Question

6. The term strategy can be defined as: a. A company’s market share, which allows it to outperform competition. b. A coordinated deployment of a firm’s resources to achieve competitive advantage. c. The sum total of a company’s financial, organizational, physical and human resources. d. All of the above.

Answer 1

Answer:

The correct answer is:

A coordinated deployment of a firm’s resources to achieve competitive advantage. (b)

Explanation:

The goal of every business is to maximize profit, hence, business strategy is paramount in achieving this, and it is a combination of all the decisions taken, and actions implemented to achieve business goals and to gain a competitive advantage in the market. From this definition, it is therefore noted that business strategies are effectively drawn up at the beginning of the business year, because it is like a roadmap for the business, and implemented throughout the period, although, it can also change depending on the condition of the business environment. Note also that business strategy is different from the business plan, while business plans sets the goals of the business, business strategy states how to achieve these goals.

Answer 2

Answer:

A coordinated deployment of a firm’s resources to achieve competitive advantage.

Explanation:

The term strategy can be defined as a coordinated deployment of a firm’s resources to achieve competitive advantage. It is a long-term plan of action that is focused on using a firm's available resources to achieve set objectives and goals, which includes dominating the market, meeting customer's demands, expanding the business, etc.

The executive management team ensures that their business strategy is in tandem with the aim, objectives vision and mission. A good business strategy is a continuous process that should function as a roadmap or guide to achieve competitive advantage, sustained profitability, growth and development of an organization.

A business strategy can be classified into various categories, such as product strategy, marketing strategy, growth strategy etc.