Question 1

The richness dimension of relationships with customers is concerned with the depth and detail of the one-way flow of information between the firm and the customer.

Accepted Answer

A) True 
 B)False

Question 2

While there are constraints that limit the number of firms that adopt the focused cost leadership strategy, this strategy inherently performs better than the cost leadership strategy.

Accepted Answer

A) True 
 B)False

Question 3

When employing a cost leadership strategy, which factors allow a firm to earn above-average returns in spite of strong competitive forces?

Accepted Answer

Rivalry: Having a low-cost position serv

Question 4

A differentiation strategy provides products that customers perceive as having:

Accepted Answer

A) acceptable features 
B) features of little value relative to the value provided by the low-cost leader's product 
C) features for which the customer will pay a low price 
D) features that are non-standardised and meet unique needs 
A) acceptable features 
B) features of little value relative to the value provided by the low-cost leader's product 
C) features for which the customer will pay a low price 
D) features that are non-standardised and meet unique needs

Question 5

A flexible manufacturing system is a:

Accepted Answer

A) manufacturing system where the output produced varies each month 
B) computer-controlled process that is used to produce a variety of products in moderate, flexible quantities 
C) system of manufacturing where humans and machines are used interchangeably 
D) system where firms may choose to produce a product in any given month 
A) manufacturing system where the output produced varies each month 
B) computer-controlled process that is used to produce a variety of products in moderate, flexible quantities 
C) system of manufacturing where humans and machines are used interchangeably 
D) system where firms may choose to produce a product in any given month

Question 6

The differentiation strategy calls for a firm to provide products that:

Accepted Answer

A) have acceptable features 
B) incorporate features for which the customer will pay a premium 
C) are the lowest cost possible 
D) solve the problem of being 'stuck in the middle' 
A) have acceptable features 
B) incorporate features for which the customer will pay a premium 
C) are the lowest cost possible 
D) solve the problem of being 'stuck in the middle'

Question 7

________ are three sources of strategic flexibility that facilitate the use of the integrated strategy.

Accepted Answer

A) Flexible manufacturing systems, information networks and total quality management systems 
B) Computer information systems, total quality management systems and value chain analytical systems 
C) Flexible manufacturing systems, value chain analytical systems and strategic management process systems 
D) Total quality management systems, information networks and enterprise resource planning software systems 
A) Flexible manufacturing systems, information networks and total quality management systems 
B) Computer information systems, total quality management systems and value chain analytical systems 
C) Flexible manufacturing systems, value chain analytical systems and strategic management process systems 
D) Total quality management systems, information networks and enterprise resource planning software systems

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

One risk of the differentiation strategy is that:

Accepted Answer

A) a competitor may focus on the same market segment 
B) equipment may quickly become obsolete 
C) a firm's means of differentiation may no longer provide value to the customer 
D) a firm may fail to detect competitors' efforts to differentiate the commodity product 
A) a competitor may focus on the same market segment 
B) equipment may quickly become obsolete 
C) a firm's means of differentiation may no longer provide value to the customer 
D) a firm may fail to detect competitors' efforts to differentiate the commodity product

Question 10

The integration of a cost leadership strategy and a differentiation strategy leads to a competitive advantage because:

Accepted Answer

A) managers have greater flexibility in the actions they can take 
B) different firms need different types of strategies to be successful 
C) firms can offer some differentiated features at a relatively low cost 
D) one strategy is not enough for most large firms 
A) managers have greater flexibility in the actions they can take 
B) different firms need different types of strategies to be successful 
C) firms can offer some differentiated features at a relatively low cost 
D) one strategy is not enough for most large firms

Question 11

A business-level strategy is an integrated and coordinated set of capabilities and resources designed to exploit core competencies and gain a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 12

Describe a cost leadership strategy and its risks.

Accepted Answer

In a cost leadership strategy, a produce

Question 13

A cost leadership strategy is a valuable defence against rivals when competing on the basis of price.

Accepted Answer

A) True 
 B)False

Question 14

A firm that successfully implements the cost leadership strategy would expect:

Accepted Answer

A) to compete based primarily on price 
B) to constantly face challenges from a steady stream of new entrants to the industry 
C) to be able to fend off the challenge of product substitutes 
D) to focus on its own cost structure, but not its competitors' cost structures 
A) to compete based primarily on price 
B) to constantly face challenges from a steady stream of new entrants to the industry 
C) to be able to fend off the challenge of product substitutes 
D) to focus on its own cost structure, but not its competitors' cost structures

Question 15

When implementing a focus strategy, a firm seeks:

Accepted Answer

A) to be the lowest-cost producer in an industry 
B) to offer products with unique features for which customers will pay a premium 
C) to avoid being stuck in the middle 
D) to serve the specialised needs of a market segment 
A) to be the lowest-cost producer in an industry 
B) to offer products with unique features for which customers will pay a premium 
C) to avoid being stuck in the middle 
D) to serve the specialised needs of a market segment

Question 16

An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage is a definition of:

Accepted Answer

A) core competencies 
B) sustained competitive advantage 
C) strategic mission 
D) a business-level strategy 
A) core competencies 
B) sustained competitive advantage 
C) strategic mission 
D) a business-level strategy

Question 17

The benefit of a flexible manufacturing system is that:

Accepted Answer

A) the lot size needed to manufacture a firm's product efficiently is reduced 
B) workers are no longer needed in the numbers required by standard manufacturing systems 
C) the technological advantage of the company is expanded 
D) a company is further enabled to shut down during periods of economic decline 
A) the lot size needed to manufacture a firm's product efficiently is reduced 
B) workers are no longer needed in the numbers required by standard manufacturing systems 
C) the technological advantage of the company is expanded 
D) a company is further enabled to shut down during periods of economic decline

Question 18

Firms' relationships with customers are characterised by three dimensions.What are these dimensions? Briefly describe each.

Accepted Answer

The three dimensions of firms' relations

Question 19

Business-level strategies detail commitments and actions taken to provide value to customers and to gain competitive advantage by exploiting core competencies in:

Accepted Answer

A) the selection of industries in which the firm will compete 
B) specific and individual product markets 
C) specific and individual functional departments 
D) specific plant locations 
A) the selection of industries in which the firm will compete 
B) specific and individual product markets 
C) specific and individual functional departments 
D) specific plant locations

Question 20

A cost leader does not need to be concerned about competitors imitating its strategy.

Accepted Answer

A) True 
 B)False

The richness dimension of relationships with customers is concerned with the depth and detail of the one-way flow of information between the firm and the customer.

While there are constraints that limit the number of firms that adopt the focused cost leadership strategy, this strategy inherently performs better than the cost leadership strategy.

When employing a cost leadership strategy, which factors allow a firm to earn above-average returns in spite of strong competitive forces?

A differentiation strategy provides products that customers perceive as having:

A flexible manufacturing system is a:

The differentiation strategy calls for a firm to provide products that:

________ are three sources of strategic flexibility that facilitate the use of the integrated strategy.

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

One risk of the differentiation strategy is that:

The integration of a cost leadership strategy and a differentiation strategy leads to a competitive advantage because:

A business-level strategy is an integrated and coordinated set of capabilities and resources designed to exploit core competencies and gain a competitive advantage.

Describe a cost leadership strategy and its risks.

A cost leadership strategy is a valuable defence against rivals when competing on the basis of price.

A firm that successfully implements the cost leadership strategy would expect:

When implementing a focus strategy, a firm seeks:

An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage is a definition of:

The benefit of a flexible manufacturing system is that:

Firms' relationships with customers are characterised by three dimensions.What are these dimensions? Briefly describe each.

Business-level strategies detail commitments and actions taken to provide value to customers and to gain competitive advantage by exploiting core competencies in:

A cost leader does not need to be concerned about competitors imitating its strategy.

Strategic Management and Strategic Competitiveness

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

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

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Acquisition and Restructuring Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organisational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 4: Business-Level Strategy

The richness dimension of relationships with customers is concerned with the depth and detail of the one-way flow of information between the firm and the customer.

While there are constraints that limit the number of firms that adopt the focused cost leadership strategy, this strategy inherently performs better than the cost leadership strategy.

When employing a cost leadership strategy, which factors allow a firm to earn above-average returns in spite of strong competitive forces?

A differentiation strategy provides products that customers perceive as having:

A flexible manufacturing system is a:

The differentiation strategy calls for a firm to provide products that:

________ are three sources of strategic flexibility that facilitate the use of the integrated strategy.

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

One risk of the differentiation strategy is that:

The integration of a cost leadership strategy and a differentiation strategy leads to a competitive advantage because:

A business-level strategy is an integrated and coordinated set of capabilities and resources designed to exploit core competencies and gain a competitive advantage.

Describe a cost leadership strategy and its risks.

A cost leadership strategy is a valuable defence against rivals when competing on the basis of price.

A firm that successfully implements the cost leadership strategy would expect:

When implementing a focus strategy, a firm seeks:

An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage is a definition of:

The benefit of a flexible manufacturing system is that:

Firms' relationships with customers are characterised by three dimensions.What are these dimensions? Briefly describe each.

Business-level strategies detail commitments and actions taken to provide value to customers and to gain competitive advantage by exploiting core competencies in:

A cost leader does not need to be concerned about competitors imitating its strategy.

Strategic Management and Strategic Competitiveness

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

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

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Acquisition and Restructuring Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organisational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters