Question 1

Which of the following statements best define strategy?

1)	It describes how an organization can create value for its customers while differentiating itself from its competitors.

2)	It is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

3)	It is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors.

4)	It describes how an organization motivates its employees to work for more hours without any increase in their wages.

Question 2

Which of the following statements best define a product differentiation strategy?

1)	It describes how an organization can increase customer base by differentiating its' product prices from its competitors.

2)	It is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

3)	It describes how an organization can decrease product prices by differentiating its' raw materials from its competitors.

4)	It is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors.

Question 3

Which of the following focuses on these five factors: competitors, potential entrants to the market, equivalent products, bargaining power of customers, and bargaining power of suppliers?

1) balanced scorecard

2) product differentiation analysis

3) industry analysis

4) business process reengineering