goods and services that are high in quality and low in cost. This decision is a central component of the firm's competitive strategy. The company can face first-time conflicts if it is not well prepared with a sound method to retain competitive advantage. 4. These variable elements are based upon the analysis of the “four P’s” of marketing: product, price, place, and promotion. In this scenario, TrueCandy Inc.'s loss of competitive advantage can be primarily attributed to _____. ganizational structure, functional area, or support system as described in the previous chapter. It describes how the choice of competitive scope, or the range of a firm's activities, can play a powerful role in determining competitive advantage. 31. A firm is described as having a competitive advantage when it successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do. The world is so dynamic, with new products and new competitors rising seemingly overnight, that truly sustainable advantage might seem like an impossibility. b. a significant capability and may be the root of all competitive advantage. A firm is described as having a competitive advantage when it successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do. false. Serendipity describes a new product idea resulting from deliberate search activities. As we will see later in the chapter, companies may hold one of three perspectives on workplace diversity. The field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation is known as _________. Weaknesses: factors that can be harmful if used against the firm by its competitors. B. what sets an organization apart. A good example of an outcome-oriented culture may be Best Buy Co. Inc. Having a culture emphasizing sales performance, Best Buy tallies revenues and other relevant figures daily by department. ganizational structure, functional area, or support system as described in the previous chapter. LECTURE NOTES Business-Level Strategy - This opening section introduces the five basic approaches that combine the scope of an organization’s activities in the market (broad or narrow) with the primary source of its competitive advantage (low cost or uniqueness). A firm that has a sustained competitive advantage in its domestic market A. can expect to have a sustained competitive advantage in all of the countries in which it competes. 27. Has: -Many buyers and sellers in the market. Which of the following statements is true about rivalry? Total quality, benchmarking, and business process reengineering are ways that companies can be operationally effective. Questions Answers Which of the following best describes a strategist's main a Understand answers to the three fundamental questions in order to challenge? Focusing on building blocks of competitive advantages. The ability of an individual firm or country to produce a good or service at a lower opportunity cost than competitors. For once, she decides to try a different flavored yogurt. Brand Equity In marketing, brand equity refers to the value of a brand and is … C) a strength of the organization. Very simply, the term competitive advantage means the positioning a firm takes in relation to other firms in its industry. An implication of this is that: 27. For an automobile manufacturing company, labor, money, and energy are examples of _____. Competitive advantage is a set of product or company qualities considered to be superior to others in the target market. 2. Strategic Management Journal, 5, 171–180. Actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously are known as A) business-level strategies. a. a set of activities that will assure a temporary advantage and average returns for the firm. A … It is considered the basis for profitability in a competitive market. (1984). The company can face first-time conflicts if it is not well prepared with a sound method to retain competitive advantage. In other cases, having a more visually appearing product will increase your value among customers. Simply put, a firm that outperforms its competitors has a competitive advantage. help defend it against the external threats to its well-being. In a cost leadership strategy, the objective is to become the lowest-cost producer. This article highlights the distinctions between design and design thinking and how the latter, if executed properly and strategically, can impact business outcomes and result in real competitive advantages. a- The difference between a firm's return on assets and its return on sales b- A firm's ability to earn a persistently higher profit margin than its rivals c- A firm's ability to earn a profit rate whi… "-By Jack Welch John Francis "Jack" Welch, Jr. is an American businessman and author. If this firm is able to dominate its competitors for prolonged periods of time, the company is said to have a sustained competitive advantage. Design-led companies such as Apple, Pepsi, Procter & Gamble and SAP have outperformed the S&P 500 by an extraordinary 211%. 7. Focusing on building blocks of competitive advantages. This quickly becomes unprofitable, particularly if the competition have lower costs. D) intangible resources. ANS: F ... 27. Cost advantage can also be had through lower administration expenses and we see firms seeking this by avoiding the cost of a corporate headquarters, existing instead as a virtual entity to avoid expensive leases. Competitive advantage can best be described as: A. increased efficiency. TrueCandy Inc., a confectionery manufacturing company, lost its competitive advantage when its strategy of placing kiosks at prominent locations throughout the state was followed by most of its competitors. factors that allow a company to produce goods or services better or more cheaply than its rivals. 1. The residents of the town of Segonon have initiated a campaign to stop the production of aerated beverages by Sip Drink Inc. Guide and Best Practices. Definition of Sustainable Competitive Advantage. Firm resources and sustained competitive advantage. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. B. what sets an organization apart. Wernerfelt, B. When the strong dictatorial rule in Backenstein unexpectedly collapsed due to the shocking death of the royal family in an explosion, the nation's economy experienced drastic changes. Anne is a frequent purchaser of Yoplait strawberry yogurt. AARP is the preeminent leader in advocacy for the 50+ age group. Transcribed image text: CASE # 1 REBUILDING COMPETITIVE ADVANTAGE As the U.S. economy moves from recession to recovery, businesses are obsessively focused on risk management, cost containment, supply chain sustainability, resource efficiency, and maintaining their competitive edge.

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