Chapter 1 Questions:
1. What is competitive advantage, and how does it relate to a company’s business model?
Competitive advantage is a business concept that describes the attribute allowing an organization to outperform its competitors. In simple terms, organizations having the competitive advantage will outperform their main rival organizations by offering their customers products, services etc. of greater value compared to that of their rivals. These attributes may include lower prices to the products and services that the organization offers to their customers of better services offered compared to their competing organizations. Only by maintaining the competitive advantage, organizations can attract the potential customers and increase their profitability. In other words, competitive advantage can be maintained only when its profits are greater compared to those of their rival companies.
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Describe the strategic planning model, and who is involved in the strategy-making process
Strategic planning model is a process of establishing a plan for the organizations moving forward. Strategic planning model includes defining strategic policies for the organization, identifying common goals, defining the outputs/outcomes, planning and allocating appropriate resources needed to achieve these coming goals. All executives, managers and employees of the company should be aware of these common goals and strategic direction that the organizational executives have decided.
In lot of organizations, there would be a committee or team in charge of defining the strategic planning model for the organization. This committee or team will usually comprise of higher level management executives who will monitor the implementation of the strategic plan, those who will implement the plan like managers, lower level employees etc. and also those who will be affected by this
1. What is competitive advantage, and how does it relate to a company’s business model?
Competitive advantage is a business concept that describes the attribute allowing an organization to outperform its competitors. In simple terms, organizations having the competitive advantage will outperform their main rival organizations by offering their customers products, services etc. of greater value compared to that of their rivals. These attributes may include lower prices to the products and services that the organization offers to their customers of better services offered compared to their competing organizations. Only by maintaining the competitive advantage, organizations can attract the potential customers and increase their profitability. In other words, competitive advantage can be maintained only when its profits are greater compared to those of their rival companies.
2. …show more content…
Describe the strategic planning model, and who is involved in the strategy-making process
Strategic planning model is a process of establishing a plan for the organizations moving forward. Strategic planning model includes defining strategic policies for the organization, identifying common goals, defining the outputs/outcomes, planning and allocating appropriate resources needed to achieve these coming goals. All executives, managers and employees of the company should be aware of these common goals and strategic direction that the organizational executives have decided.
In lot of organizations, there would be a committee or team in charge of defining the strategic planning model for the organization. This committee or team will usually comprise of higher level management executives who will monitor the implementation of the strategic plan, those who will implement the plan like managers, lower level employees etc. and also those who will be affected by this