Question 1

The products or services that are differentiated from others have qualities that are:

Accepted Answer

A)  perceived by the customer to add value that they will pay a premium to purchase. 
B)  valued by the typical industry customer. 
C)  perceived as standardized by the customer. 
D)  seen as classic attributes rather than passing fads. 
A)  perceived by the customer to add value that they will pay a premium to purchase. 
B)  valued by the typical industry customer. 
C)  perceived as standardized by the customer. 
D)  seen as classic attributes rather than passing fads.

Question 2

The generalized forms of value that goods and services provide are either low cost with acceptable features or highly differentiated features with acceptable cost.

Accepted Answer

A) True 
 B)False

Question 3

Stage in the family life cycle is a __________ factor.

Accepted Answer

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

Question 4

When selecting a business-level strategy, the firm must determine all of the following EXCEPT:

Accepted Answer

A)  how the customers' needs will be satisfied. 
B)  who the customer is. 
C)  what the customers' needs are. 
D)  why these customers' needs should be satisfied. 
A)  how the customers' needs will be satisfied. 
B)  who the customer is. 
C)  what the customers' needs are. 
D)  why these customers' needs should be satisfied.

Question 5

A business model is developed first.Then the firm takes steps to understand customers in terms of who, what, and how in order to develop a business-level strategy.

Accepted Answer

A) True 
 B)False

Question 6

Human resources and other support functions are not value-creating activities in the value chain; only value-chain activities create value.

Accepted Answer

A) True 
 B)False

Question 7

The value-creating activities associated with the cost leadership strategy and differentiation strategy are the same.

Accepted Answer

A) True 
 B)False

Question 8

Describe the relationship between a business model and a business-level strategy and explain why a business model might need to be changed or adjusted.

Accepted Answer

A business model is a framework for how

Question 9

Which of the following is NOT a value-creating activity associated with the differentiation strategy?

Accepted Answer

A)  Developing policies to ensure efficient hiring and retention to keep costs low and implement training to ensure high employee efficiency 
B)  Providing accurate and timely delivery of goods to customers 
C)  Ensuring the receipt of high-quality supplies (raw materials and other goods) 
D)  Developing flexible systems that allow rapid response to customers' changing needs 
A)  Developing policies to ensure efficient hiring and retention to keep costs low and implement training to ensure high employee efficiency 
B)  Providing accurate and timely delivery of goods to customers 
C)  Ensuring the receipt of high-quality supplies (raw materials and other goods) 
D)  Developing flexible systems that allow rapid response to customers' changing needs

Question 10

Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food made from all-natural ingredients and organically raised lamb.This brand has a strong following and is recommended by veterinarians who practice in affluent neighborhoods.If Wholesome's main supplier of lamb announces that the price for lamb will be 15 percent higher next year, which of the following is most likely?

Accepted Answer

A)  Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer. 
B)  Companies pursuing Wholesome's business strategy are especially vulnerable to this risk. 
C)  If Wholesome raises its pet food prices, customers will turn to less expensive brands such as Purina. 
D)  Wholesome probably operates on very thin margins, and a cost increase will threaten its ability to earn average returns. 
A)  Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer. 
B)  Companies pursuing Wholesome's business strategy are especially vulnerable to this risk. 
C)  If Wholesome raises its pet food prices, customers will turn to less expensive brands such as Purina. 
D)  Wholesome probably operates on very thin margins, and a cost increase will threaten its ability to earn average returns.

Question 11

A business-level strategy is a framework for how the firm will create value, while a business model creates the path a firm intends to follow to gain competitive advantage.

Accepted Answer

A) True 
 B)False

Question 12

Reach is an especially critical dimension for which of the following firms?

Accepted Answer

A)  Twitter 
B)  JCPenney 
C)  Blockbuster 
D)  Colgate-Palmolive 
A)  Twitter 
B)  JCPenney 
C)  Blockbuster 
D)  Colgate-Palmolive

Question 13

A business model should be selected with great care because it cannot be changed, or even adjusted, once a firm begins to use the model to implement its business-level strategy.

Accepted Answer

A) True 
 B)False

Question 14

As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one of the major aspects of business strategy for the newer networks is a(n) __________ than the traditional networks.

Accepted Answer

A)  broader target market 
B)  narrower target market 
C)  increased use of primary activities to capture value 
D)  increased use of support activities to capture value 
A)  broader target market 
B)  narrower target market 
C)  increased use of primary activities to capture value 
D)  increased use of support activities to capture value

Question 15

The integration of a cost leadership and a differentiation strategy:

Accepted Answer

A)  is challenging because it increases the number of value-chain activities and support functions in which the firm must become competent. 
B)  forces a firm to adapt more slowly to changes in its environment. 
C)  allows the firm to avoid being "stuck in the middle." 
D)  requires such a large customer base that it is most practical for firms in the global marketplace. 
A)  is challenging because it increases the number of value-chain activities and support functions in which the firm must become competent. 
B)  forces a firm to adapt more slowly to changes in its environment. 
C)  allows the firm to avoid being "stuck in the middle." 
D)  requires such a large customer base that it is most practical for firms in the global marketplace.

Question 16

Mercedes mass produces luxury vehicles at a premium price.It uses a(n) __________ strategy.

Accepted Answer

A)  differentiation 
B)  focused differentiation 
C)  integrated cost leadership/differentiation 
D)  focused cost leadership 
A)  differentiation 
B)  focused differentiation 
C)  integrated cost leadership/differentiation 
D)  focused cost leadership

Question 17

The typical risks of a differentiation strategy do NOT include which of the following?

Accepted Answer

A)  Customers may find the price differential between the low-cost product and the differentiated product too large. 
B)  Customers' experience with other products may narrow customers' perception of the value of a product's differentiated features. 
C)  Counterfeit goods are widely available and acceptable to customers. 
D)  Suppliers of raw materials erode the firm's profit margin with price increases. 
A)  Customers may find the price differential between the low-cost product and the differentiated product too large. 
B)  Customers' experience with other products may narrow customers' perception of the value of a product's differentiated features. 
C)  Counterfeit goods are widely available and acceptable to customers. 
D)  Suppliers of raw materials erode the firm's profit margin with price increases.

Question 18

Historically, women have paid more for dry cleaning than men.Signature Cleaners advertises "equal price" for all customers.Signature Cleaners appeals to women, which is market segmentation by __________ factors.

Accepted Answer

A)  demographic 
B)  socioeconomic 
C)  geographic 
D)  consumption pattern 
A)  demographic 
B)  socioeconomic 
C)  geographic 
D)  consumption pattern

Question 19

Zara has pioneered "cheap chic" in clothing apparel.Zara offers current and desirable fashion goods at relatively low prices.To implement the strategy, Zara uses sophisticated designers and effective means of managing costs.These are all characteristics of which of the following business-level strategies?

Accepted Answer

A)  Cost leadership 
B)  Differentiation 
C)  Integrated cost leadership/differentiation 
D)  Stuck in the middle 
A)  Cost leadership 
B)  Differentiation 
C)  Integrated cost leadership/differentiation 
D)  Stuck in the middle

Question 20

The difference between the cost leadership and differentiation business-level strategies on the one hand, and the focused cost leadership and focused differentiation strategies on the other, are their basis for customer value.

Accepted Answer

A) True 
 B)False

The products or services that are differentiated from others have qualities that are:

The generalized forms of value that goods and services provide are either low cost with acceptable features or highly differentiated features with acceptable cost.

Stage in the family life cycle is a __________ factor.

When selecting a business-level strategy, the firm must determine all of the following EXCEPT:

A business model is developed first.Then the firm takes steps to understand customers in terms of who, what, and how in order to develop a business-level strategy.

Human resources and other support functions are not value-creating activities in the value chain; only value-chain activities create value.

The value-creating activities associated with the cost leadership strategy and differentiation strategy are the same.

Describe the relationship between a business model and a business-level strategy and explain why a business model might need to be changed or adjusted.

Which of the following is NOT a value-creating activity associated with the differentiation strategy?

A business-level strategy is a framework for how the firm will create value, while a business model creates the path a firm intends to follow to gain competitive advantage.

Reach is an especially critical dimension for which of the following firms?

A business model should be selected with great care because it cannot be changed, or even adjusted, once a firm begins to use the model to implement its business-level strategy.

As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one of the major aspects of business strategy for the newer networks is a(n) __________ than the traditional networks.

The integration of a cost leadership and a differentiation strategy:

Mercedes mass produces luxury vehicles at a premium price.It uses a(n) __________ strategy.

The typical risks of a differentiation strategy do NOT include which of the following?

Historically, women have paid more for dry cleaning than men.Signature Cleaners advertises "equal price" for all customers.Signature Cleaners appeals to women, which is market segmentation by __________ factors.

The difference between the cost leadership and differentiation business-level strategies on the one hand, and the focused cost leadership and focused differentiation strategies on the other, are their basis for customer value.

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

The products or services that are differentiated from others have qualities that are:

The generalized forms of value that goods and services provide are either low cost with acceptable features or highly differentiated features with acceptable cost.

Stage in the family life cycle is a __________ factor.

When selecting a business-level strategy, the firm must determine all of the following EXCEPT:

A business model is developed first.Then the firm takes steps to understand customers in terms of who, what, and how in order to develop a business-level strategy.

Human resources and other support functions are not value-creating activities in the value chain; only value-chain activities create value.

The value-creating activities associated with the cost leadership strategy and differentiation strategy are the same.

Describe the relationship between a business model and a business-level strategy and explain why a business model might need to be changed or adjusted.

Which of the following is NOT a value-creating activity associated with the differentiation strategy?

A business-level strategy is a framework for how the firm will create value, while a business model creates the path a firm intends to follow to gain competitive advantage.

Reach is an especially critical dimension for which of the following firms?

A business model should be selected with great care because it cannot be changed, or even adjusted, once a firm begins to use the model to implement its business-level strategy.

As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one of the major aspects of business strategy for the newer networks is a(n) __________ than the traditional networks.

The integration of a cost leadership and a differentiation strategy:

Mercedes mass produces luxury vehicles at a premium price.It uses a(n) __________ strategy.

The typical risks of a differentiation strategy do NOT include which of the following?

Historically, women have paid more for dry cleaning than men.Signature Cleaners advertises "equal price" for all customers.Signature Cleaners appeals to women, which is market segmentation by __________ factors.

The difference between the cost leadership and differentiation business-level strategies on the one hand, and the focused cost leadership and focused differentiation strategies on the other, are their basis for customer value.

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