Question

1. Which of the following is not one of the elements of a company’s business model.

   		Customer value proposition.
   		Performance.
   		Profit formula.

2 points   

QUESTION 2

1. According to the textbook, Rolex and Louis Vuitton are following a broad differentiation strategy.

   		True.
   		False.

2 points   

QUESTION 3

1. A realized strategy is a combination of deliberate planned elements and unplanned emergent elements.

   		True.
   		False.

2 points   

QUESTION 4

1. A company’s strategy explains why the company matters in the market by specifying an approach to creating superior value for customers.

   		True.
   		False.

2 points   

QUESTION 5

1. According to the textbook, which of the following key elements (tactics) does Starbucks not use to execute its differentiation strategy?

   		Commit to corporate responsibility.
   		Emphasis on store ambience to elevate customer experience.
   		Purchase a wide variety of coffee beans.
   		Train “baristas” to serve a wide range of specialty coffee drinks.

2 points   

QUESTION 6

1. According to the textbook, Target is following a best cost strategy.

   		True.
   		False.

2 points   

QUESTION 7

1. Which of the following is not one of the three tests of a winning strategy?

   		The strategy produces good company performance.
   		The strategy helps the company achieve a sustainable competitive advantage.
   		The strategy fits the company’s situation.
   		The strategy chooses the best entry vehicle.

2 points   

QUESTION 8

1. A company achieves sustainable competitive advantage when an attractively large number of buyers develop a durable preference for its products or services over the offerings of competitors.

   		True.
   		False.

2 points   

QUESTION 9

1. The evolving nature of a company’s strategy means it is not a onetime event but is always a work in progress.

   		True.
   		False.

2 points   

QUESTION 10

1. A profit formula consists of revenue generation, cost structure and profit margin.

   		True.
   		False.

Answer 1

Question 1. Option b - performance.

Explanation: A business model is simply a plan of a company on how it will generate revenues and profits. It's key elements are:

I). Customer value proposition - A company should know which goods or services provided by the company is most valuable among the customers.

2). Profit: A company model should include it's potential expenses and revenue collection over time. A company should know at what point in future it's revenue will exceed expenses. So that the company can invest accordingly.

However, performance is not one of the element in a company's business model.