Question 1

What are the limitations of generic strategies?

Accepted Answer

It is important to recognize that examin

Question 2

In the case of focus differentiation, a company lacks the ability to charge high prices.

Accepted Answer

A) True 
 B)False

Question 3

Firms that are able to offer both low prices and unique features that customers find desirable are said to be stuck in the middle.

Accepted Answer

A) True 
 B)False

Question 4

A real estate company provides housing services to retired individuals. It basically helps individuals above the age of sixty to search for houses with peaceful surroundings. The fact that the company provides housing services to retired individuals is an example of a(n):

Accepted Answer

A)  adaptive strategy. 
B)  pull strategy. 
C)  focused cost leadership strategy. 
D)  cost leadership strategy. 
E)  focused differentiation strategy. 
A)  adaptive strategy. 
B)  pull strategy. 
C)  focused cost leadership strategy. 
D)  cost leadership strategy. 
E)  focused differentiation strategy.

Question 5

The best cost strategy is difficult to execute in part because creating unique features and communicating them generally raises a firm's costs of doing business.

Accepted Answer

A) True 
 B)False

Question 6

A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors offer in the market. Which of the statements would hold true for such a strategy?

Accepted Answer

A)  The company invests heavily in market research. 
B)  The company makes an effort to offer unique features to the customers. 
C)  The company emphasizes efficiency. 
D)  The company must spend substantial funds on research and development. 
E)  The company encourages expensive advertising campaigns. 
A)  The company invests heavily in market research. 
B)  The company makes an effort to offer unique features to the customers. 
C)  The company emphasizes efficiency. 
D)  The company must spend substantial funds on research and development. 
E)  The company encourages expensive advertising campaigns.

Question 7

The two competitive dimensions of business level strategies are:

Accepted Answer

A)  Differentiation; Economy of Scale 
B)  Competitive Advantage; Focused Cost Leadership 
C)  Cost Leadership; Scope of Operations 
D)  Competitive Advantage; Economy of Scale 
E)  Competitive Advantage; Scope of Operations 
A)  Differentiation; Economy of Scale 
B)  Competitive Advantage; Focused Cost Leadership 
C)  Cost Leadership; Scope of Operations 
D)  Competitive Advantage; Economy of Scale 
E)  Competitive Advantage; Scope of Operations

Question 8

Jeff wants to open a new coffee shop in his town where there are already two other coffee shops. In order to attract more customers, James decides to charge a lower price for each cup of coffee than what his competitors charge. This is an example of a(n) _____ strategy.

Accepted Answer

A)  established 
B)  generic 
C)  marked 
D)  general 
E)  standard 
A)  established 
B)  generic 
C)  marked 
D)  general 
E)  standard

Question 9

A company that manufactures laundry detergent makes use of salespeople for door-to-door selling to directly sell the products to the customers. The company allows customers to make payments for the products within a period of one month. This is an example of a(n):

Accepted Answer

A)  focused differentiation strategy. 
B)  focused cost leadership strategy. 
C)  cost leadership strategy. 
D)  pull strategy. 
E)  adaptive strategy. 
A)  focused differentiation strategy. 
B)  focused cost leadership strategy. 
C)  cost leadership strategy. 
D)  pull strategy. 
E)  adaptive strategy.

Question 10

A firm following a(n) _____ strategy offers products or services with acceptable quality and features to a broad set of customers at a low price.

Accepted Answer

A)  pull 
B)  cost leadership 
C)  focused differentiation 
D)  adaptive 
E)  differentiation 
A)  pull 
B)  cost leadership 
C)  focused differentiation 
D)  adaptive 
E)  differentiation

Question 11

What is a best-cost strategy? Why is it difficult to execute?

Accepted Answer

Firms that charge relatively low prices

Question 12

Which of the following is accurate regarding a best-cost strategy?

Accepted Answer

A)  It is difficult to execute 
B)  Advertising cost can make it prohibitive 
C)  Companies that manage to implement an effective best-cost strategy are often very successful. 
D)  Product development cost can make it prohibitive 
E)  All of the above are accurate 
A)  It is difficult to execute 
B)  Advertising cost can make it prohibitive 
C)  Companies that manage to implement an effective best-cost strategy are often very successful. 
D)  Product development cost can make it prohibitive 
E)  All of the above are accurate

Question 13

Firms that are not able to offer low prices or appealing unique features are said to be following the best-cost strategy.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following constitutes an advantage of the differentiation strategy?

Accepted Answer

A)  It creates an ability to obtain premium prices from customers. 
B)  Companies following this strategy do not need to spend significant funds on advertising. 
C)  Companies following this strategy depend on their ability to reduce the price to drive competition out of the market. 
D)  Customers always prefer a product with features rather than a cheaper alternative. 
E)  Customers are always eager to pay extra to obtain the unique features that a firm is trying to build its strategy around. 
A)  It creates an ability to obtain premium prices from customers. 
B)  Companies following this strategy do not need to spend significant funds on advertising. 
C)  Companies following this strategy depend on their ability to reduce the price to drive competition out of the market. 
D)  Customers always prefer a product with features rather than a cheaper alternative. 
E)  Customers are always eager to pay extra to obtain the unique features that a firm is trying to build its strategy around.

Question 15

What are the advantages of a cost leadership strategy?

Accepted Answer

Each of the generic strategies offers ad

Question 16

Mekcin is a company that regularly launches products with features that are different from what are offered in the market. It has now launched a new electronic device which can be fitted to vehicles. It can be programmed to automatically dial the police emergency number, provide them with all the required location details, and guide them to the location, in the case of an emergency. It also charges higher for its products than what other companies charge for their products. What disadvantage would the company face because of the strategy it follows?

Accepted Answer

A)  The firm needs to attract huge numbers of customers in order to have a good overall level of profit. 
B)  This company lacks an ability to obtain premium prices from customers. 
C)  This differentiation strategy allows the entrance of new companies in the market. 
D)  This strategy lacks the capacity to generate buyer loyalty. 
E)  Competitors may be able to imitate the features well enough that they are no longer unique. 
A)  The firm needs to attract huge numbers of customers in order to have a good overall level of profit. 
B)  This company lacks an ability to obtain premium prices from customers. 
C)  This differentiation strategy allows the entrance of new companies in the market. 
D)  This strategy lacks the capacity to generate buyer loyalty. 
E)  Competitors may be able to imitate the features well enough that they are no longer unique.

Question 17

All of the following are examples of firms that use a best-cost strategy except:

Accepted Answer

A)  Target 
B)  Walmart 
C)  Netflix 
D)  Chipotle Mexican Grill 
A)  Target 
B)  Walmart 
C)  Netflix 
D)  Chipotle Mexican Grill

Question 18

Focusing on generic strategies allows executives to concentrate on the core elements of firms' business-level strategies.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an advantage of a company following a focused strategy?

Accepted Answer

A)  Companies following the focused differentiation strategy can charge very high prices. 
B)  Damaging attacks never comes from larger firms 
C)  Companies following the focused differentiation strategy never have their growth stymied irrespective of the fact that they serve a niche market. 
D)  The companies are protected from the damaging attacks of smaller firms that adopt an even narrower focus. 
E)  The niche that is an area of operation of one company cannot be made to disappear or be taken over by larger competitors. 
A)  Companies following the focused differentiation strategy can charge very high prices. 
B)  Damaging attacks never comes from larger firms 
C)  Companies following the focused differentiation strategy never have their growth stymied irrespective of the fact that they serve a niche market. 
D)  The companies are protected from the damaging attacks of smaller firms that adopt an even narrower focus. 
E)  The niche that is an area of operation of one company cannot be made to disappear or be taken over by larger competitors.

Question 20

A sneaker manufacturing company targets teenagers. It sells the sneakers to these teenagers at a price which is lower than what is offered in the market. It also has a website where customers can design their own shoes. They then can order the shoes and they will be delivered to them. This is an example of a (n) _____ strategy.

Accepted Answer

A)  generic cost 
B)  best-cost 
C)  standardized cost 
D)  stuck in the middle 
E)  marked 
A)  generic cost 
B)  best-cost 
C)  standardized cost 
D)  stuck in the middle 
E)  marked

What are the limitations of generic strategies?

In the case of focus differentiation, a company lacks the ability to charge high prices.

Firms that are able to offer both low prices and unique features that customers find desirable are said to be stuck in the middle.

A real estate company provides housing services to retired individuals. It basically helps individuals above the age of sixty to search for houses with peaceful surroundings. The fact that the company provides housing services to retired individuals is an example of a(n):

The best cost strategy is difficult to execute in part because creating unique features and communicating them generally raises a firm's costs of doing business.

A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors offer in the market. Which of the statements would hold true for such a strategy?

The two competitive dimensions of business level strategies are:

Jeff wants to open a new coffee shop in his town where there are already two other coffee shops. In order to attract more customers, James decides to charge a lower price for each cup of coffee than what his competitors charge. This is an example of a(n) _____ strategy.

A company that manufactures laundry detergent makes use of salespeople for door-to-door selling to directly sell the products to the customers. The company allows customers to make payments for the products within a period of one month. This is an example of a(n):

A firm following a(n) _____ strategy offers products or services with acceptable quality and features to a broad set of customers at a low price.

What is a best-cost strategy? Why is it difficult to execute?

Which of the following is accurate regarding a best-cost strategy?

Firms that are not able to offer low prices or appealing unique features are said to be following the best-cost strategy.

Which of the following constitutes an advantage of the differentiation strategy?

What are the advantages of a cost leadership strategy?

All of the following are examples of firms that use a best-cost strategy except:

Focusing on generic strategies allows executives to concentrate on the core elements of firms' business-level strategies.

Which of the following is an advantage of a company following a focused strategy?

Mastering Strategy: Art and Science

Leading Strategically

Evaluating the External Environment

Managing Company Resources

Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Competing in International Markets

Selecting Corporate-Level Strategies

Executing Strategy Through Organizational Design

Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility

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Exam 5: Selecting Business-Level Strategies

What are the limitations of generic strategies?

In the case of focus differentiation, a company lacks the ability to charge high prices.

Firms that are able to offer both low prices and unique features that customers find desirable are said to be stuck in the middle.

A real estate company provides housing services to retired individuals. It basically helps individuals above the age of sixty to search for houses with peaceful surroundings. The fact that the company provides housing services to retired individuals is an example of a(n):

The best cost strategy is difficult to execute in part because creating unique features and communicating them generally raises a firm's costs of doing business.

A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors offer in the market. Which of the statements would hold true for such a strategy?

The two competitive dimensions of business level strategies are:

Jeff wants to open a new coffee shop in his town where there are already two other coffee shops. In order to attract more customers, James decides to charge a lower price for each cup of coffee than what his competitors charge. This is an example of a(n) _____ strategy.

A company that manufactures laundry detergent makes use of salespeople for door-to-door selling to directly sell the products to the customers. The company allows customers to make payments for the products within a period of one month. This is an example of a(n):

A firm following a(n) _____ strategy offers products or services with acceptable quality and features to a broad set of customers at a low price.

What is a best-cost strategy? Why is it difficult to execute?

Which of the following is accurate regarding a best-cost strategy?

Firms that are not able to offer low prices or appealing unique features are said to be following the best-cost strategy.

Which of the following constitutes an advantage of the differentiation strategy?

What are the advantages of a cost leadership strategy?

All of the following are examples of firms that use a best-cost strategy except:

Focusing on generic strategies allows executives to concentrate on the core elements of firms' business-level strategies.

Which of the following is an advantage of a company following a focused strategy?

Mastering Strategy: Art and Science

Leading Strategically

Evaluating the External Environment

Managing Company Resources

Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Competing in International Markets

Selecting Corporate-Level Strategies

Executing Strategy Through Organizational Design

Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility

Filters