BUS 478 Chapter 6: Business-level strategy and the industry environment

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taupeferret299

3 Mar 2012

School

Simon Fraser University

Department

Business Administration

Course

BUS 478

Professor

Larry Wosk

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Document Summary

Chapter 6: business-level strategy and the industry environment. Overview: once strategic managers create a successful business strategy, they need to continually formulate and implement business-level strategies to sustain their competitive advantage overtime. Here we examine how companies in fragmented industries can develop new kinds of business-level strategies and consider challenges in developing a sustained competitive advantage. Strategies in fragmented industries: a fragmented industry is one composed of a large number of small and medium sized companies (e. g. restaurant, legal services). They are characterized by love barriers to entry. For some fragmented industries, the focused business model will be most profitable as they can specialize by customer group, customer need, geographic region others will pursue a cost leadership or the sales revenue enhancing advantage of differentiation. Some of these companies like burger king, wal-mart, macdonald become chains. Chaining: a strategy that establishes a network of linked merchandising outlets that act as a single organization.

Related Questions

The difference between a company's strategy and a company's business model is that

A)a company's strategy is the plan for achieving strategic objectives while its business model is the plan for achieving financial objectives.

B)the strategy concerns how to compete successfully and the business model concerns how to operate efficiently.

C)a company's strategy is management's game plan for realizing the strategic vision whereas a company's business model is the game plan for accomplishing the business purpose or mission.

D)strategy relates broadly to a company's competitive moves and business approaches (regardless of the financial outcomes it produces) while the term business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from a profit perspective.

E)a company's strategy concerns how to please customers while its business model concerns how to please shareholders