Blue Nile Study Questions

Powerful Essays
Ashesi University College
Competitive Strategy
Course Code: BUSA 405
Semester One: 2010/2011
Marking Scheme
Mid Semester Exams
Lecturers: Anthony Ebow Spio and Robert Ahomka-Lindsay
Section A (40 Marks)

Provide Short and concise answers
1 Explain the term sustainable competitive advantage and why it is so important to a winning business strategy. (5 marks)

Suggested Answer
A company achieves sustainable competitive advantage when an attractive number or buyers prefer its products/services over those of rivals and when the basis for this preference can be maintained over time.

Competitive advantage could stem from offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price.
(3 marks)

Sustainable competitive advantage is necessary for a firm to win in the market place. It is required for a strategy to deliver on strategic and financial objectives (2 marks)

2. Using examples briefly explain and state the importance of each of the following
a) Strategic vision Suggested Answer
Strategic vision represents the destination that management seeks to take a firm. Ford’s vision “A car in every garage”
Importance
Give the organization a sense of direction
Inform company personnel and other stakeholders what management wants its business to look like
Spur company personnel to action
Provide managers with a reference point to
(2.5 marks for explanation and any 2 points mentioned as importance of strategic vision)

b) Strategic mission
Suggested Answer
Strategic mission of a firm focuses on its present business purpose. Strategic mission highlight the present products and services, types of customers served and how it intends to do that.

Examples
Beacon Books: “To inspire and equip business executives and entrepreneurs with essential information and knowledge they require for professional and personal growth”

Google: “To organize the

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