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The text provides three primary strategic approaches (differentiation, cost, and response) for achieving competitive advantage. Provide an example of each. Support your
choices.

Choose the correct example of differentiation and its explanation below.

A. Starbucks, as it provides the best cheap coffees, including canned, ground, fair trade and organic coffees.

B. Starbucks, as it provides the special atmosphere and aroma of fresh coffee.

C. Hewlett-Packard, as it demonstrates flexibility in both design and volume changes in the volatile world of PC.

D. Hewlett-Packard, as it provides personal computers at the best and cheapest prices.

Which of the following is the purpose or rationale for an organizations existence?

A mission statement is a concise explanation of the organization's reason for existence.

How an organization expects to achieve its missions and goals?

Strategy – How an organization expects to achieve its mission and goals. An action plan designed to achieve the mission.

Which of the following activities takes place most immediately once the mission has been developed?

Which of the following activities takes place most immediately once the mission has been developed? The functional areas develop their supporting missions.

What refers to the creation of a unique advantage over competitors?

Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.