Question 1

A manufacturing business pursuing cost leadership is likely to

Accepted Answer

A)  focus on a narrow market segment. 
B)  use advertising to build brand image. 
C)  put heavy emphasis on product engineering. 
D)  rely on experience effects to raise efficiency. 
A)  focus on a narrow market segment. 
B)  use advertising to build brand image. 
C)  put heavy emphasis on product engineering. 
D)  rely on experience effects to raise efficiency. D

Question 2

Improving business processes by reengineering them, benchmarking specific activities against industry leaders, encouraging employee input to identify excess costs, increasing capacityutilization, 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 C

Question 3

The experience curve is a factor central to an overall cost leadership strategy and refers to how business learns to increase costs as it gains experience with production processes.

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

A pitfall of integrated overall cost leadership and differentiation is underestimating the expenses associated with coordinating value-creating activities in the extended value chain.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

Value-chain support activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure)characterize which generic strategy?

Accepted Answer

A)  overall cost leadership 
B)  differentiation focus 
C)  differentiation 
D)  stuck-in-the middle 
A)  overall cost leadership 
B)  differentiation focus 
C)  differentiation 
D)  stuck-in-the middle

Question 9

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 10

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 findtheproduct attractive.

Accepted Answer

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

Question 11

Which of the following is not a potential pitfall of a differentiation strategy?

Accepted Answer

A)  Uniqueness that is not valuable. 
B)  The price premium is too high. 
C)  All rivals share a common input or raw material. 
D)  Perceptions of differentiation may vary between buyers and sellers. 
A)  Uniqueness that is not valuable. 
B)  The price premium is too high. 
C)  All rivals share a common input or raw material. 
D)  Perceptions of differentiation may vary between buyers and sellers.

Question 12

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

Atlas Door tightly controlled logistics so that it always shipped only fully complete orders to construction sites. In regard to the five forces model, which of the following is a reason this might give them competitive advantage?

Accepted Answer

A)  It helps to reduce the threat of new entrants. 
B)  It created low entry barriers for new entrants. 
C)  It created a high threat of substitution. 
D)  It gave more power to buyers. 
A)  It helps to reduce the threat of new entrants. 
B)  It created low entry barriers for new entrants. 
C)  It created a high threat of substitution. 
D)  It gave more power to buyers.

Question 17

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 intenserivalry.

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

Question 18

Primark, an Irish clothing retailer, uses an overall cost leadership strategy. This could fail if it

Accepted Answer

A)  maintains parity with competitors on low cost. 
B)  cannot maintain parity on differentiation dimensions requested by customers. 
C)  exceeds customer expectations. 
D)  increases its sales prices while maintaining competitor parity. 
A)  maintains parity with competitors on low cost. 
B)  cannot maintain parity on differentiation dimensions requested by customers. 
C)  exceeds customer expectations. 
D)  increases its sales prices while maintaining competitor parity.

Question 19

Factors that lead to a low-cost position also provide substantial entry barriers to substitute and new products as is demonstrated by the retailer, Aldi, whose focus on minimizing costsacross the entire operation permits it to position well against competitors such as Walmart.

Accepted Answer

A) True 
 B)False

Question 20

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

A manufacturing business pursuing cost leadership is likely to

The experience curve is a factor central to an overall cost leadership strategy and refers to how business learns to increase costs as it gains experience with production processes.

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

A pitfall of integrated overall cost leadership and differentiation is underestimating the expenses associated with coordinating value-creating activities in the extended value chain.

Which statement regarding competitive advantages is true?

BlackBerry lost its competitive advantage by 2016 because it

Value-chain support activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure)characterize which generic strategy?

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

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 findtheproduct attractive.

Which of the following is not a potential pitfall of a differentiation strategy?

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry.

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

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

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

Atlas Door tightly controlled logistics so that it always shipped only fully complete orders to construction sites. In regard to the five forces model, which of the following is a reason this might give them 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 intenserivalry.

Primark, an Irish clothing retailer, uses an overall cost leadership strategy. This could fail if it

Factors that lead to a low-cost position also provide substantial entry barriers to substitute and new products as is demonstrated by the retailer, Aldi, whose focus on minimizing costsacross the entire operation permits it to position well against competitors such as Walmart.

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

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's 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

A manufacturing business pursuing cost leadership is likely to

The experience curve is a factor central to an overall cost leadership strategy and refers to how business learns to increase costs as it gains experience with production processes.

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

A pitfall of integrated overall cost leadership and differentiation is underestimating the expenses associated with coordinating value-creating activities in the extended value chain.

Which statement regarding competitive advantages is true?

BlackBerry lost its competitive advantage by 2016 because it

Value-chain support activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure)characterize which generic strategy?

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

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 findtheproduct attractive.

Which of the following is not a potential pitfall of a differentiation strategy?

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry.

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

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

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

Atlas Door tightly controlled logistics so that it always shipped only fully complete orders to construction sites. In regard to the five forces model, which of the following is a reason this might give them 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 intenserivalry.

Primark, an Irish clothing retailer, uses an overall cost leadership strategy. This could fail if it

Factors that lead to a low-cost position also provide substantial entry barriers to substitute and new products as is demonstrated by the retailer, Aldi, whose focus on minimizing costsacross the entire operation permits it to position well against competitors such as Walmart.

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

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's 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