Question 1

The differentiation strategy is effective for products that are expensive,luxury consumer goods. It is not effective for common,inexpensive products such as doughnuts.

Accepted Answer

A) True 
 B)False

Question 2

What is a cost leadership strategy? How might a firm pursue it? What are some of the risks associated with this strategy?

Accepted Answer

.Firms pursuing strategic flexibility ca

Question 3

Drivers of an effective differentiation strategy include:

Accepted Answer

A)  Product and service features 
B)  The cost-efficient production of a commodity 
C)  The relative importance of search goods in the industry 
D)  Economies of scale 
A)  Product and service features 
B)  The cost-efficient production of a commodity 
C)  The relative importance of search goods in the industry 
D)  Economies of scale

Question 4

Describe the risks of a differentiation strategy.

Accepted Answer

.The risks of a differentiation strategy

Question 5

A low-cost strategy is designed to appeal to only those customers who are the most price-sensitive.

Accepted Answer

A) True 
 B)False

Question 6

A best cost strategy is most like which of the other generic business strategies?

Accepted Answer

A)  Differentiation 
B)  Cost leadership 
C)  Cost focus 
D)  Differentiation combined with cost leadership 
A)  Differentiation 
B)  Cost leadership 
C)  Cost focus 
D)  Differentiation combined with cost leadership

Question 7

A best cost strategy combines the elements of low-cost leadership and differentiation.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a driver that permits a low-cost strategy to be successful?

Accepted Answer

A)  When customers tend to expect different features and benefits from products within a category 
B)  When buyers and suppliers have weak bargaining power, lowering the pressure on the industry's profit margins 
C)  When there are high industry entry barriers, diminishing the potential need for incumbents to compete on price 
D)  When there is a standardization of products or services among industry rivals 
A)  When customers tend to expect different features and benefits from products within a category 
B)  When buyers and suppliers have weak bargaining power, lowering the pressure on the industry's profit margins 
C)  When there are high industry entry barriers, diminishing the potential need for incumbents to compete on price 
D)  When there is a standardization of products or services among industry rivals

Question 9

What are the five generic business-level strategies? Briefly describe each one.

Accepted Answer

.The five generic strategies are: 1)diff

Question 10

In general,firms can be most effective if they develop business-level strategies that will serve the needs of the "average customer."

Accepted Answer

A) True 
 B)False

Question 11

When a firm chooses a business-level strategy,it must ANS the questions "Who? What? and How?" What are these questions and why are they important?

Accepted Answer

.The firm must decide (1)who are the cus

Question 12

Define strategy and business-level strategy. What is the difference between these two concepts?

Accepted Answer

.In general,a strategy consists of the c

Question 13

Describe the advantages of integrating cost leadership and differentiation strategies.

Accepted Answer

.Customers have increasingly high expect

Question 14

For a differentiation strategy to be considered successful:

Accepted Answer

A)  The organization that is pursuing the differentiation must be highly innovative 
B)  Customers must be willing to pay more for the uniqueness of a product or service than the firm paid to create that uniqueness 
C)  Loss of sales cannot reduce the benefits from economies of scale 
D)  The organization must invest heavily in differentiating its products 
A)  The organization that is pursuing the differentiation must be highly innovative 
B)  Customers must be willing to pay more for the uniqueness of a product or service than the firm paid to create that uniqueness 
C)  Loss of sales cannot reduce the benefits from economies of scale 
D)  The organization must invest heavily in differentiating its products

Question 15

Business-level strategies are also known as ________ strategies.

Accepted Answer

A)  Value chain 
B)  Divisional 
C)  Executional 
D)  Generic 
A)  Value chain 
B)  Divisional 
C)  Executional 
D)  Generic

Question 16

Companies have little to gain from trying to create psychological or cognitive identification by customers with the company's products.

Accepted Answer

A) True 
 B)False

Question 17

The integration of a cost leadership and a differentiation strategy:

Accepted Answer

A)  Is challenging because the firm must become competent in more primary and support activities 
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 the firm must become competent in more primary and support activities 
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 18

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

Accepted Answer

A)  Customer needs and competitors' strategies 
B)  The match between the opportunities and threats in its external market and the strengths of its internal environment 
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 match between the opportunities and threats in its external market and the strengths of its internal environment 
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 19

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Accepted Answer

A) True 
 B)False

Question 20

Typically two or three companies in an industry will share the low-cost leadership position,making rivalry among them very intense.

Accepted Answer

A) True 
 B)False

The differentiation strategy is effective for products that are expensive,luxury consumer goods. It is not effective for common,inexpensive products such as doughnuts.

What is a cost leadership strategy? How might a firm pursue it? What are some of the risks associated with this strategy?

Drivers of an effective differentiation strategy include:

Describe the risks of a differentiation strategy.

A low-cost strategy is designed to appeal to only those customers who are the most price-sensitive.

A best cost strategy is most like which of the other generic business strategies?

A best cost strategy combines the elements of low-cost leadership and differentiation.

Which of the following is a driver that permits a low-cost strategy to be successful?

What are the five generic business-level strategies? Briefly describe each one.

In general,firms can be most effective if they develop business-level strategies that will serve the needs of the "average customer."

When a firm chooses a business-level strategy,it must ANS the questions "Who? What? and How?" What are these questions and why are they important?

Define strategy and business-level strategy. What is the difference between these two concepts?

Describe the advantages of integrating cost leadership and differentiation strategies.

For a differentiation strategy to be considered successful:

Business-level strategies are also known as ________ strategies.

Companies have little to gain from trying to create psychological or cognitive identification by customers with the company's products.

The integration of a cost leadership and a differentiation strategy:

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

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Typically two or three companies in an industry will share the low-cost leadership position,making rivalry among them very intense.

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

The differentiation strategy is effective for products that are expensive,luxury consumer goods. It is not effective for common,inexpensive products such as doughnuts.

What is a cost leadership strategy? How might a firm pursue it? What are some of the risks associated with this strategy?

Drivers of an effective differentiation strategy include:

Describe the risks of a differentiation strategy.

A low-cost strategy is designed to appeal to only those customers who are the most price-sensitive.

A best cost strategy is most like which of the other generic business strategies?

A best cost strategy combines the elements of low-cost leadership and differentiation.

Which of the following is a driver that permits a low-cost strategy to be successful?

What are the five generic business-level strategies? Briefly describe each one.

In general,firms can be most effective if they develop business-level strategies that will serve the needs of the "average customer."

When a firm chooses a business-level strategy,it must ANS the questions "Who? What? and How?" What are these questions and why are they important?

Define strategy and business-level strategy. What is the difference between these two concepts?

Describe the advantages of integrating cost leadership and differentiation strategies.

For a differentiation strategy to be considered successful:

Business-level strategies are also known as ________ strategies.

Companies have little to gain from trying to create psychological or cognitive identification by customers with the company's products.

The integration of a cost leadership and a differentiation strategy:

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

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Typically two or three companies in an industry will share the low-cost leadership position,making rivalry among them very intense.

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