Question 1

Rivals would find it difficult to challenge Atlas Door in the short run because of

Accepted Answer

A) strong customer loyalty. 
B) low barriers to entry. 
C) high threat of substitution. 
D) low buyer switching costs. 
A) strong customer loyalty. 
B) low barriers to entry. 
C) high threat of substitution. 
D) low buyer switching costs.

Question 2

Atlas Door created competitive advantages in overall low cost and differentiation by creating ________ among value-chain activities.

Accepted Answer

A) substitutes 
B) advantages 
C) disadvantages 
D) linkages 
A) substitutes 
B) advantages 
C) disadvantages 
D) linkages

Question 3

What is a focus strategy? Provide an example where this has been implemented successfully.

Accepted Answer

A focus strategy is based on the choice

Question 4

Caterpillar uses data analytics to differentiate itself from competitors by providing information services.

Accepted Answer

A) True 
 B)False

Question 5

Few turnarounds require firms to analyze both the external and internal environments relevant to their firm.

Accepted Answer

A) True 
 B)False

Question 6

Most turnarounds require a firm to carefully analyze its relevant environments.________ analysis results in actions aimed at reduced costs and higher efficiency.

Accepted Answer

A) External 
B) Internal 
C) Global 
D) Environmental 
A) External 
B) Internal 
C) Global 
D) Environmental

Question 7

An overall low-cost position enables a firm to achieve ________ returns despite strong competition.

Accepted Answer

A) below average 
B) average 
C) no 
D) above average 
A) below average 
B) average 
C) no 
D) above average

Question 8

Atlas Door relies on technologies that are rather well known and non-proprietary.This opens it up to the potential of

Accepted Answer

A) imitation by rivals. 
B) customer abandonment. 
C) increased supplier power. 
D) government regulation. 
A) imitation by rivals. 
B) customer abandonment. 
C) increased supplier power. 
D) government regulation.

Question 9

Which of the following is most often true of mature markets?

Accepted Answer

A) Some competitors enjoy a significant operating advantage due to increasing experience effects. 
B) The market supports premium pricing,which attracts additional competitors. 
C) Advantages that cannot be duplicated by other competitors are difficult to achieve. 
D) The magnitude of pricing differences and product differentiation is larger than in the growth stage. 
A) Some competitors enjoy a significant operating advantage due to increasing experience effects. 
B) The market supports premium pricing,which attracts additional competitors. 
C) Advantages that cannot be duplicated by other competitors are difficult to achieve. 
D) The magnitude of pricing differences and product differentiation is larger than in the growth stage.

Question 10

Improving business processes by reengineering them,benchmarking specific activities against industry leaders,encouraging employee input to identify excess costs,increasing capacity utilization,and improving employee productivity lead to a significant overall gain.These are examples of which turnaround strategy used by successful companies?

Accepted Answer

A) asset and cost surgery 
B) selective product and market pruning 
C) piecemeal productivity improvements 
D) global expansion 
A) asset and cost surgery 
B) selective product and market pruning 
C) piecemeal productivity improvements 
D) global expansion

Question 11

Barnes and Noble lost its market share in book retailing to Amazon.It tried to regain market share by offering a similar electronic reader,the Nook,to the Amazon Kindle series.This demonstrates that Barnes and Noble lacked

Accepted Answer

A) a short-term strategy. 
B) a company-wide strategy. 
C) a sustainable competitive advantage. 
D) good suppliers. 
A) a short-term strategy. 
B) a company-wide strategy. 
C) a sustainable competitive advantage. 
D) good suppliers.

Question 12

A platform business is like a matchmaker in that it can bring together buyers and sellers.An example of a successful platform provider is Facebook.By attracting and retaining users through expanding services it differentiates itself from more narrowly-focused competitors such as Twitter.

Accepted Answer

A) True 
 B)False

Question 13

A differentiation strategy enables a business to address the five competitive forces by

Accepted Answer

A) having brand-loyal customers become more sensitive to prices. 
B) increasing economies of scale. 
C) providing protection against rivalry. 
D) serving a broader market segment. 
A) having brand-loyal customers become more sensitive to prices. 
B) increasing economies of scale. 
C) providing protection against rivalry. 
D) serving a broader market segment.

Question 14

Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy?

Accepted Answer

A) Firms that target too large a market that causes unit costs to increase. 
B) Firms that underestimate the expenses associated with coordinating value-creating activities in the extended value chain. 
C) Firms that fail to attain both strategies may end up with neither and become stuck-in-the-middle. 
D) Firms that miscalculate sources of revenue and profit pools in the company industry. 
A) Firms that target too large a market that causes unit costs to increase. 
B) Firms that underestimate the expenses associated with coordinating value-creating activities in the extended value chain. 
C) Firms that fail to attain both strategies may end up with neither and become stuck-in-the-middle. 
D) Firms that miscalculate sources of revenue and profit pools in the company industry.

Question 15

Which statement regarding competitive advantages is true?

Accepted Answer

A) With an overall cost leadership strategy,firms need not be concerned with parity on differentiation. 
B) In the long run,a business with one or more competitive advantages is probably destined to earn normal profits. 
C) If several competitors pursue similar differentiation tactics,they may all be perceived as equals in the mind of the consumer. 
D) Attaining multiple types of competitive advantage is a recipe for failure. 
A) With an overall cost leadership strategy,firms need not be concerned with parity on differentiation. 
B) In the long run,a business with one or more competitive advantages is probably destined to earn normal profits. 
C) If several competitors pursue similar differentiation tactics,they may all be perceived as equals in the mind of the consumer. 
D) Attaining multiple types of competitive advantage is a recipe for failure.

Question 16

Company competitive advantages can be eroded by all the following except

Accepted Answer

A) rapid changes in technology. 
B) globalization. 
C) actions by rivals within the industry. 
D) actions by workers outside of the industry. 
A) rapid changes in technology. 
B) globalization. 
C) actions by rivals within the industry. 
D) actions by workers outside of the industry.

Question 17

Andersen Windows lowered costs,enhanced quality and variety,and improved its response time to customers by

Accepted Answer

A) creating a new paper-based catalog. 
B) creating an interactive computer version of its paper catalogs. 
C) creating an integrated computer system of catalogs,products,orders,and manufacturing. 
D) creating a manufacturing system for ordering parts. 
A) creating a new paper-based catalog. 
B) creating an interactive computer version of its paper catalogs. 
C) creating an integrated computer system of catalogs,products,orders,and manufacturing. 
D) creating a manufacturing system for ordering parts.

Question 18

An overall ________ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

Accepted Answer

A) differentiation 
B) low-cost 
C) focused 
D) high-cost 
A) differentiation 
B) low-cost 
C) focused 
D) high-cost

Question 19

One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.Experience effects are achieved by

Accepted Answer

A) spreading out a given expense or investment over a greater volume. 
B) hiring more experienced personnel. 
C) repeating a process until a task becomes easier. 
D) competing in an industry for a long time. 
A) spreading out a given expense or investment over a greater volume. 
B) hiring more experienced personnel. 
C) repeating a process until a task becomes easier. 
D) competing in an industry for a long time.

Question 20

In a given market,key technology no longer has patent protection,experience is not an advantage,and there is a growing need to compete on price.What stage of its life cycle is the market in?

Accepted Answer

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

Rivals would find it difficult to challenge Atlas Door in the short run because of

Atlas Door created competitive advantages in overall low cost and differentiation by creating ________ among value-chain activities.

What is a focus strategy? Provide an example where this has been implemented successfully.

Caterpillar uses data analytics to differentiate itself from competitors by providing information services.

Few turnarounds require firms to analyze both the external and internal environments relevant to their firm.

Most turnarounds require a firm to carefully analyze its relevant environments.________ analysis results in actions aimed at reduced costs and higher efficiency.

An overall low-cost position enables a firm to achieve ________ returns despite strong competition.

Atlas Door relies on technologies that are rather well known and non-proprietary.This opens it up to the potential of

Which of the following is most often true of mature markets?

Barnes and Noble lost its market share in book retailing to Amazon.It tried to regain market share by offering a similar electronic reader,the Nook,to the Amazon Kindle series.This demonstrates that Barnes and Noble lacked

A platform business is like a matchmaker in that it can bring together buyers and sellers.An example of a successful platform provider is Facebook.By attracting and retaining users through expanding services it differentiates itself from more narrowly-focused competitors such as Twitter.

A differentiation strategy enables a business to address the five competitive forces by

Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy?

Which statement regarding competitive advantages is true?

Company competitive advantages can be eroded by all the following except

Andersen Windows lowered costs,enhanced quality and variety,and improved its response time to customers by

An overall ________ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.Experience effects are achieved by

In a given market,key technology no longer has patent protection,experience is not an advantage,and there is a growing need to compete on price.What stage of its life cycle is the market in?

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

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

Rivals would find it difficult to challenge Atlas Door in the short run because of

Atlas Door created competitive advantages in overall low cost and differentiation by creating ________ among value-chain activities.

What is a focus strategy? Provide an example where this has been implemented successfully.

Caterpillar uses data analytics to differentiate itself from competitors by providing information services.

Few turnarounds require firms to analyze both the external and internal environments relevant to their firm.

Most turnarounds require a firm to carefully analyze its relevant environments.________ analysis results in actions aimed at reduced costs and higher efficiency.

An overall low-cost position enables a firm to achieve ________ returns despite strong competition.

Atlas Door relies on technologies that are rather well known and non-proprietary.This opens it up to the potential of

Which of the following is most often true of mature markets?

Barnes and Noble lost its market share in book retailing to Amazon.It tried to regain market share by offering a similar electronic reader,the Nook,to the Amazon Kindle series.This demonstrates that Barnes and Noble lacked

A platform business is like a matchmaker in that it can bring together buyers and sellers.An example of a successful platform provider is Facebook.By attracting and retaining users through expanding services it differentiates itself from more narrowly-focused competitors such as Twitter.

A differentiation strategy enables a business to address the five competitive forces by

Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy?

Which statement regarding competitive advantages is true?

Company competitive advantages can be eroded by all the following except

Andersen Windows lowered costs,enhanced quality and variety,and improved its response time to customers by

An overall ________ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.Experience effects are achieved by

In a given market,key technology no longer has patent protection,experience is not an advantage,and there is a growing need to compete on price.What stage of its life cycle is the market in?

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