Flashcard on Competitiveness and Business Strategy

Front

What does it mean for Zoey's company to have competitiveness in a business context?

Back

The ability to outperform competitors in selling and supplying goods and services.

Answer explanation

Competitiveness in business refers to the ability to outperform competitors in selling and supplying goods and services, making the first answer the most accurate definition.

Front

What gives Charlotte's coffee shop a competitive advantage?

Back

The leverage a business has over its competitors by offering better value.

Answer explanation

A competitive advantage is the leverage a business has over its competitors by offering better value, which can lead to increased customer loyalty and market share.

Front

Aspects considered before buying a product, such as price, brand reputation, and product features.

Back

Factors that influence a customer's decision to purchase a product.

Answer explanation

Key purchasing criteria are the factors that influence a customer's decision to buy a product. This encompasses various elements, including price, brand reputation, and advertising strategy, but ultimately focuses on customer decision-making.

Front

Ava is shopping for a new laptop. Which of the following is NOT a key purchasing criterion for her? Options: Quality, Price, Variety, Location

Back

Location

Answer explanation

Location is not a key purchasing criterion because it does not directly affect the quality, price, or variety of a product. Buyers typically prioritize these factors over where the product is located.

Front

What is the 8GB RAM requirement considered for Emily's laptop purchase?

Back

A nonnegotiable requirement of the customer.

Answer explanation

An order qualifier is a nonnegotiable requirement of the customer, meaning it must be met for the order to be considered. This distinguishes it from other characteristics that may enhance the offer but are not essential.

Front

What is an order winner in the context of Daniel choosing a smartphone based on battery life?

Back

A characteristic that wins the order.

Answer explanation

An order winner is a characteristic that differentiates a product and makes it more appealing to customers, ultimately leading to winning their order. This aligns with the correct choice.

Front

What is a common trade-off in operations management when deciding between cheaper materials to reduce expenses or investing in higher-quality materials?

Back

Cost and quality

Answer explanation

In operations management, a common trade-off is between cost and quality. Reducing costs often leads to lower quality, while maintaining high quality can increase expenses. Thus, organizations must balance these two factors.

Front

What should Scarlett focus on developing to give her company a strategic edge over competitors?

Back

A resource or capability that provides strategic advantages.

Answer explanation

A core competency is defined as a resource or capability that provides strategic advantages, enabling a company to differentiate itself and achieve competitive success.

Front

Which condition is NOT a core competency?

• It should be rare.
• It should be easy to replicate.
• It should be difficult to imitate.
• It must provide superior value.

Back

It should be easy to replicate.

Answer explanation

A core competency should be rare, difficult to imitate, and provide superior value. If it is easy to replicate, it cannot be considered a core competency, as it would not provide a competitive advantage.

Front

Strategy hierarchy

Back

The broadest level of strategic management.

Answer explanation

The strategy hierarchy refers to the broadest level of strategic management, encompassing various strategies that guide an organization. This choice correctly identifies the overarching framework for strategic planning.