Exam 4: Business-Level Strategy

Chelsea Milling Company makes Jiffy packaged baking mixes.It was established in 1930.It has never spent one cent on advertising, which is one reason it is able to pursue a(n) __________ strategy.

The use of a differentiation strategy would likely be LEAST effective in which of the following markets?

Chico's is a clothing retailer that targets middle-aged women who want stylish and appealing clothes that are suitable for the mature figure.Chico's has an extensive customer list, a frequent-buyer discount card, and frequent sales promotions to Chico's customers based on their spending levels.Chico's uses a(n) __________ strategy.

Describe the additional risks undertaken by firms pursuing a focus strategy.

Cost leaders usually concentrate on the value-chain activities of inbound logistics and outbound logistics as a means to reduce costs.

The new generation of lunch trucks serving high-end fare in cities such as New York, San Francisco, and Los Angeles share which of the following business strategies?

TQM is most helpful to firms following the __________ business strategy.

A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in:

Describe how a differentiation strategy can help a firm earn above-average returns.

Describe a firm with which you are familiar.Which business-level strategy does it use, and what are the risks to that particular firm?

Religious beliefs are an example of customer segmentation by __________ factors.

The typical risks of a cost leadership strategy include:

By linking companies with their suppliers, distributors, and customers, __________ provide a company with flexibility.

A flexible manufacturing system is a computer-controlled process used to produce a variety of products in moderate, flexible quantities with a minimum of manual intervention.

The three dimensions of a firm's relationships with customers include all the following EXCEPT:

Airbnb matches people wanting to rent out their properties with individuals seeking properties to rent.What type of business model does Airbnb use?

Steak and Shake just announced that it is selling some of its stores to individuals who will then pay a fee and royalties back to the company in exchange for use of the company name and products.Steak and Shake is transitioning into a franchise business model.

Companies without core competencies in their value-chain activities and support functions are still able to successfully implement either a cost leadership or a differentiation strategy, although they cannot implement an integrated cost leadership/differentiation strategy.

A risk of a focus strategy is that the needs of customers within a narrow competitive segment may become more similar to those of industry-wide customers as a whole over time.

A river barge company can offer cheaper, although slower, per-pound transportation of products to companies when compared with transportation by air, truck, or rail.The river barge company should first target customers whose companies use: