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Multiple Question Examination

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Author’s Name

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Due Date
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Q1. How have recent changes in technology affected the four major business-level

strategies, overall cost, differentiation, focused, and hybrid or combination strategies? How

does this relate to the creation of a sustainable competitive advantage for a firm?

The introduction of advanced technology to the field of business has come with its

positive and negative effects on business levels. For instance, Artificial intelligence in the field

of business has been used to execute different commands. An example of artificial intelligence is

machine learning which has hastened the process of large amounts of data in a business setting.

With the introduction of AI to business, overall low cost has been affected and firms are

witnessed to increase the pricing of products due to the high installation costs of the AI machine.

Consequently, differentiation has been affected, where industries that have more

advanced AI machines, boast of much differentiation hence a stringer market strategy. With

advanced technological application n, a business set up, for instance, the Chinese medical sector

has invested in more advanced technological medical practices since the hit of the Nobel

coronavirus (Mishra $ Yadav, 2021). Chinese medical hospitals have developed 5G robotics

which helps in medicine distribution to patients, hence china has been able to stand out in their

medical field.

Competitive advantage refers to the ability of a firm to produce a more quality service or

product than the competitive company’s. when there is a strong competitive advantage, there will

be the creation of high-profit margins. With advanced technology applications in business firms,

there will be a difference in the quality of service emanated from competitor companies thus

customers would have a preference to the company which boats of the best service delivery and

also quality products.

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Q.2 If a firm is successful domestically, it is likely to be successful internationally?

Why or why not

Business firms have varying success rates within the area of practice. Success rates may

depend on varied factors. Such factors also may determine whether a firm is successful locally,

internationally, or both. For a firm to be successful, there must be other forces acting upon rather

than just the local and international market. For a firm to realize its full success, there must be a

well-formulated business plan, business model, and best business strategies.

Such strategies will determine several issues, for instance, strategies would help in

determining the appropriate way for the farm to price their goods concerning the other firm’s

product prices. Strategies would also assist in determining the range of products produced by

other firms (Memon et. al 2021). A successful domestic firm, therefore, stipulates that the farm

put in place the right strategies to determine the demands of the product, and also the consumer

services, for instance, after-sale services. A successful firm domestically will have therefore met

all the necessary strategies, followed business laws and regulations, and work in line with the

government policy.

All the strategies in place, therefore, provides a firm with a strong base to venture into the

international economic market but most essential is knowing the customer’s preferences for

example, whatever work in the United States America will not necessarily be the best option in

China. An example in a similar situation is; Best Buy electronic merchandise in the united states

boasts of a highly successful sale of electronics in the U.S, however, its venture in china has

since not produced positive results. About their failure, Best Buy never considered the vast

electronic markets in China and the cost-conscious nature of their products.

Q3. Describe in detail the following;

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Value Chain

A value chain is a business model that describes the range of activities needed to create a

service or a product in a business plan. For instance, companies that involve in the production of

goods use a value chain model to assess the steps that are necessary for a product to pass to its

completion a market-friendly good ready for consumption (Samiee 4 Chirapanda, 2019). The

value chain, therefore, ensures that a product is of high quality and satisfies the preferences of a

customer. Value chain analysis in a company is thus performed by the evaluation of each step

required in the processing of products.

Sustainability

Sustainability is a business approach where company strategies long time values which

would then determine how the organization operates to its full potential. Sustainability is built on

the concept that strategic sustainability values help in enhancing a business’ longevity.

Shared value

These are the business policies that ensure the competitive level of a business is at its

peak and thus enhancing the economic state of the region the business is situated. Shared value,

therefore, is implemented in a company to enhance the relationship between the company and

the environment in which it operates.

Stakeholder

a stakeholder is a party who has positive interests in a company. a stakeholder has an

effective influence on the business and at the same time, a stakeholder can also be affected by the

business operation itself. Stakeholders in a business can therefore include; customers, employees,

governments, investors, local communities, suppliers, and vendors.

Transient advantage
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Transient advantages are business strategies that are laid to accept that competitive

advantages that a business may be enjoying are never a long-lasting achievement. Transient

advantage, therefore, focuses on the innovation of new strategies which would enable the

business to continue enjoying the competitive advantage.

Q4. What determines the level of competitive intensity in an industry?

To determine the level of competitiveness, Michael E. Porter designed a model which has

been in use since its approval. Porter’s Five Forces is a business model which analyzes and

points out the five forces which normally determine every industry’s weakness and strength. The

main importance of the Five forces is to identify the industrial structure which assists in

determining the corporate strategy. Porter’s Five forces have been used in every segment of the

economy helping in the understanding of the competition level within the industry. Porter’s

model also helps in enhancing a company’s long-term profitability.

The porters model helps in explaining the reason why most industries can sustain the

varied levels of profitability. In the model, Porter discusses five forces that play the role of

shaping all the markets and industries across the world. The five forces are essentially used to

determine the level of competition intensity, feasibility, and profitability of the industrial market

(Faraoukhi et. al 2020). Inclusive of the five forces are; Competition in the industry, the potential

of the new entrance in the industry, power of supplies, power of customers, and the threat of

substitute products. About competition in the industry, the number of competitors and their

ability to undercut a company determines the level of competitiveness.

Consequently, the potential of the new entrance in the industry has the essence that, the

less time and cost it requires a competitor to infiltrate into a company’s market and be an

effective competitor, the more a well stable company could face weakness. The power of
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supplies also addresses how easily suppliers can influence the applicable cost of inputs in the

company. the fewer the number of suppliers, the more a company can depend on the supplier

(Paul and Mas, 2020). The power of customers is one of the forces that influence the rate at

which a product is priced. Consequently, the threat of substitutes can cause the power of a

company to be weakened hence, the limited product substitutes the higher the company’s power.

Q6. A. Can a firm achieve competitive advantage and thereby strategic

competitiveness without acting ethically? Explain your answer

With the continuous expansion of the economy, businesses experience the demand to be

able to adapt to the global strategic standards to ensure their competitive nature is not

compromised. Business ethics are with time assuming strategic roles as firms are constantly

seeking to remain competitive in the economic market. Ethics is the competitive advantage of the

global market and it has been the trend for companies to realize their competitive advantage.

Ethics in business has been increasingly adopted in the recent economic scale. With ethics

anchored in the business operations, staff members in the business are equipped with integrity,

honesty, and hard work.

Business ethics assists businesses in focusing on long-term goals rather than focusing on

short-term objectives and goals therefore with businesses encompassing longevity and

sustainability, shareholder value would be enhanced immensely consequently attracting business

investors (Gallardo et al, 2019). A firm can achieve a competitive advantage only through ethical

laws. Without acting ethically, a business company may fail to achieve its competitive advantage

goals thereby unable to realize customer trust. For instance, in a recent study conducted by

Arthur Andersen, business ethics have a positive influence on realized profits, business

productivity, and growth.

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The advantage of establishing a strong ethical culture in a business environment is

important in building the reputation of the business, growth, and development of the business.

Ethical practices hence assist in attracting customers to the business. To comprehend, a business

has to act ethically to effectively achieve a competitive advantage in the economic market.
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References

Paul, J., & Mas, E. (2020). Toward a 7-P framework for international marketing. Journal of

Strategic Marketing, 28(8), 681-701.

Samiee, S., & Chirapanda, S. (2019). International marketing strategy in emerging-market

exporting firms. Journal of International Marketing, 27(1), 20-37.

Gallardo-Vázquez, D., Valdez-Juárez, L. E., & Lizcano-Álvarez, J. L. (2019). Corporate Social

Responsibility and Intellectual Capital: Sources of competitiveness and legitimacy in

organizations’ management practices. Sustainability, 11(20), 5843.

Mishra, P., & Yadav, M. (2021). Environmental capabilities, proactive environmental strategy

and competitive advantage: A natural-resource-based view of firms operating in

India. Journal of Cleaner Production, 291, 125249.

Faroukhi, A. Z., El Alaoui, I., Gahi, Y., & Amine, A. (2020). Big data monetization throughout

Big Data Value Chain: a comprehensive review. Journal of Big Data, 7(1), 1-22.

Memon, A. A., Afshan, G., & Memon, A. A. (2021). War for Competitive Advantage–porter's

Generic Strategies Past–Present–Future’–A Review. Available at SSRN 3846056.