1. What are the three criteria for determining whether a company has a winning strategy?

2. Based on your experiences as a coffee consumer, does Starbuck’s strategy (as described in Illustration Capsule 1.1 – Starbuck’s Strategy in the Coffeehouse Market on p. 6) seem to set it apart from rivals? Does the strategy seem to be keyed to a cost-based advantage, differentiating features, serving the unique needs of a niche, or some combination of these? What is there about Starbuck’s strategy that can lead to sustainable competitive advantage?

3. Elements of Wal-Mart’s strategy have evolved in meaningful ways since the company’s founding in 1962. Prepare a one- to two-page report that discusses how its strategy has evolved after reviewing all of the links at Wal-Mart’s About Us page, which can be found at https://corporate.walmart.com/our-story . Your report should also assess how well Wal-Mart’s strategy passes the three tests of a winning strategy.

4. Should a company’s strategy be tightly connected to its quest for competitive advantage? Why or why not? What difference does it makes whether a company has a sustainable competitive advantage or not?

5. Good strategy + good strategy execution = good management. True or false? Justify and explain your answer.

6. What determines whether a company’s strategy is “ethical?” Why should a company care where its strategy can pass the test of moral scrutiny so long as each of its strategic actions fall within the bounds of what is considered legal?