Question 1

A company pursuing a low-cost strategy:

Accepted Answer

A)  Improves non-price factors such as design and customer service 
B)  Produces a basic offering to reduce cost structures 
C)  Keeps advertising expenses at a maximum 
D)  Relies on patent protections to keep costs low 
E)  Customizes marketing mix to different market segments 
A)  Improves non-price factors such as design and customer service 
B)  Produces a basic offering to reduce cost structures 
C)  Keeps advertising expenses at a maximum 
D)  Relies on patent protections to keep costs low 
E)  Customizes marketing mix to different market segments

Question 2

A disadvantage of pursuing a low-cost strategy is that:

Accepted Answer

A)  it makes it difficult for firms to customize their product offerings . 
B)  price wars make it hard to compete with differentiators. 
C)  it costs more than a differentiation strategy because of the necessity of high capital investments. 
D)  powerful buyers are a major threat. 
E)  it reduces customer retention. 
A)  it makes it difficult for firms to customize their product offerings . 
B)  price wars make it hard to compete with differentiators. 
C)  it costs more than a differentiation strategy because of the necessity of high capital investments. 
D)  powerful buyers are a major threat. 
E)  it reduces customer retention.

Question 3

Production of a large product variety without a large cost penalty is known as:

Accepted Answer

A)  market concentration. 
B)  market segmentation. 
C)  focused differentiation. 
D)  mass production. 
E)  mass customization. 
A)  market concentration. 
B)  market segmentation. 
C)  focused differentiation. 
D)  mass production. 
E)  mass customization.

Question 4

When a company targets a certain segment or niche, and customizes its offering to the needs of that particular segment through the addition of features and functions, the company is pursuing a _____ strategy.

Accepted Answer

A)  broad low-cost 
B)  broad differentiation 
C)  product substitution 
D)  focus low-cost 
E)  focus differentiation 
A)  broad low-cost 
B)  broad differentiation 
C)  product substitution 
D)  focus low-cost 
E)  focus differentiation

Question 5

Which of the following generic competitive strategies is a producer of commodity steel most likely to pursue?

Accepted Answer

A)  Exclusive dealing 
B)  Broad differentiation 
C)  Focus differentiation 
D)  Broad low-cost 
E)  Horizontal integration 
A)  Exclusive dealing 
B)  Broad differentiation 
C)  Focus differentiation 
D)  Broad low-cost 
E)  Horizontal integration

Question 6

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

Accepted Answer

A) True 
 B)False

Question 7

A product's appeal to customers' desires cannot be considered a source of differentiation.

Accepted Answer

A) True 
 B)False

Question 8

A differentiated product is a product that:

Accepted Answer

A)  has a greater resale value than rival products. 
B)  provides greater reliability than rival products. 
C)  is offered free of cost on purchase of a company's standard product. 
D)  always costs more than rival products. 
E)  always costs less than rival products. 
A)  has a greater resale value than rival products. 
B)  provides greater reliability than rival products. 
C)  is offered free of cost on purchase of a company's standard product. 
D)  always costs more than rival products. 
E)  always costs less than rival products.

Question 9

The efficiency frontier is not static; it is continually being pushed outwards by the efforts of managers to improve their firm's performance through innovation.

Accepted Answer

A) True 
 B)False

Question 10

When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings, it is said to be pursuing:

Accepted Answer

A)  stuck-in-the-middle strategy. 
B)  rapid-growth strategy. 
C)  differentiation strategy. 
D)  focus strategy. 
E)  low-cost strategy. 
A)  stuck-in-the-middle strategy. 
B)  rapid-growth strategy. 
C)  differentiation strategy. 
D)  focus strategy. 
E)  low-cost strategy.

Question 11

Cool Looks produces a variety of clothing for various customer groups. Which of the following strategies is the firm most likely pursuing?

Accepted Answer

A)  Cost leadership 
B)  Differentiation 
C)  Product substitution 
D)  Focus 
E)  Share building 
A)  Cost leadership 
B)  Differentiation 
C)  Product substitution 
D)  Focus 
E)  Share building

Question 12

A generic business-level strategy is a strategy that gives a company a specific form of competitive position and advantage over its rivals that results in above-average profitability.

Accepted Answer

A) True 
 B)False

Question 13

The term value innovation is used to describe:

Accepted Answer

A)  the way a company decides to group customers based on important differences in their needs to gain a competitive advantage. 
B)  a business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings. 
C)  what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible. 
D)  what happens when a company decides to ignore different segments, and produce a standardized product for the average consumer. 
E)  what happens when a company decides to serve many segments, or even the entire market, producing different offerings for different segments. 
A)  the way a company decides to group customers based on important differences in their needs to gain a competitive advantage. 
B)  a business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings. 
C)  what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible. 
D)  what happens when a company decides to ignore different segments, and produce a standardized product for the average consumer. 
E)  what happens when a company decides to serve many segments, or even the entire market, producing different offerings for different segments.

Question 14

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

Accepted Answer

A)  standardized market price. 
B)  industry life cycle stage. 
C)  degree of market segmentation. 
D)  age of the market. 
E)  market trajectory. 
A)  standardized market price. 
B)  industry life cycle stage. 
C)  degree of market segmentation. 
D)  age of the market. 
E)  market trajectory.

A company pursuing a low-cost strategy:

A disadvantage of pursuing a low-cost strategy is that:

Production of a large product variety without a large cost penalty is known as:

When a company targets a certain segment or niche, and customizes its offering to the needs of that particular segment through the addition of features and functions, the company is pursuing a _____ strategy.

Which of the following generic competitive strategies is a producer of commodity steel most likely to pursue?

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

A product's appeal to customers' desires cannot be considered a source of differentiation.

A differentiated product is a product that:

The efficiency frontier is not static; it is continually being pushed outwards by the efforts of managers to improve their firm's performance through innovation.

When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings, it is said to be pursuing:

Cool Looks produces a variety of clothing for various customer groups. Which of the following strategies is the firm most likely pursuing?

A generic business-level strategy is a strategy that gives a company a specific form of competitive position and advantage over its rivals that results in above-average profitability.

The term value innovation is used to describe:

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

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Exam 5: Business-Level Strategy

A company pursuing a low-cost strategy:

A disadvantage of pursuing a low-cost strategy is that:

Production of a large product variety without a large cost penalty is known as:

When a company targets a certain segment or niche, and customizes its offering to the needs of that particular segment through the addition of features and functions, the company is pursuing a _____ strategy.

Which of the following generic competitive strategies is a producer of commodity steel most likely to pursue?

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

A product's appeal to customers' desires cannot be considered a source of differentiation.

A differentiated product is a product that:

The efficiency frontier is not static; it is continually being pushed outwards by the efforts of managers to improve their firm's performance through innovation.

When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings, it is said to be pursuing:

Cool Looks produces a variety of clothing for various customer groups. Which of the following strategies is the firm most likely pursuing?

A generic business-level strategy is a strategy that gives a company a specific form of competitive position and advantage over its rivals that results in above-average profitability.

The term value innovation is used to describe:

The main difference between companies following a broad low-cost strategy and those following a focus low-cost strategy is in the:

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters