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

question 30

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 (which may or may not lead to profitability) 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 earn satisfactory profits and returns on investment.
• E) a company's strategy concerns how to please customers while its business model concerns how to please shareholders.

Appreciate the methodologies used in psychological research and their impact on the validity of outcomes.

Understand the principles of supply chain management and the impact of supply chain decisions on the profitability and efficiency of businesses.

Assess the benefits and challenges of various supply chain contracts, including buyback or returns contracts, revenue-sharing contracts, quantity flexibility contracts, and quantity discount contracts.

Calculate optimal order quantities and expected profit for different retail scenarios.

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Definitions:

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed, variable, and incidental costs.

Location Decision

The process of choosing a geographical location for a company's operations, considering factors like cost, logistics, and market access.

Geographic Areas

Distinctive locations or regions defined for purposes of analysis, management, or marketing.

Lowest Cost Solution

A strategy or approach that focuses on minimizing costs while achieving the required level of quality or performance.