Business Strategy and Financial Performance Quiz

Calculates the percentage change in a value (e.g., revenue, employees) between two periods. Helps understand growth or decline.

Analyzing performance based on external factors (like pandemics) vs internal factors (like poor management). External factors are less critical as they are often uncontrollable.

Temporary conditions (e.g., pandemics) allow for recovery, while permanent conditions require adapting strategies for long-term success.

Comparing net income to equity, a measure of profitability, indicates the company's return on investment for shareholders.

A key activity for businesses to track and analyze their performance, measuring success by achieving their goals.

A long-term plan outlining objectives, a unique approach, and the actions needed to achieve them.

Specific, one-off actions to achieve short-term goals. They are immediate solutions, but don't guarantee long-term success.

A company's ability to offer something unique or better than competitors, giving it a privileged position in the market.

A competitive advantage that is temporary and requires constant adaptation due to changing market conditions.

A strategic planning model that outlines the process from defining long-term objectives to evaluating results, including feedback loops.

A critique of Andrews' model by Mintzberg, arguing that strategies can be more complex and not always follow a linear path.

The ability to quickly adapt to changes in the environment, often through innovation or responsiveness.

The ability of buyers to influence the pricing and conditions of products or services they purchase.

When a customer represents a significant portion of a company's revenue, they have more influence.

If buyers have many choices and can easily switch suppliers without additional costs, their power increases.

The costs associated with changing suppliers. Lower costs mean buyers have more power.

The resources used by a company in their operations, including physical, financial, human, and intangible assets.

The skills and abilities a company uses to manage and utilize its resources effectively, leading to strategic success.

Focuses on the company's internal strengths, analyzing its valuable, rare, inimitable, and non-substitutable resources and capabilities.

Resources that are essential for a company to create value and achieve its goals.

Resources that are not widely available to competitors, giving a company a competitive advantage.

A strategy that emerges during implementation, based on real-world experiences and adjustments to the initial plan.

Decisions made by a company operating in multiple industries, covering aspects like portfolio management and resource allocation.

A specific strategy designed for each individual business within a corporation, considering its products, customers, and competition.

The ability of a company to outperform its competitors consistently over a long period, often driven by effective strategies and insights into the market.

Decisions made at the corporate level concerning the overall direction of the company, including areas of operation and diversification.

The act of expanding a company's operations into new industries or businesses.

Factors that contribute to a company's profitability, including its strategy, market positioning, and operational efficiency.

Strategic choices about where to operate (industries/sectors) and how to compete within those chosen markets.

A strategy that is flexible and adaptable to changing circumstances, allowing for adjustments based on real-world experiences.