Question 1

A company pursuing a focus strategy:

Accepted Answer

A) attempts to serve all market segments. 
B) concentrates on building market share in one market segment. 
C) typically has more resources at its disposal than a differentiator does. 
D) has a greater impact on costs and revenues. 
E) produce different offerings for different segments. 
A) attempts to serve all market segments. 
B) concentrates on building market share in one market segment. 
C) typically has more resources at its disposal than a differentiator does. 
D) has a greater impact on costs and revenues. 
E) produce different offerings for different segments.

Question 2

When a company already has a low-cost structure,it has to give up a lot of differentiation in its product offering to get additional cost reductions.

Accepted Answer

A) True 
 B)False

Question 3

An efficiency frontier shows all of the different positions that a company can adopt with regard to differentiation and cost.

Accepted Answer

A) True 
 B)False

Question 4

Nick,a professional magician,is often invited to perform magic tricks at birthday parties and other social gatherings from across the country.However,he offers his services only to clients who stay in the same city as him.He is also known to charge less than other magicians in the city.Nick is pursuing which generic business strategy?

Accepted Answer

A) Improved services 
B) Right-time marketing 
C) Focused low-cost 
D) Broad low-cost 
E) Deterrence strategy 
A) Improved services 
B) Right-time marketing 
C) Focused low-cost 
D) Broad low-cost 
E) Deterrence strategy

Question 5

Functional strategies to improve differentiation should include:

Accepted Answer

A) product offerings designed to be can be produced and delivered at as low a cost as possible 
B) standardization of the product offering and marketing mix to different market segments. 
C) hiring and employee development strategies designed to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world. 
D) initiation of a price war in order to grow volume and drive its weaker rivals out of the industry. 
E) products that have lower prices to allow a company to erect an economic moat around its business that keeps higher-cost rivals out. 
A) product offerings designed to be can be produced and delivered at as low a cost as possible 
B) standardization of the product offering and marketing mix to different market segments. 
C) hiring and employee development strategies designed to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world. 
D) initiation of a price war in order to grow volume and drive its weaker rivals out of the industry. 
E) products that have lower prices to allow a company to erect an economic moat around its business that keeps higher-cost rivals out.

Question 6

When a company is able to pioneer process innovations that lead to value innovation,it effectively changes the game in an industry and may be able to outperform its rivals for a long period of time.

Accepted Answer

A) True 
 B)False

Question 7

Mike's Eatery,a fast food chain,neither customizes its product offerings nor sells new products based on market segments.Mike's Eatery is pursuing standardization strategy.

Accepted Answer

A) True 
 B)False

Question 8

The generic business-level strategies are cost leadership,differentiation,and mass marketing.

Accepted Answer

A) True 
 B)False

Question 9

The brand loyalty enjoyed by the differentiated company will not always protect it from substitute goods and services.

Accepted Answer

A) True 
 B)False

Question 10

A low-cost company is often best positioned to survive price rivalry in its industry.

Accepted Answer

A) True 
 B)False

Question 11

Cool Looks produces a variety of clothing for various customer groups.Which of the following strategies is the firm most likely pursuing?

Accepted Answer

A) Cost leadership 
B) Differentiation 
C) Product substitution 
D) Focus 
E) Share building 
A) Cost leadership 
B) Differentiation 
C) Product substitution 
D) Focus 
E) Share building

Question 12

Companies that focus on the higher-income or higher-value end of the market will tend to have a higher cost structure.

Accepted Answer

A) True 
 B)False

Question 13

When a company offers a wide variety of products at lower prices than its rivals,it is most likely:

Accepted Answer

A) pursuing a low-cost strategy. 
B) pursuing a differentiation strategy. 
C) pursuing a focus strategy. 
D) pursuing an exit strategy. 
E) pursuing a divestment strategy. 
A) pursuing a low-cost strategy. 
B) pursuing a differentiation strategy. 
C) pursuing a focus strategy. 
D) pursuing an exit strategy. 
E) pursuing a divestment strategy.

Question 14

Which of the following is NOT a main approach to market segmentation?

Accepted Answer

A) Marketing a product targeted toward average or typical customers 
B) Marketing a product to a group of people who are more likely to purchase it 
C) Making customized products to suit the unique requirements of customers 
D) Making products to meet the specific needs of a narrow group of customers 
E) Making one product aimed toward a general, rather than a specific subset of customers 
A) Marketing a product targeted toward average or typical customers 
B) Marketing a product to a group of people who are more likely to purchase it 
C) Making customized products to suit the unique requirements of customers 
D) Making products to meet the specific needs of a narrow group of customers 
E) Making one product aimed toward a general, rather than a specific subset of customers

Question 15

A segmentation strategy requires that a company:

Accepted Answer

A) standardize its products. 
B) offer its products at low costs. 
C) customize its products. 
D) produce one basic offering. 
E) attain high economies of scale by achieving a high volume of sales. 
A) standardize its products. 
B) offer its products at low costs. 
C) customize its products. 
D) produce one basic offering. 
E) attain high economies of scale by achieving a high volume of sales.

Question 16

Companies that successfully differentiate a product often charge _____ prices for them.

Accepted Answer

A) premium 
B) exorbitant 
C) low 
D) average 
E) escalating 
A) premium 
B) exorbitant 
C) low 
D) average 
E) escalating

Question 17

A company that follows a low-cost strategy could reasonably be expected to reduce costs by:

Accepted Answer

A) increasing the number of business processes. 
B) adopting lean production and flexible manufacturing technologies. 
C) implementing first-in-first-out inventory control systems. 
D) taking steps to increase customer churn. 
E) abandoning economies of scale and learning effects. 
A) increasing the number of business processes. 
B) adopting lean production and flexible manufacturing technologies. 
C) implementing first-in-first-out inventory control systems. 
D) taking steps to increase customer churn. 
E) abandoning economies of scale and learning effects.

Question 18

A differentiated product is a product that:

Accepted Answer

A) has a greater resale value than rival products. 
B) provides greater reliability than rival products. 
C) is offered free of cost on purchase of a company's standard product. 
D) always costs more than rival products. 
E) always costs less than rival products. 
A) has a greater resale value than rival products. 
B) provides greater reliability than rival products. 
C) is offered free of cost on purchase of a company's standard product. 
D) always costs more than rival products. 
E) always costs less than rival products.

Question 19

A disadvantage of pursuing a low-cost strategy is that:

Accepted Answer

A) it makes it difficult for firms to customize their product offerings . 
B) price wars make it hard to compete with differentiators. 
C) it costs more than a differentiation strategy because of the necessity of high capital investments. 
D) powerful buyers are a major threat. 
E) it reduces customer retention. 
A) it makes it difficult for firms to customize their product offerings . 
B) price wars make it hard to compete with differentiators. 
C) it costs more than a differentiation strategy because of the necessity of high capital investments. 
D) powerful buyers are a major threat. 
E) it reduces customer retention.

Question 20

Lilly's Beauty Company sells haircare products such as shampoo,conditioner,and hairspray.The company does not sell new or customized products in order to meet the specific needs of certain groups of people.Which of the following approaches is illustrated in this scenario?

Accepted Answer

A) Standardization strategy 
B) Focus strategy 
C) Medium market segmentation 
D) High market segmentation 
E) Focused market segmentation 
A) Standardization strategy 
B) Focus strategy 
C) Medium market segmentation 
D) High market segmentation 
E) Focused market segmentation

A company pursuing a focus strategy:

When a company already has a low-cost structure,it has to give up a lot of differentiation in its product offering to get additional cost reductions.

An efficiency frontier shows all of the different positions that a company can adopt with regard to differentiation and cost.

Functional strategies to improve differentiation should include:

When a company is able to pioneer process innovations that lead to value innovation,it effectively changes the game in an industry and may be able to outperform its rivals for a long period of time.

Mike's Eatery,a fast food chain,neither customizes its product offerings nor sells new products based on market segments.Mike's Eatery is pursuing standardization strategy.

The generic business-level strategies are cost leadership,differentiation,and mass marketing.

The brand loyalty enjoyed by the differentiated company will not always protect it from substitute goods and services.

A low-cost company is often best positioned to survive price rivalry in its industry.

Cool Looks produces a variety of clothing for various customer groups.Which of the following strategies is the firm most likely pursuing?

Companies that focus on the higher-income or higher-value end of the market will tend to have a higher cost structure.

When a company offers a wide variety of products at lower prices than its rivals,it is most likely:

Which of the following is NOT a main approach to market segmentation?

A segmentation strategy requires that a company:

Companies that successfully differentiate a product often charge _____ prices for them.

A company that follows a low-cost strategy could reasonably be expected to reduce costs by:

A differentiated product is a product that:

A disadvantage of pursuing a low-cost strategy is that:

Lilly's Beauty Company sells haircare products such as shampoo,conditioner,and hairspray.The company does not sell new or customized products in order to meet the specific needs of certain groups of people.Which of the following approaches is illustrated in this scenario?

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional Level Strategies

Business Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters

Exam 5: Business Level Strategy

A company pursuing a focus strategy:

When a company already has a low-cost structure,it has to give up a lot of differentiation in its product offering to get additional cost reductions.

An efficiency frontier shows all of the different positions that a company can adopt with regard to differentiation and cost.

Functional strategies to improve differentiation should include:

When a company is able to pioneer process innovations that lead to value innovation,it effectively changes the game in an industry and may be able to outperform its rivals for a long period of time.

Mike's Eatery,a fast food chain,neither customizes its product offerings nor sells new products based on market segments.Mike's Eatery is pursuing standardization strategy.

The generic business-level strategies are cost leadership,differentiation,and mass marketing.

The brand loyalty enjoyed by the differentiated company will not always protect it from substitute goods and services.

A low-cost company is often best positioned to survive price rivalry in its industry.

Cool Looks produces a variety of clothing for various customer groups.Which of the following strategies is the firm most likely pursuing?

Companies that focus on the higher-income or higher-value end of the market will tend to have a higher cost structure.

When a company offers a wide variety of products at lower prices than its rivals,it is most likely:

Which of the following is NOT a main approach to market segmentation?

A segmentation strategy requires that a company:

Companies that successfully differentiate a product often charge _____ prices for them.

A company that follows a low-cost strategy could reasonably be expected to reduce costs by:

A differentiated product is a product that:

A disadvantage of pursuing a low-cost strategy is that:

Lilly's Beauty Company sells haircare products such as shampoo,conditioner,and hairspray.The company does not sell new or customized products in order to meet the specific needs of certain groups of people.Which of the following approaches is illustrated in this scenario?

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional Level Strategies

Business Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters