Question 1

An analysis of the activity map of a successful company such as Southwest Airlines emphasizes how:

Accepted Answer

A)  the organizational culture of Southwest Airlines is the key to its success. 
B)  understanding the profitability in an industry indicates to companies where above-average returns can be earned. 
C)  it is harder for rivals to match a configuration of integrated activities than to imitate a single activity. 
D)  the primary and support activities of a successful company capture value all along the value chain. 
A)  the organizational culture of Southwest Airlines is the key to its success. 
B)  understanding the profitability in an industry indicates to companies where above-average returns can be earned. 
C)  it is harder for rivals to match a configuration of integrated activities than to imitate a single activity. 
D)  the primary and support activities of a successful company capture value all along the value chain.

Question 2

Duolingo is a free app that includes in-app advertising.There is also an upgraded version that consumers can purchase.What type of business model does Duolingo use?

Accepted Answer

A)  Both franchise and advertising 
B)  Both freemium and differentiation 
C)  Both freemium and advertising 
D)  Peer-to-peer 
A)  Both franchise and advertising 
B)  Both freemium and differentiation 
C)  Both freemium and advertising 
D)  Peer-to-peer

Question 3

A manufacturer of jewelry imitates the style of a popular and expensive brand using manufactured stones rather than real gemstones and lesser grade metals rather than silver and gold.The manufacturer packages the jewelry in boxes of the same color imprinted with an almost identical logo.About 85 percent of the company's sales are through Internet sales.This example illustrates the competitive risk of __________ that threatens companies that use the differentiation strategy.

Accepted Answer

A)  customer sensitivity to price differentials 
B)  threat by the cost leader 
C)  customer experience 
D)  counterfeiting 
A)  customer sensitivity to price differentials 
B)  threat by the cost leader 
C)  customer experience 
D)  counterfeiting

Question 4

Because of its focus on innovation and quality manufacturing, total quality management is not useful for firms that follow a cost leadership strategy.

Accepted Answer

A) True 
 B)False

Question 5

Why is it important for a firm to develop and implement a business-level strategy?

Accepted Answer

The purpose of a business-level strategy

Question 6

More choices and easily accessible information about the functionality of firms' products are creating increasingly __________ customers.

Accepted Answer

A)  sophisticated and knowledgeable 
B)  loyal 
C)  dissatisfied 
D)  content 
A)  sophisticated and knowledgeable 
B)  loyal 
C)  dissatisfied 
D)  content

Question 7

Customer ratings of products they bought online is an example of:

Accepted Answer

A)  loyalty. 
B)  reach. 
C)  richness. 
D)  affiliation. 
A)  loyalty. 
B)  reach. 
C)  richness. 
D)  affiliation.

Question 8

Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances:

Accepted Answer

A)  the reach of the company toward the customer. 
B)  the ability to identify the customer. 
C)  the richness of the relationship with the customer. 
D)  affiliation with the customer. 
A)  the reach of the company toward the customer. 
B)  the ability to identify the customer. 
C)  the richness of the relationship with the customer. 
D)  affiliation with the customer.

Question 9

The __________ dimension of relationships with customers is particularly important for social networking sites such as Facebook and Instagram.

Accepted Answer

A)  reach 
B)  richness 
C)  affiliation 
D)  social 
A)  reach 
B)  richness 
C)  affiliation 
D)  social

Question 10

When selecting a business-level strategy, the firm determines who will be served, what needs those target customers have that it will satisfy, and how those needs will be satisfied.

Accepted Answer

A) True 
 B)False

Question 11

The activities in the value chains of companies using focus strategies are quite different than the activities in the value chains of companies using industry-wide business strategies.

Accepted Answer

A) True 
 B)False

Question 12

The __________ dimension of relationships with customers is concerned with the firm's access and connection to customers.

Accepted Answer

A)  loyalty 
B)  reach 
C)  richness 
D)  affiliation 
A)  loyalty 
B)  reach 
C)  richness 
D)  affiliation

Question 13

How does a firm capture value when using a franchise business model?

Accepted Answer

A)  By receiving fees and royalty payments 
B)  By selling a premium version of its product or service 
C)  By giving advertisers access to target customers 
D)  By matching those who want a service with those who are providing it 
A)  By receiving fees and royalty payments 
B)  By selling a premium version of its product or service 
C)  By giving advertisers access to target customers 
D)  By matching those who want a service with those who are providing it

Question 14

Although it is a cost leader, IKEA also offers some differentiated features that appeal to its target customers, including its unique furniture designs, in-store playrooms for children, wheelchairs for customer use, and extended hours.

Accepted Answer

A) True 
 B)False

Question 15

The book The Dyslexic Advantage appeals to a market of educators, people with dyslexia, their friends, family, and coworkers.This is customer segmentation by __________ factors.

Accepted Answer

A)  demographic 
B)  socioeconomic 
C)  psychological 
D)  consumption 
A)  demographic 
B)  socioeconomic 
C)  psychological 
D)  consumption

Question 16

When a firm is able to produce nonstandardized (i.e., distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementing a(n):

Accepted Answer

A)  differentiation strategy. 
B)  cost leadership strategy. 
C)  integrated cost leadership/differentiation strategy. 
D)  single-product strategy. 
A)  differentiation strategy. 
B)  cost leadership strategy. 
C)  integrated cost leadership/differentiation strategy. 
D)  single-product strategy.

Question 17

A company pursuing the differentiation or focused differentiation strategy would tend to:

Accepted Answer

A)  build economies of scale and efficient operations. 
B)  develop and maintain cost-effective MIS operations. 
C)  develop flexible systems that allow rapid response to customers' changing needs. 
D)  have relationships with suppliers to maintain efficient flow of supplies for operations. 
A)  build economies of scale and efficient operations. 
B)  develop and maintain cost-effective MIS operations. 
C)  develop flexible systems that allow rapid response to customers' changing needs. 
D)  have relationships with suppliers to maintain efficient flow of supplies for operations.

Question 18

A differentiation strategy can be effective in controlling the power of substitutes in an industry because:

Accepted Answer

A)  customers have low switching costs. 
B)  substitute products are lower quality. 
C)  a differentiating firm can always lower prices. 
D)  customers develop brand loyalty. 
A)  customers have low switching costs. 
B)  substitute products are lower quality. 
C)  a differentiating firm can always lower prices. 
D)  customers develop brand loyalty.

Question 19

The effectiveness of any of the generic business-level strategies is contingent on both:

Accepted Answer

A)  customer needs and competitors' strategies. 
B)  the opportunities and threats in a firm's external environment and the strengths and weaknesses derived from the firm's resource portfolio. 
C)  the trends in the general consumer base and the robustness of the global and industry economy. 
D)  the firm's competitive scope and its competitive advantage. 
A)  customer needs and competitors' strategies. 
B)  the opportunities and threats in a firm's external environment and the strengths and weaknesses derived from the firm's resource portfolio. 
C)  the trends in the general consumer base and the robustness of the global and industry economy. 
D)  the firm's competitive scope and its competitive advantage.

Question 20

When a firm chooses a business-level strategy, it must answer the who, what, and how questions.What are these questions, and why are they important?

Accepted Answer

The firm must decide (1) who will be ser

An analysis of the activity map of a successful company such as Southwest Airlines emphasizes how:

Duolingo is a free app that includes in-app advertising.There is also an upgraded version that consumers can purchase.What type of business model does Duolingo use?

Because of its focus on innovation and quality manufacturing, total quality management is not useful for firms that follow a cost leadership strategy.

Why is it important for a firm to develop and implement a business-level strategy?

More choices and easily accessible information about the functionality of firms' products are creating increasingly __________ customers.

Customer ratings of products they bought online is an example of:

Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances:

The __________ dimension of relationships with customers is particularly important for social networking sites such as Facebook and Instagram.

When selecting a business-level strategy, the firm determines who will be served, what needs those target customers have that it will satisfy, and how those needs will be satisfied.

The activities in the value chains of companies using focus strategies are quite different than the activities in the value chains of companies using industry-wide business strategies.

The __________ dimension of relationships with customers is concerned with the firm's access and connection to customers.

How does a firm capture value when using a franchise business model?

Although it is a cost leader, IKEA also offers some differentiated features that appeal to its target customers, including its unique furniture designs, in-store playrooms for children, wheelchairs for customer use, and extended hours.

The book The Dyslexic Advantage appeals to a market of educators, people with dyslexia, their friends, family, and coworkers.This is customer segmentation by __________ factors.

When a firm is able to produce nonstandardized (i.e., distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementing a(n):

A company pursuing the differentiation or focused differentiation strategy would tend to:

A differentiation strategy can be effective in controlling the power of substitutes in an industry because:

The effectiveness of any of the generic business-level strategies is contingent on both:

When a firm chooses a business-level strategy, it must answer the who, what, and how questions.What are these questions, and why are they important?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 4: Business-Level Strategy

An analysis of the activity map of a successful company such as Southwest Airlines emphasizes how:

Duolingo is a free app that includes in-app advertising.There is also an upgraded version that consumers can purchase.What type of business model does Duolingo use?

Because of its focus on innovation and quality manufacturing, total quality management is not useful for firms that follow a cost leadership strategy.

Why is it important for a firm to develop and implement a business-level strategy?

More choices and easily accessible information about the functionality of firms' products are creating increasingly __________ customers.

Customer ratings of products they bought online is an example of:

Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances:

The __________ dimension of relationships with customers is particularly important for social networking sites such as Facebook and Instagram.

When selecting a business-level strategy, the firm determines who will be served, what needs those target customers have that it will satisfy, and how those needs will be satisfied.

The activities in the value chains of companies using focus strategies are quite different than the activities in the value chains of companies using industry-wide business strategies.

The __________ dimension of relationships with customers is concerned with the firm's access and connection to customers.

How does a firm capture value when using a franchise business model?

Although it is a cost leader, IKEA also offers some differentiated features that appeal to its target customers, including its unique furniture designs, in-store playrooms for children, wheelchairs for customer use, and extended hours.

The book The Dyslexic Advantage appeals to a market of educators, people with dyslexia, their friends, family, and coworkers.This is customer segmentation by __________ factors.

When a firm is able to produce nonstandardized (i.e., distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementing a(n):

A company pursuing the differentiation or focused differentiation strategy would tend to:

A differentiation strategy can be effective in controlling the power of substitutes in an industry because:

The effectiveness of any of the generic business-level strategies is contingent on both:

When a firm chooses a business-level strategy, it must answer the who, what, and how questions.What are these questions, and why are they important?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters