Question 1

Which of the following is not a reason for the possible erosion of company competitive advantage?

Accepted Answer

A) rapid change in technology 
B) globalization 
C) actions by rivals from within and outside of the industry 
D) company commitment to innovation 
A) rapid change in technology 
B) globalization 
C) actions by rivals from within and outside of the industry 
D) company commitment to innovation D

Question 2

An overall low-cost position protects a firm against rivalry from competitors because ________ allow a firm to earn returns even if its competitors eroded their profits through intense rivalry.

Accepted Answer

A) higher costs 
B) higher prices 
C) lower costs 
D) lower prices 
A) higher costs 
B) higher prices 
C) lower costs 
D) lower prices C

Question 3

Which of the following is a risk (or potential pitfall)of cost leadership?

Accepted Answer

A) Cost cutting in one area of the value chain might increase costs in another. 
B) Attempts to stay ahead of the competition may lead to gold plating. 
C) Cost differences increase as the market matures. 
D) Producers are more able to withstand increases in supplier costs. 
A) Cost cutting in one area of the value chain might increase costs in another. 
B) Attempts to stay ahead of the competition may lead to gold plating. 
C) Cost differences increase as the market matures. 
D) Producers are more able to withstand increases in supplier costs. A

Question 4

A firm can achieve differentiation through all the following means except

Accepted Answer

A) improving brand image. 
B) offering lower prices to frequent customers. 
C) better customer service. 
D) adding additional product features. 
A) improving brand image. 
B) offering lower prices to frequent customers. 
C) better customer service. 
D) adding additional product features.

Question 5

Underestimating expenses associated with coordinating value-creating activities in the extended value chain can be a result of ________ integration of cost leadership and differentiation.

Accepted Answer

A) good 
B) poor 
C) intentional 
D) structured 
A) good 
B) poor 
C) intentional 
D) structured

Question 6

A low-cost position permits buyers to exert power to drive ________ prices only to the level of the next most efficient producer.

Accepted Answer

A) up 
B) down 
C) increasing 
D) decreasing 
A) up 
B) down 
C) increasing 
D) decreasing

Question 7

A business that strives for a low-cost advantage must attain a(n)________ cost advantage over rivals.

Accepted Answer

A) relative 
B) evolutionary 
C) absolute 
D) potential 
A) relative 
B) evolutionary 
C) absolute 
D) potential

Question 8

A ________ can be defined as the total profits in an industry at all points along the industry value chain.

Accepted Answer

A) profit maximizer 
B) revenue enhancer 
C) profit pool 
D) profit outsourcing 
A) profit maximizer 
B) revenue enhancer 
C) profit pool 
D) profit outsourcing

Question 9

Two-sided or platform markets are an emerging trend according to the textbook authors.Choose an example of an existing platform market and explain how this firm positions itself to become the dominant player linking suppliers and customers.

Accepted Answer

Successful platform firms create a busin

Question 10

With experience,unit costs of production decline as ________ increases in most industries.

Accepted Answer

A) costs 
B) volume 
C) output 
D) price 
A) costs 
B) volume 
C) output 
D) price

Question 11

Most turnarounds require a firm to carefully analyze its relevant environments.The ________ analysis leads to identification of market segments or customer groups that may still find the product attractive.

Accepted Answer

A) external 
B) internal 
C) global 
D) environmental 
A) external 
B) internal 
C) global 
D) environmental

Question 12

BlackBerry lost its competitive advantage by 2016 because it

Accepted Answer

A) did not deliver innovations to respond to changing market demand. 
B) developed a highly performant just-in-time delivery system. 
C) did not reward its employees. 
D) let suppliers have dominant power. 
A) did not deliver innovations to respond to changing market demand. 
B) developed a highly performant just-in-time delivery system. 
C) did not reward its employees. 
D) let suppliers have dominant power.

Question 13

The five-forces model suggests that with intense competition an overall low-cost position will not enable a firm to achieve above-average returns.

Accepted Answer

A) True 
 B)False

Question 14

Marlin Steel Wire Products is a manufacturer of commodity wire products out of Baltimore,MD.Marlin has many rivals based in China and other emerging markets.The company cannot compete on labor costs so it used a ________ strategy to automate its production and now specializes in high-end products.

Accepted Answer

A) differentiation 
B) overall cost leadership 
C) focus strategy 
D) low cost leadership 
A) differentiation 
B) overall cost leadership 
C) focus strategy 
D) low cost leadership

Question 15

Combination strategies,such as integrating overall low cost and differentiation,makes it easier for rivals to duplicate or imitate because it is harder for the primary firm to provide value.

Accepted Answer

A) True 
 B)False

Question 16

In the ________ stage of the industry life cycle,there are many segments,competition is very intense,and the emphasis on process design is high.

Accepted Answer

A) growth 
B) introduction 
C) decline 
D) maturity 
A) growth 
B) introduction 
C) decline 
D) maturity

Question 17

As markets mature,

Accepted Answer

A) costs continue to increase. 
B) application for patents increase. 
C) differentiation opportunities increase. 
D) there is increasing emphasis on efficiency. 
A) costs continue to increase. 
B) application for patents increase. 
C) differentiation opportunities increase. 
D) there is increasing emphasis on efficiency.

Question 18

Piecemeal productivity improvements during a turnaround typically do not involve

Accepted Answer

A) business process reengineering. 
B) increased capacity utilization. 
C) benchmarking. 
D) expansion of company product market scope. 
A) business process reengineering. 
B) increased capacity utilization. 
C) benchmarking. 
D) expansion of company product market scope.

Question 19

Zulily protects itself from buyer power and intense rivalry from competitors by

Accepted Answer

A) increasing the bargaining power of its customers. 
B) paying close attention to costs. 
C) increasing costs. 
D) increasing the buyer power. 
A) increasing the bargaining power of its customers. 
B) paying close attention to costs. 
C) increasing costs. 
D) increasing the buyer power.

Question 20

Given the attractiveness of premium pricing during the growth stage of the market life cycle,managers should emphasize short-term results to increase profits.

Accepted Answer

A) True 
 B)False

Which of the following is not a reason for the possible erosion of company competitive advantage?

An overall low-cost position protects a firm against rivalry from competitors because ________ allow a firm to earn returns even if its competitors eroded their profits through intense rivalry.

Which of the following is a risk (or potential pitfall)of cost leadership?

A firm can achieve differentiation through all the following means except

Underestimating expenses associated with coordinating value-creating activities in the extended value chain can be a result of ________ integration of cost leadership and differentiation.

A low-cost position permits buyers to exert power to drive ________ prices only to the level of the next most efficient producer.

A business that strives for a low-cost advantage must attain a(n)________ cost advantage over rivals.

A ________ can be defined as the total profits in an industry at all points along the industry value chain.

Two-sided or platform markets are an emerging trend according to the textbook authors.Choose an example of an existing platform market and explain how this firm positions itself to become the dominant player linking suppliers and customers.

With experience,unit costs of production decline as ________ increases in most industries.

Most turnarounds require a firm to carefully analyze its relevant environments.The ________ analysis leads to identification of market segments or customer groups that may still find the product attractive.

BlackBerry lost its competitive advantage by 2016 because it

The five-forces model suggests that with intense competition an overall low-cost position will not enable a firm to achieve above-average returns.

Marlin Steel Wire Products is a manufacturer of commodity wire products out of Baltimore,MD.Marlin has many rivals based in China and other emerging markets.The company cannot compete on labor costs so it used a ________ strategy to automate its production and now specializes in high-end products.

Combination strategies,such as integrating overall low cost and differentiation,makes it easier for rivals to duplicate or imitate because it is harder for the primary firm to provide value.

In the ________ stage of the industry life cycle,there are many segments,competition is very intense,and the emphasis on process design is high.

As markets mature,

Piecemeal productivity improvements during a turnaround typically do not involve

Zulily protects itself from buyer power and intense rivalry from competitors by

Given the attractiveness of premium pricing during the growth stage of the market life cycle,managers should emphasize short-term results to increase profits.

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 5: Business-Level Strategy: Creating and Sustaining Competitive Advantages

Which of the following is not a reason for the possible erosion of company competitive advantage?

An overall low-cost position protects a firm against rivalry from competitors because ________ allow a firm to earn returns even if its competitors eroded their profits through intense rivalry.

Which of the following is a risk (or potential pitfall)of cost leadership?

A firm can achieve differentiation through all the following means except

Underestimating expenses associated with coordinating value-creating activities in the extended value chain can be a result of ________ integration of cost leadership and differentiation.

A low-cost position permits buyers to exert power to drive ________ prices only to the level of the next most efficient producer.

A business that strives for a low-cost advantage must attain a(n)________ cost advantage over rivals.

A ________ can be defined as the total profits in an industry at all points along the industry value chain.

Two-sided or platform markets are an emerging trend according to the textbook authors.Choose an example of an existing platform market and explain how this firm positions itself to become the dominant player linking suppliers and customers.

With experience,unit costs of production decline as ________ increases in most industries.

Most turnarounds require a firm to carefully analyze its relevant environments.The ________ analysis leads to identification of market segments or customer groups that may still find the product attractive.

BlackBerry lost its competitive advantage by 2016 because it

The five-forces model suggests that with intense competition an overall low-cost position will not enable a firm to achieve above-average returns.

Marlin Steel Wire Products is a manufacturer of commodity wire products out of Baltimore,MD.Marlin has many rivals based in China and other emerging markets.The company cannot compete on labor costs so it used a ________ strategy to automate its production and now specializes in high-end products.

Combination strategies,such as integrating overall low cost and differentiation,makes it easier for rivals to duplicate or imitate because it is harder for the primary firm to provide value.

In the ________ stage of the industry life cycle,there are many segments,competition is very intense,and the emphasis on process design is high.

As markets mature,

Piecemeal productivity improvements during a turnaround typically do not involve

Zulily protects itself from buyer power and intense rivalry from competitors by

Given the attractiveness of premium pricing during the growth stage of the market life cycle,managers should emphasize short-term results to increase profits.

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters