1- a. Describe what is means to have a competitive advantage - give an example.

b. Describe why the concept of above-average returns is important - give examples

c. What is the strategic difference between an I/O model company and resource-based model- give examples?

2- a. Describe (with examples) the four activities of the external analysis process

b. Identify the five competitive forces and explain (with examples) how they determine an industry's profit potential.

3- a. Explain the Value Chain concept and give a clear specific example of how it can be used to improve a company's profits

b. What is outsourcing? Give an example of when it is wise to use outsourcing and an example of when it is not.

4- a. List and explain the types of Business-Level Strategies - Give examples of a company used each of the strategies.

b. Explain how customers Who? What? and How? relate to business level strategies.

c. Use the five competitive forces to explain how above average-returns can earned through Cost Leadership and Differentiation strategies.