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Business Policy & Strategy Study Guide

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Business Policy and Strategy – Study Guide: Unit 1
Material from McGraw Hill website – Chapters 1 & 2
Chapter 1
What Is Strategy and Why Is It Important?

Learning Objectives - After studying this chapter, you should be able to:

LO 1. | Understand why every company needs a sound strategy to compete successfully, manage the conduct of its business, and strengthen its prospects for long-term success. | LO 2. | Develop an awareness of the four most dependable strategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. | LO 3. | Understand that a company's strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company's strategy. | LO 4. | Learn why it is important for a company to have a viable business model that outlines the company's customer value proposition and its profit formula. | LO 5. | Learn the three tests of a winning strategy. |

Key Points:
The tasks of crafting and executing company strategies are the heart and soul of managing a business enterprise and winning in the marketplace. The key points to take away from this chapter include the following: 1. A company's strategy is the game plan management is using to stake out a market position, conduct its operations, attract and please customers, compete successfully, and achieve the desired performance targets. 2. The central thrust of a company's strategy is undertaking moves to build and strengthen the company's long-term competitive position and financial performance by competing differently from rivals and gaining a sustainable competitive advantage over them. 3. A company achieves a sustainable competitive advantage when it can meet customer needs more effectively or efficiently than rivals and when the basis for this is durable, despite the best efforts of...

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