Question 1

A company that follows the _____ strategy customizes its offering to a particular niche in order to outsell its rivals.

Accepted Answer

A) focused differentiation 
B) broad low-cost 
C) market standardization 
D) rapid growth 
E) stuck in the middle 
A) focused differentiation 
B) broad low-cost 
C) market standardization 
D) rapid growth 
E) stuck in the middle

Question 2

Which of the following allows a company to lower cost through functional strategy and organization?

Accepted Answer

A) Implementing just-in-time inventory control systems 
B) Customizing the product offering and marketing mix to different market segments 
C) Focusing marketing efforts on brand building and perceived differentiation from rivals 
D) Designing strategies to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world 
E) Adopting rigid manufacturing technologies 
A) Implementing just-in-time inventory control systems 
B) Customizing the product offering and marketing mix to different market segments 
C) Focusing marketing efforts on brand building and perceived differentiation from rivals 
D) Designing strategies to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world 
E) Adopting rigid manufacturing technologies

Question 3

Market segmentation refers to the process of subdividing a market into clearly identifiable groups of customers with similar needs,desires,and demand characteristics.

Accepted Answer

A) True 
 B)False

Question 4

When a company targets a certain segment or niche,and tries to be the low-cost player in that niche,it is pursuing a broad low-cost strategy.

Accepted Answer

A) True 
 B)False

Question 5

A generic business-level strategy is a strategy that gives a company a specific form of competitive position and advantage over its rivals that results in above-average profitability.

Accepted Answer

A) True 
 B)False

Question 6

Actions taken at the functional level should support the business-level strategy,as should the organizational arrangements of the enterprise.

Accepted Answer

A) True 
 B)False

Question 7

Differentiation allows a company to:

Accepted Answer

A) respond to demands of deep price demands from powerful buyers and still make money. 
B) lower its cost structure. 
C) charge a premium price for its good or service. 
D) charge low prices and still make profits. 
E) initiate a price war in order to grow volume and drive its weaker rivals out of the industry. 
A) respond to demands of deep price demands from powerful buyers and still make money. 
B) lower its cost structure. 
C) charge a premium price for its good or service. 
D) charge low prices and still make profits. 
E) initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

Question 8

A focused differentiator has the advantage of:

Accepted Answer

A) selling on non-price factors, such as design or customer service. 
B) producing a large product variety without a large cost penalty. 
C) producing a basic offering that is relatively inexpensive to produce and deliver. 
D) being able to respond to demands for deep price discounts. 
E) being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry. 
A) selling on non-price factors, such as design or customer service. 
B) producing a large product variety without a large cost penalty. 
C) producing a basic offering that is relatively inexpensive to produce and deliver. 
D) being able to respond to demands for deep price discounts. 
E) being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

Question 9

Companies that follow a standardization strategy ignore the many different market segments in an industry and position their products to appeal to the average customer.

Accepted Answer

A) True 
 B)False

Question 10

In commodity markets,competitive advantage goes to the company that has the lowest costs.

Accepted Answer

A) True 
 B)False

Question 11

Focus strategy can be defined as:

Accepted Answer

A) the strategy of merging with an established company in order to gain monopoly over the market. 
B) the strategy a company uses when it decides to allocate the company resources equally among all the marketing segments 
C) the strategy a company uses when it decides to serve a limited number of segments, or just one segment of the market. 
D) the strategy a company uses when it decides to ignore the different needs of different market segments, and produce one standardized product for all the customers. 
E) the strategy of closing down one or more business units in order to minimize the losses. 
A) the strategy of merging with an established company in order to gain monopoly over the market. 
B) the strategy a company uses when it decides to allocate the company resources equally among all the marketing segments 
C) the strategy a company uses when it decides to serve a limited number of segments, or just one segment of the market. 
D) the strategy a company uses when it decides to ignore the different needs of different market segments, and produce one standardized product for all the customers. 
E) the strategy of closing down one or more business units in order to minimize the losses.

Question 12

At The Luxury Hotel in Miami,Florida,three hotel employees serve the needs of each guest.In every room,a guest can summon a chef,a maid,or a valet by pressing a button at his/her bedside.Which generic business-level strategy is The Luxury Hotel utilizing?

Accepted Answer

A) Cost leadership 
B) Differentiation 
C) Vertical integration 
D) Razor and blade 
E) Brand loyalty 
A) Cost leadership 
B) Differentiation 
C) Vertical integration 
D) Razor and blade 
E) Brand loyalty

Question 13

By focusing on a niche,and customizing the offering to that segment,a differentiated company can often outsell differentiated rivals that target a broader market.

Accepted Answer

A) True 
 B)False

Question 14

Jordan's Ice Creams is strategically located near a university.After realizing that most of its customers,who are mostly students,prefer a wide range of flavors,it started offering different combinations of premium flavors,cones,and toppings to create hundreds of extravagant,customized products.Which generic strategy is Jordan pursuing?

Accepted Answer

A) Broad low-cost strategy 
B) Broad differentiation strategy 
C) Focused low-cost strategy 
D) Focused differentiation strategy 
E) Product substitution strategy 
A) Broad low-cost strategy 
B) Broad differentiation strategy 
C) Focused low-cost strategy 
D) Focused differentiation strategy 
E) Product substitution strategy

A company that follows the _____ strategy customizes its offering to a particular niche in order to outsell its rivals.

Which of the following allows a company to lower cost through functional strategy and organization?

Market segmentation refers to the process of subdividing a market into clearly identifiable groups of customers with similar needs,desires,and demand characteristics.

When a company targets a certain segment or niche,and tries to be the low-cost player in that niche,it is pursuing a broad low-cost strategy.

A generic business-level strategy is a strategy that gives a company a specific form of competitive position and advantage over its rivals that results in above-average profitability.

Actions taken at the functional level should support the business-level strategy,as should the organizational arrangements of the enterprise.

Differentiation allows a company to:

A focused differentiator has the advantage of:

Companies that follow a standardization strategy ignore the many different market segments in an industry and position their products to appeal to the average customer.

In commodity markets,competitive advantage goes to the company that has the lowest costs.

Focus strategy can be defined as:

At The Luxury Hotel in Miami,Florida,three hotel employees serve the needs of each guest.In every room,a guest can summon a chef,a maid,or a valet by pressing a button at his/her bedside.Which generic business-level strategy is The Luxury Hotel utilizing?

By focusing on a niche,and customizing the offering to that segment,a differentiated company can often outsell differentiated rivals that target a broader market.

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 that follows the _____ strategy customizes its offering to a particular niche in order to outsell its rivals.

Which of the following allows a company to lower cost through functional strategy and organization?

Market segmentation refers to the process of subdividing a market into clearly identifiable groups of customers with similar needs,desires,and demand characteristics.

When a company targets a certain segment or niche,and tries to be the low-cost player in that niche,it is pursuing a broad low-cost strategy.

A generic business-level strategy is a strategy that gives a company a specific form of competitive position and advantage over its rivals that results in above-average profitability.

Actions taken at the functional level should support the business-level strategy,as should the organizational arrangements of the enterprise.

Differentiation allows a company to:

A focused differentiator has the advantage of:

Companies that follow a standardization strategy ignore the many different market segments in an industry and position their products to appeal to the average customer.

In commodity markets,competitive advantage goes to the company that has the lowest costs.

Focus strategy can be defined as:

At The Luxury Hotel in Miami,Florida,three hotel employees serve the needs of each guest.In every room,a guest can summon a chef,a maid,or a valet by pressing a button at his/her bedside.Which generic business-level strategy is The Luxury Hotel utilizing?

By focusing on a niche,and customizing the offering to that segment,a differentiated company can often outsell differentiated rivals that target a broader market.

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