GENERAL SANTOS DOCTORS' MEDICAL SCHOOL FOUNDATION INC.

Bulaong Subdivision, Barangay West, General Santos City 9500

Tel No.: (083) 302-3507, Telefax No.: (083) 552-9793

Name: Isip, Louriebe Trisha Y. Date: 01/30/24

Section: BSN-2B

IS101 QUIZ 2 (Chapter 2)

ESSAY. Discuss and explain briefly the following in 2-3 paragraphs and average of 100
words. No copy and paste from the websites. (10 points each)

1. Why is strategic management important to the entrepreneur to run his/her

business to have advantage to his/her competitors?

Strategic management plays a crucial role in helping entrepreneurs

achieve a competitive advantage in the market. It involves the formulation and
implementation of strategies that enable a business to allocate resources
efficiently, make informed decisions, and anticipate market trends. By taking a
proactive approach, businesses can offer superior value to their customers and
stay ahead of their competitors.

Strategic management is not a one-time activity but a continuous process

requiring entrepreneurs to regularly review and adjust their strategies. By doing
so, entrepreneurs can ensure that their businesses remain relevant and
competitive in the ever-changing marketplace. Strategic management provides
overall direction to an enterprise and involves specifying the organization's
objectives, developing policies and plans to achieve those objectives, and then
allocating resources to implement the plans.

For example, a coffee shop owner, Lourie, conducts an environmental

analysis to understand the local coffee market, identify trends, and understand
customer preferences. Based on this analysis, Lourie formulates a strategy to
differentiate her coffee shop from competitors by focusing on offering a unique,
sustainable coffee experience. It is a strategic management, where Lourie is
looking at the big picture and determining the long-term direction of the business.
2. As we all know Japan products are very good in terms of quality. Your
small business is a distributor of Japan products in the Philippines. How
you can use the Cost Leadership strategy in selling your products?

For a small business that distributes Japan products in the Philippines,

implementing a cost leadership strategy can provide a significant competitive
advantage. This approach involves minimizing operational costs to offer products
at lower prices than competitors, without compromising quality. To achieve this,
the business can negotiate favorable terms with suppliers, optimize inventory
management, and streamline distribution channels. By doing so, the company
can pass on cost savings to customers, making their products more attractive in
the market.

Moreover, the company can leverage Japan's reputation for quality to

differentiate its products from cheaper alternatives. This strategy allows the
business to maintain a premium image while still offering competitive prices. By
highlighting the superior quality of Japan products, the company can attract
cost-conscious customers who are willing to pay a little extra for better quality.
Over time, this approach can help the business gain market share from
competitors and establish itself as a leading distributor of Japan products in the
Philippines.

In summary, a cost leadership strategy can be highly effective for a small

business distributing Japan products in the Philippines. By reducing operational
costs, offering competitive prices, and highlighting the quality of Japan products,
the business can attract cost-conscious customers and differentiate itself from
competitors. This approach can help the business gain market share and
establish a strong competitive advantage in the industry.