Karlo Dave Paler BSA 3rd year

STRATEGIC MANAGEMENT

Exercise 1

1.
It essential for a company to have a viable business model that outlines the
company's customer value proposition and its profit formula because
a company's business model sets forth the idea for how the strategies of the
management will create value for the customers, while at the same time generate
revenues sufficient to cover costs and realize a profit customer value proposition
or a plan that satisfies customer wants and needs at a price customers will
consider good value profit formula which is a plan for a cost structure that will
enable the company to deliver the customer value proposition profitably.

2. What makes the company’s goods and services superior to all of customer’s
choice is because of achieving sustainable competitive advantage. Strategies
work for any businesses, country or individual in a competitive environment.

Exercise 3:

The goodness of Fit test

The company’s situation is well matched to a good strategy both the

internal and external factors and its own aspiration and capabilities.

The competitive advantage test

A good strategy leads to a sustainable competitive advantage. The bigger

the competitive edge that strategy helps build, the more powerful and effective it is.

The performance test

Good strategy boosts company performance. There are 2 kinds of

performance improvements which are the most telling: gains in profitability and gains in
the company’s long term business strength and competitive position.