Question 1

Strategy formulation responsibilities at the business level include all of the following except:

Accepted Answer

A)  Establishment and communication of goals 
B)  Identification of strengths and weaknesses 
C)  Identification of opportunities and threats 
D)  Management of the corporate portfolio 
A)  Establishment and communication of goals 
B)  Identification of strengths and weaknesses 
C)  Identification of opportunities and threats 
D)  Management of the corporate portfolio

Question 2

All of the following are ways that firms pursue a cost leadership strategy except:

Accepted Answer

A)  Giving their product the most desirable and highest quality features 
B)  Using technology to cut costs 
C)  Experience effects 
D)  Economies of scale 
A)  Giving their product the most desirable and highest quality features 
B)  Using technology to cut costs 
C)  Experience effects 
D)  Economies of scale

Question 3

A business-level strategy describes:

Accepted Answer

A)  The businesses in which the company intends to compete 
B)  All policies and procedures used in functional departments 
C)  The firm's actions to exploit its competitive advantage over rivals 
D)  A firm's resources, intent, and mission 
A)  The businesses in which the company intends to compete 
B)  All policies and procedures used in functional departments 
C)  The firm's actions to exploit its competitive advantage over rivals 
D)  A firm's resources, intent, and mission

Question 4

Only one firm at a time can pursue a particular business-level strategy.

Accepted Answer

A) True 
 B)False

Question 5

The biggest risk to a focus strategy is that the small market that is being targeted will simply disappear should the environment change.

Accepted Answer

A) True 
 B)False

Question 6

What are the drivers of an effective differentiation strategy?

Accepted Answer

.Drivers of an effective differentiation

Question 7

Low-cost leaders usually concentrate on the primary activities of inbound logistics and outbound logistics as a means to reduce costs.

Accepted Answer

A) True 
 B)False

Question 8

Business-level strategy can be thought of as the firm's core strategy.

Accepted Answer

A) True 
 B)False

Question 9

The risks associated with pursuing a cost leadership strategy include all of the following except:

Accepted Answer

A)  Preoccupation with costs may lead a firm not to detect required product changes 
B)  The firm's products are likely to become targets for imitators 
C)  Efforts to cut costs could lead to unsafe products 
D)  Cost cutting could lead to products of very poor quality 
A)  Preoccupation with costs may lead a firm not to detect required product changes 
B)  The firm's products are likely to become targets for imitators 
C)  Efforts to cut costs could lead to unsafe products 
D)  Cost cutting could lead to products of very poor quality

Question 10

When a product's unique attributes provide value to customers,the firm is implementing:

Accepted Answer

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

Question 11

How can a firm be successful by pursuing a differentiation strategy and what are some of the risks associated with it?

Accepted Answer

.The only way a differentiation strategy

Question 12

Business-level strategies are concerned specifically with:

Accepted Answer

A)  Creating differences between the firm's position and its competitors 
B)  Selecting the industries in which the firm will compete 
C)  How functional areas will be organized within the firm 
D)  How a business with multiple physical locations will operate one of those locations 
A)  Creating differences between the firm's position and its competitors 
B)  Selecting the industries in which the firm will compete 
C)  How functional areas will be organized within the firm 
D)  How a business with multiple physical locations will operate one of those locations

Question 13

A company that simultaneously pursues the two basic competitive approaches but ends up with costs that are too high and a product that does not command a premium price may find itself:

Accepted Answer

A)  With profit margins higher that the industry norm 
B)  Unable to purge its customer list quickly enough 
C)  Having to invest in other companies to become more profitable 
D)  "Stuck in the middle" 
A)  With profit margins higher that the industry norm 
B)  Unable to purge its customer list quickly enough 
C)  Having to invest in other companies to become more profitable 
D)  "Stuck in the middle"

Question 14

What are the factors that can lead to a low-cost position?

Accepted Answer

.A company can realize economies of scal

Question 15

A risk of the differentiation strategy is that the firm's means of differentiation may eventually not provide value for which customers are willing to pay.

Accepted Answer

A) True 
 B)False

Question 16

A crucial condition upon which the success of a business-level strategy rests is:

Accepted Answer

A)  The fact that as customer expectations change the business must be searching for new customers who favour the company's existing products or services 
B)  Always bearing in mind that competition evolves; existing competitors change and new ones arise 
C)  Being able to identify and participate in those industries that are stable 
D)  Allowing all employees the freedom to adjust the strategy from day-to-day as business conditions change 
A)  The fact that as customer expectations change the business must be searching for new customers who favour the company's existing products or services 
B)  Always bearing in mind that competition evolves; existing competitors change and new ones arise 
C)  Being able to identify and participate in those industries that are stable 
D)  Allowing all employees the freedom to adjust the strategy from day-to-day as business conditions change

Question 17

A company with a low-cost position generally needs to give little thought to economies of scale or capacity utilization. These are more important to firms that choose to differentiate.

Accepted Answer

A) True 
 B)False

Question 18

A competitive shakeout usually occurs at the beginning of the growth stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 19

The choice of market scope by a company refers to whether it will do business just domestically or it will venture outside of its home country.

Accepted Answer

A) True 
 B)False

Question 20

Effective differentiation often shields incumbents from competition presented by new entrants and substitutes.

Accepted Answer

A) True 
 B)False

Strategy formulation responsibilities at the business level include all of the following except:

All of the following are ways that firms pursue a cost leadership strategy except:

A business-level strategy describes:

Only one firm at a time can pursue a particular business-level strategy.

The biggest risk to a focus strategy is that the small market that is being targeted will simply disappear should the environment change.

What are the drivers of an effective differentiation strategy?

Low-cost leaders usually concentrate on the primary activities of inbound logistics and outbound logistics as a means to reduce costs.

Business-level strategy can be thought of as the firm's core strategy.

The risks associated with pursuing a cost leadership strategy include all of the following except:

When a product's unique attributes provide value to customers,the firm is implementing:

How can a firm be successful by pursuing a differentiation strategy and what are some of the risks associated with it?

Business-level strategies are concerned specifically with:

A company that simultaneously pursues the two basic competitive approaches but ends up with costs that are too high and a product that does not command a premium price may find itself:

What are the factors that can lead to a low-cost position?

A risk of the differentiation strategy is that the firm's means of differentiation may eventually not provide value for which customers are willing to pay.

A crucial condition upon which the success of a business-level strategy rests is:

A company with a low-cost position generally needs to give little thought to economies of scale or capacity utilization. These are more important to firms that choose to differentiate.

A competitive shakeout usually occurs at the beginning of the growth stage of the product life cycle.

The choice of market scope by a company refers to whether it will do business just domestically or it will venture outside of its home country.

Effective differentiation often shields incumbents from competition presented by new entrants and substitutes.

What is Strategy

Strategic Objectives

Governance,Ethics & Corporate Social Responsibility in Strategy

Culture and Strategy

The Internal Environment

The External Environment

Corporate-Level Strategy

International Strategy

Competitive Rivalry & Competitive Dynamics

Strategic Leadership

Strategic Failure and Turnaround

Strategic Change

Strategic Implementation

Organizational Structure and Controls

Strategic Entrepreneurship

Filters

Exam 7: Business-Level Strategy

Strategy formulation responsibilities at the business level include all of the following except:

All of the following are ways that firms pursue a cost leadership strategy except:

A business-level strategy describes:

Only one firm at a time can pursue a particular business-level strategy.

The biggest risk to a focus strategy is that the small market that is being targeted will simply disappear should the environment change.

What are the drivers of an effective differentiation strategy?

Low-cost leaders usually concentrate on the primary activities of inbound logistics and outbound logistics as a means to reduce costs.

Business-level strategy can be thought of as the firm's core strategy.

The risks associated with pursuing a cost leadership strategy include all of the following except:

When a product's unique attributes provide value to customers,the firm is implementing:

How can a firm be successful by pursuing a differentiation strategy and what are some of the risks associated with it?

Business-level strategies are concerned specifically with:

A company that simultaneously pursues the two basic competitive approaches but ends up with costs that are too high and a product that does not command a premium price may find itself:

What are the factors that can lead to a low-cost position?

A risk of the differentiation strategy is that the firm's means of differentiation may eventually not provide value for which customers are willing to pay.

A crucial condition upon which the success of a business-level strategy rests is:

A company with a low-cost position generally needs to give little thought to economies of scale or capacity utilization. These are more important to firms that choose to differentiate.

A competitive shakeout usually occurs at the beginning of the growth stage of the product life cycle.

The choice of market scope by a company refers to whether it will do business just domestically or it will venture outside of its home country.

Effective differentiation often shields incumbents from competition presented by new entrants and substitutes.

What is Strategy

Strategic Objectives

Governance,Ethics & Corporate Social Responsibility in Strategy

Culture and Strategy

The Internal Environment

The External Environment

Corporate-Level Strategy

International Strategy

Competitive Rivalry & Competitive Dynamics

Strategic Leadership

Strategic Failure and Turnaround

Strategic Change

Strategic Implementation

Organizational Structure and Controls

Strategic Entrepreneurship

Filters