The Difference Between a Company's Strategy and a Company's Business

question 1

Multiple Choice

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

• A) a company's strategy is management's game plan for achieving strategic objectives while its business model is management's game 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 while its business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint of being able to generate revenues sufficient to cover costs and realize a profit.
• E) a company's strategy is concerned with how to please customers while its business model is concerned with how to please shareholders.

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Definitions:

Restructuring

The process of organizing a company, operation, or structure in a new way to increase efficiency or improve performance, which often includes changes in business model, operations, or strategy.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology that prioritizes human needs in a pyramid.

Esteem Need

According to Maslow's hierarchy of needs, the psychological necessity for respect, self-esteem, and respect from others.

Self-Actualization

The realization of one's full potential, aspirations, and abilities, representing the highest level of psychological development.