Defining Business Strategy

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Questions and Answers

What is the main focus of the 'blue ocean' strategy mentioned in the text?

Creating new segments/products (correct)

Maintaining the current advantage

Industry disruption

Sustainability initiatives

In Porter's generic strategies, what role does information systems (IS) play in achieving competitive advantage?

Avoiding aggressive moves

Minimizing cost through manual response

Complementing the chosen strategy (correct)

Slowing down the speed of change

How does a firm achieve competitive advantage in a dynamic environment according to the text?

By slowing down changes

By avoiding countermoves

Through speed, agility, and aggressive moves (correct)

By manual response making

What is highly affected by Information Systems (IS) and IT according to the text?

Organizational control and culture variables Signup and view all the answers

Why is it better to get a new advantage before the old one erodes, according to the text?

To achieve disruptive innovation Signup and view all the answers

What does organizational strategy primarily focus on?

Work processes and organizational culture Signup and view all the answers

Which of the following is NOT an example of an IT capability?

Hardware components Signup and view all the answers

What is the primary purpose of an information strategy?

To plan the provision of information services for the organization Signup and view all the answers

Which of the following is NOT included in the list of IT assets?

Project management skills Signup and view all the answers

According to Porter's generic strategies, what are the three ways a business can gain competitive advantage?

Cost leadership, differentiation, and focus Signup and view all the answers

Which of the following is NOT listed as an example of an IT management skill?

Network design and implementation skills Signup and view all the answers

What does the term "spanning skills" refer to in the context of IT capabilities?

The ability to bridge the gap between business and IT domains Signup and view all the answers

What is the primary purpose of a business strategy?

To outline where the business is going and how it will get there Signup and view all the answers

Which of the following is NOT a component of a business strategy according to the text?

The organizational mission Signup and view all the answers

What is the key difference between a business strategy and a business model according to the text?

A business model is a component of a business strategy, while a business strategy includes where the business seeks to go and how it will get there Signup and view all the answers

According to Porter's Generic Strategies Framework, how do businesses build a competitive advantage?

By focusing on cost reduction or differentiation within their products and services Signup and view all the answers

Which of the following is NOT a key component of a business strategy according to the text?

Organizational structure Signup and view all the answers

Study Notes

D'Avenis emphasizes that the goal of advantage should be disruption rather than sustainability, achieved through a series of small steps to get a new advantage before the old one erodes.
It is recommended to adopt a "blue ocean" strategy in order to change the industry and create new segments or products.
Firms achieve competitive advantage through Porter's generic strategies of cost leadership, differentiation, or focus, which is crucial in choosing information systems (IS) to complement the strategy.
Dynamic environment strategies such as speed, agility, and aggressive moves are essential for creating competitive advantage, with IS playing a critical role in adapting to the fast-paced changes.
Organizational strategy involves decisions on organizational design, managerial authority, work processes, and organizational culture, all of which are highly influenced by IS and IT.

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Description

Explore the concept of business strategy by understanding its definition, purpose, and components based on examples from Zappos and Amazon. Learn how a strategy is a coordinated set of actions that help achieve objectives and set limits for an organization's goals.