BUSI 690 – Policy and Strategy in Global Competition
January 18, 2015
Discussion Question 1.1: How is a strategy different from a business model? How is it similar?
Strategy refers to an organization’s “overall efforts to gain and sustain competitive advantage” (Rothaermel, 2013, p. 9). An organization’s business model, on the other hand, “details the [organization’s] competitive tactics and initiatives”, which includes the steps necessary to put the organization’s strategy into action (Rothaermel, 2013, p. 11). The strategy is the theory of how the organization will make money, while the business model is the action necessary to achieve the theoretical strategy (Rothaermel, 2013). …show more content…
Discussion Question 4.1: Why is it important to study the internal resources, capabilities, and activities of firms? What insights can be gained? The firm must study and understand its internal resources, capabilities, and activities in order to be successful. Only through studying and understanding these elements will the firm be able to discover its core competencies (Rothaermel, 2013). A firm’s core competencies are its “unique strengths … that allow a firm to differentiate its products and services