Question 1

Describe the three strategies of competitive advantage.

Accepted Answer

Competitive advantage derives from a fir

Question 2

Define value chain analysis.Discuss the two activities of value chain analysis.

Accepted Answer

Value chain analysis is a systematic way

Question 3

Which of the following is one of the generic strategies through which a manager can create a firm's competitive advantage?

Accepted Answer

A)  Global strategy 
B)  Market-entry strategy 
C)  Transnational strategy 
D)  Differentiation strategy 
A)  Global strategy 
B)  Market-entry strategy 
C)  Transnational strategy 
D)  Differentiation strategy

Question 4

Supply-side economies of scale arise:

Accepted Answer

A)  when a buyer's willingness to pay for a product increases. 
B)  when the demand for a firm's product keeps fluctuating. 
C)  when the number of buyers for a firm's product decreases. 
D)  when a firm manufactures products in high volumes. 
A)  when a buyer's willingness to pay for a product increases. 
B)  when the demand for a firm's product keeps fluctuating. 
C)  when the number of buyers for a firm's product decreases. 
D)  when a firm manufactures products in high volumes.

Question 5

Rivalry among existing competitors is more when:

Accepted Answer

A)  fixed costs are low,and marginal costs are high. 
B)  exit barriers are low. 
C)  industry growth is slow. 
D)  the product is not perishable. 
A)  fixed costs are low,and marginal costs are high. 
B)  exit barriers are low. 
C)  industry growth is slow. 
D)  the product is not perishable.

Question 6

Which of the following belongs to the primary activities of a firm's value chain?

Accepted Answer

A)  Technological development 
B)  Human resource management 
C)  Firm infrastructure 
D)  Marketing and sales 
A)  Technological development 
B)  Human resource management 
C)  Firm infrastructure 
D)  Marketing and sales

Question 7

The 5-Forces Model is one of the most important tools for evaluating the attractiveness of industries.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?

Accepted Answer

A)  Supply-side economies of scale 
B)  Restrictive government policy 
C)  Demand-side benefits of scale 
D)  Customer switching costs 
A)  Supply-side economies of scale 
B)  Restrictive government policy 
C)  Demand-side benefits of scale 
D)  Customer switching costs

Question 9

Outline the features of SWOT analysis.

Accepted Answer

One tool that has been useful in helping

Question 10

Which of the following statements,if true,is a characteristic of a powerful customer group?

Accepted Answer

A)  The group purchases in lesser volumes relative to the supplier 
B)  The industry's products are clearly differentiated 
C)  Buyers can integrate backwards to produce the industry's product 
D)  Buyers face high switching costs in changing vendors 
A)  The group purchases in lesser volumes relative to the supplier 
B)  The industry's products are clearly differentiated 
C)  Buyers can integrate backwards to produce the industry's product 
D)  Buyers face high switching costs in changing vendors

Question 11

Which of the following refers to the cost savings achieved when the volume of a product produced by a firm enables it to reduce per unit cost?

Accepted Answer

A)  Economies of scale 
B)  Return on equity 
C)  Demand-side benefits scale 
D)  Tangible resources 
A)  Economies of scale 
B)  Return on equity 
C)  Demand-side benefits scale 
D)  Tangible resources

Question 12

Which of the following statements best describes competitive advantage?

Accepted Answer

A)  It refers to the pressure a supplier or buyer can exert on a company. 
B)  It is the advantage that occurs when a firm offers products to all customers at higher prices. 
C)  It derives from a firm's ability to create value for its customers that exceeds the cost of producing the product or service. 
D)  It is the capability to identify and react to changes in the external environment and to mobilize internal resources to deal with those changes. 
A)  It refers to the pressure a supplier or buyer can exert on a company. 
B)  It is the advantage that occurs when a firm offers products to all customers at higher prices. 
C)  It derives from a firm's ability to create value for its customers that exceeds the cost of producing the product or service. 
D)  It is the capability to identify and react to changes in the external environment and to mobilize internal resources to deal with those changes.

Question 13

Which of the following statements is true about the strategies of competitive advantage?

Accepted Answer

A)  A company that engages in a differentiation strategy aims to provide a product at as low a price as possible to a broad audience. 
B)  In a low-cost focus strategy,a firm attempts to target customers with special needs who have been underserved historically. 
C)  In a differentiation strategy,a firm seeks to be unique in its industry along a group of dimensions that are valued by consumers. 
D)  In a cost leadership strategy,the manager must pursue just a single source of lowcost
Advantage to compete effectively. 
A)  A company that engages in a differentiation strategy aims to provide a product at as low a price as possible to a broad audience. 
B)  In a low-cost focus strategy,a firm attempts to target customers with special needs who have been underserved historically. 
C)  In a differentiation strategy,a firm seeks to be unique in its industry along a group of dimensions that are valued by consumers. 
D)  In a cost leadership strategy,the manager must pursue just a single source of lowcost
Advantage to compete effectively.

Question 14

First-mover advantage occurs when a firm is first to offer desirable products or services that secure customer loyalty.

Accepted Answer

A) True 
 B)False

Question 15

_____ analysis separates a firm into its various activities to better understand total costs in the system and potential sources of firm differentiation.

Accepted Answer

A)  SWOT 
B)  Value chain 
C)  Stakeholder 
D)  Trend 
A)  SWOT 
B)  Value chain 
C)  Stakeholder 
D)  Trend

Question 16

Which of the following firm's can be referred to as being "stuck in the middle"?

Accepted Answer

A)  A firm that masters both low-cost and differentiation focused approach 
B)  A firm that employs only a single strategy to achieve competitive advantage 
C)  A firm that engages in numerous strategies but fails to master any one 
D)  A firm that is in the second stage of strategy formulation 
A)  A firm that masters both low-cost and differentiation focused approach 
B)  A firm that employs only a single strategy to achieve competitive advantage 
C)  A firm that engages in numerous strategies but fails to master any one 
D)  A firm that is in the second stage of strategy formulation

Question 17

Which of the following belongs to the support activities of a firm's value chain?

Accepted Answer

A)  Marketing 
B)  Procurement 
C)  Logistics 
D)  Service 
A)  Marketing 
B)  Procurement 
C)  Logistics 
D)  Service

Question 18

Which of the following statements is a drawback of Porter's 5-forces model?

Accepted Answer

A)  It cannot be used to evaluate the structural components of an industry. 
B)  This tool is particularly not useful in helping managers decide where to focus. 
C)  Evaluating the attractiveness of industries and developing business-level strategy is seldom possible. 
D)  The 5-forces model typically looks at an industry at one point in time. 
A)  It cannot be used to evaluate the structural components of an industry. 
B)  This tool is particularly not useful in helping managers decide where to focus. 
C)  Evaluating the attractiveness of industries and developing business-level strategy is seldom possible. 
D)  The 5-forces model typically looks at an industry at one point in time.

Question 19

Which of the following is one of the fundamental questions a manager must answer in developing a business-level strategy?

Accepted Answer

A)  Who do we serve? 
B)  Who are our competitors? 
C)  What are our objectives? 
D)  Where to do business? 
A)  Who do we serve? 
B)  Who are our competitors? 
C)  What are our objectives? 
D)  Where to do business?

Question 20

Managers must view the firm's value chain in the context of a larger value system that includes the value chains of suppliers and distribution channels.

Accepted Answer

A) True 
 B)False

Describe the three strategies of competitive advantage.

Define value chain analysis.Discuss the two activities of value chain analysis.

Which of the following is one of the generic strategies through which a manager can create a firm's competitive advantage?

Supply-side economies of scale arise:

Rivalry among existing competitors is more when:

Which of the following belongs to the primary activities of a firm's value chain?

The 5-Forces Model is one of the most important tools for evaluating the attractiveness of industries.

Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?

Outline the features of SWOT analysis.

Which of the following statements,if true,is a characteristic of a powerful customer group?

Which of the following refers to the cost savings achieved when the volume of a product produced by a firm enables it to reduce per unit cost?

Which of the following statements best describes competitive advantage?

Which of the following statements is true about the strategies of competitive advantage?

First-mover advantage occurs when a firm is first to offer desirable products or services that secure customer loyalty.

_____ analysis separates a firm into its various activities to better understand total costs in the system and potential sources of firm differentiation.

Which of the following firm's can be referred to as being "stuck in the middle"?

Which of the following belongs to the support activities of a firm's value chain?

Which of the following statements is a drawback of Porter's 5-forces model?

Which of the following is one of the fundamental questions a manager must answer in developing a business-level strategy?

Managers must view the firm's value chain in the context of a larger value system that includes the value chains of suppliers and distribution channels.

Introduction to Management

The Global Business Environment

Ethics and Corporate Social Responsibility

Introduction to Strategy

Corporate-Level Strategy

Organizational Design

Organizational Culture

Managing Human Capital

Performance Management

Organizational Change

Leadership in Organizations

Becoming a Leader: Knowing Yourself

Power and Influence

Decision Making

Conflict and Negotiation

Leading Teams

Motivation

Communication

Networking

Filters

Exam 5: Business-Level Strategy

Describe the three strategies of competitive advantage.

Define value chain analysis.Discuss the two activities of value chain analysis.

Which of the following is one of the generic strategies through which a manager can create a firm's competitive advantage?

Supply-side economies of scale arise:

Rivalry among existing competitors is more when:

Which of the following belongs to the primary activities of a firm's value chain?

The 5-Forces Model is one of the most important tools for evaluating the attractiveness of industries.

Which of the following barriers to entry occurs when a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases?

Outline the features of SWOT analysis.

Which of the following statements,if true,is a characteristic of a powerful customer group?

Which of the following refers to the cost savings achieved when the volume of a product produced by a firm enables it to reduce per unit cost?

Which of the following statements best describes competitive advantage?

Which of the following statements is true about the strategies of competitive advantage?

First-mover advantage occurs when a firm is first to offer desirable products or services that secure customer loyalty.

_____ analysis separates a firm into its various activities to better understand total costs in the system and potential sources of firm differentiation.

Which of the following firm's can be referred to as being "stuck in the middle"?

Which of the following belongs to the support activities of a firm's value chain?

Which of the following statements is a drawback of Porter's 5-forces model?

Which of the following is one of the fundamental questions a manager must answer in developing a business-level strategy?

Managers must view the firm's value chain in the context of a larger value system that includes the value chains of suppliers and distribution channels.

Introduction to Management

The Global Business Environment

Ethics and Corporate Social Responsibility

Introduction to Strategy

Corporate-Level Strategy

Organizational Design

Organizational Culture

Managing Human Capital

Performance Management

Organizational Change

Leadership in Organizations

Becoming a Leader: Knowing Yourself

Power and Influence

Decision Making

Conflict and Negotiation

Leading Teams

Motivation

Communication

Networking

Filters