Question 4
(Total 25 marks)
a. Skoda believes that its strategy is to offer affordable cars to middle-aged citizens. Is this
a strategy description? Why (not)?
(10 marks)
b. Discuss three reasons why the corporate profits of a diversified firm may be an
unsuitable measure of the firm’s competitive advantage.
(10 marks)
c. Discuss a firm’s ability to achieve a competitive advantage in terms of the relationship
between the firm’s resources and capabilities, its competitor’s offerings, and customer
needs.
(5 marks)
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