1-15 - Service Management Review questions answers: 1....

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1. Briefly define each of the following terms: a)Strategy A company’s answer to “how will we get there?” is its strategy Consists of competitive moves and business approaches used by managers to run the company Management’s “action plan” to: Grow the business Attract and please customers Compete successfully Conduct operations Achieve the targeted levels of organizational performance The How’s That Define a Firm's Strategy How to grow the business How to please customers How to outcompete rivals How to manage each functional Strategy is not a detailed plan or program of instructions; it is ‘ a unifying theme that gives coherence and direction to the actions and decisions of an individual or an organisation’. b) Sustainable competitive advantage A company achieves sustainable competitive advantage when An attractive number of buyers prefer its products/services over those of rivals and The basis for this preference is durable c) Business model A business model addresses “How do we make money in this business?” Is the company’s strategy capable of delivering good bottom-line results? Do the revenue-cost-profit economics of the strategy make good business sense? Look at revenue streams the strategy is expected to produce Look at associated cost structure and potential profit margins Do resulting earnings streams and ROI indicate the strategy has good potential to deliver acceptable profitability? 2. Identify and briefly describe the four most frequently used strategic approaches to achieving a sustainable competitive advantage. Provide examples. Be the industry’s
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This note was uploaded on 05/14/2011 for the course ECON 100 taught by Professor Jia during the Spring '11 term at Aberystwyth University.

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1-15 - Service Management Review questions answers: 1....

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