Chapter 4 Business-Level Strategy
1. Firms' relationships with customers are characterized by three dimensions which
a. Cost, focus, and differentiation.
b. Affiliation, reach, and richness.
c. Supply, demand, and competition.
d. Needs, wan
Busine ss Le ve l Str a te gy
An organization's core competencies should be focused on satisfying customer needs or preferences in order
to achieve above average returns. This is done through Business-level strategies. Bus
Chapter 9: Cooperative Strategy
Cooperative Strategy: A means by which firms collaborate for the purpose of
working together to achieve a shared objective.
o To create value for a customer that exceeds the cost of creating that
o To create a favora
Chapter 6: Corporate-Level Strategy
Corporate-Level Strategy: COMPANYWIDE. Specifies actions a firm takes to
gain a competitive advantage by selecting and managing a group of different
businesses competing in different product markets.
Chapter 3: The Internal Organization
Resources, Capabilities, Core Competencies, and Competitive Advantages
Analyzing the Internal Organization
The Context of Internal Analysis: In todays global economy, some of the
resources that were traditionally crit
Chapter 2: External Environment
Opportunities, Threats, Industry Competition, and Competitor Analysis
The General, Industry, and Competitor Environments
General Environment: Composed of dimensions in the broader society
that influence an industry and the
T O O L S F O R A N A LY Z I N G U N C E R TA I N T Y
o Political/Legal: laws that can affect your strategic
planning; corporate tax
o Socio/Cultural: labor force, more diversity
R E S O U R C E S , C A PA B I L I T I E S , C O R E
C O MP E T E N C I E S, AN D C O MP E T I T I VE
A D VA N TA G E S
ANALYZING THE INTERNAL ENVIRONMENT
Adopt a global mindset.
Consider the value proposition for the
Chapter 8: International Strategy
Identifying International Opportunities
International Strategy: A strategy through which the firm sells its goods or
services outside its domestic market.
Incentives to Use International Strategy
o Extend a products lif
Chapter 5: Competitive Rivalry and Competitive Dynamics
Competitors: Firms operating in the same market, offering similar products, and
targeting similar customers.
Competitive Rivalry: The ongoing set of competitive actions and competitive
Chapter 12: Strategic Leadership
STRATEGIC LEADERSHIP AND STYLE
Strategic Leadership: The ability to anticipate, envision, maintain flexibility, and
empower others to create strategic change as necessary.
Strategic Change: Change brought about as a resu
Chapter 11: Organizational Structure and Controls
ORGANIZATIONAL STRUCTURE AND CONTROLS
o Organizational Structure: Specifies the firms formal reporting
relationships, procedures, controls, and authority and decision-making
Chapter 13: Strategic Entrepreneurship
Strategic Entrepreneurship: The taking of entrepreneurial actions using a strategic
o Identifying opportunities to exploit through innovations is the entrepreneurship
dimension of strategic entrepreneurs
Chapter 4: Business-Level Strategy
Business-Level Strategy: An integrated and coordinated set of commitments
and actions the firm uses to gain a competitive advantage by exploiting core
competencies in specific product markets.
Indicates the choices the
Exam 2 Quiz
BUS 4385: Strategic
1. Which of the following statements best
describes the actions involved in a business-level
A. It is concerned with product diversity in multiple
B. It focuses on selling goods and services ou
Chapter 4 Business-Level Strategy
1. Which of the following statements best describes the actions involved in a business-level
a. It is concerned with product diversity in multiple markets.
b. It focuses on selling goods and services ou
CHAPTER 4: BUSINESS-LEVEL STRATEGY
1. Define business-level strategy.
2. Discuss the relationship between customers and business-level strategies in terms of who, what
3. Explain the differences among business-level strategie
WHAT HAPPENED TO BORDERS?
1,300 large stores
February 2011 declared bankruptcy
KEY STRATEGIC QUESTIONS
Where are we now?
If no changes are made, where will we be in
1, 5, or 10 years?
If we dont like th