The difference between a company's strategy and a company's business model is that
A) a company's strategy is management's game plan for achieving strategic objectives while its business model is management's game plan for achieving financial objectives.
B) the strategy concerns how to compete successfully and the business model concerns how to operate efficiently.
C) a company's strategy is management's game plan for realizing the strategic vision whereas a company's business model is the game plan for accomplishing the business purpose or mission.
D) strategy relates broadly to a company's competitive moves and business approaches (which may or may not lead to profitability) while its business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint of being able to earn satisfactory profits and returns on investment.
E) a company's strategy concerns how to please customers while its business model concerns how to please shareholders.

Question

Quizplus · Accepted Answer

A company's strategy is focused on its competitive moves and business approaches, while its business model is focused on the financial aspects such as revenue and cost generation. Therefore, D is the best choice. A, B, C, and E are incorrect because they either do not fully capture the distinction between strategy and business model or they are overly simplistic in their characterization of these terms.

The Difference Between a Company's Strategy and a Company's Business