Business Policy and Strategy – exam

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  • 1. What do you think are the sources of sustained superior profitability?
  • 2. When is a company’s competitive advantage most likely to endure over time?
  • 3. Why is it important to understand the drivers of profitability, as measured by the return on invested capital?
  • 4. Evaluate the accuracy of the following statement: Formal strategic planning systems are irrelevant for firms competing in high-technology industries where the pace of change is so rapid that plans are routinely made obsolete by unforeseen events.
  • 5. Under what environmental conditions are price wars most likely to occur in an industry? What are the implications of price wars for a company? How should a company try to deal with the threat of a price war?
  • 6. Is it possible for a company to be the lowest cost producer in its industry and simultaneously have an output that is most valued by customers?
  • 7. Which is more important in explaining the success and failure of companies: strategizing or luck?
  • 8. From what perspective might innovation be called the single most important building block of competitive advantage?
  • 9. What role can top management play in helping a company achieve superior efficiency, quality, innovation, and responsiveness to customers?
  • 10. What are the strengths of formal strategic planning? What are its weaknesses?

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