Question 1

Which of the following companies is using cost drivers effectively to manage value chain activities cost efficiently?

Accepted Answer

A)  Company A orders large amounts of supplies and keeps them stocked till customer demand rises to prevent falling behind schedule in meeting customer needs. 
B)  Company B uses just-in-time inventories and produces made-to-order products as and when customer demand rises. 
C)  Company C collects customer requests first and starts processing them only after reaching a certain number. 
D)  Company D routes all its supplies to a warehouse for storage and then transports them to individual factories for processing. 
E)  Company E substitutes lower-cost inputs with high-quality,high-cost inputs to gain customer attention and loyalty. 
A)  Company A orders large amounts of supplies and keeps them stocked till customer demand rises to prevent falling behind schedule in meeting customer needs. 
B)  Company B uses just-in-time inventories and produces made-to-order products as and when customer demand rises. 
C)  Company C collects customer requests first and starts processing them only after reaching a certain number. 
D)  Company D routes all its supplies to a warehouse for storage and then transports them to individual factories for processing. 
E)  Company E substitutes lower-cost inputs with high-quality,high-cost inputs to gain customer attention and loyalty.

Question 2

Broad differentiation strategies generally work best in market circumstances where:

Accepted Answer

A)  buyer needs and uses of a product are diverse and not fully satisfied by a standardized product. 
B)  most buyers have similar needs and use the product in the same ways. 
C)  the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart. 
D)  buyers are price sensitive and product switching costs are quite low. 
E)  market competition revolves around slowly evolving product features. 
A)  buyer needs and uses of a product are diverse and not fully satisfied by a standardized product. 
B)  most buyers have similar needs and use the product in the same ways. 
C)  the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart. 
D)  buyers are price sensitive and product switching costs are quite low. 
E)  market competition revolves around slowly evolving product features.

Question 3

A route to take in developing a differentiation advantage includes:

Accepted Answer

A)  incorporating product attributes and user features that raise the buyer's overall costs,but keep the price minimal. 
B)  incorporating tangible features that add functionality,increase customer satisfaction with the product specifications,functions,and styling. 
C)  signaling value by targeting sophisticated buyers. 
D)  incorporating intangible features that enhance buyer satisfaction in economic ways. 
E)  emphasizing high quality and performance of products through a standard and simple,no-fuss packaging. 
A)  incorporating product attributes and user features that raise the buyer's overall costs,but keep the price minimal. 
B)  incorporating tangible features that add functionality,increase customer satisfaction with the product specifications,functions,and styling. 
C)  signaling value by targeting sophisticated buyers. 
D)  incorporating intangible features that enhance buyer satisfaction in economic ways. 
E)  emphasizing high quality and performance of products through a standard and simple,no-fuss packaging.

Question 4

A competitive strategy of striving to be the low-cost provider is particularly attractive when:

Accepted Answer

A)  buyers are not very price-conscious. 
B)  most rivals are trying to be best-cost providers. 
C)  there are many ways to achieve product differentiation that have value to buyers. 
D)  most buyers use the product in much the same ways,with user requirements calling for a standardized product. 
E)  most rivals are pursuing focused low-cost or focused differentiation strategies. 
A)  buyers are not very price-conscious. 
B)  most rivals are trying to be best-cost providers. 
C)  there are many ways to achieve product differentiation that have value to buyers. 
D)  most buyers use the product in much the same ways,with user requirements calling for a standardized product. 
E)  most rivals are pursuing focused low-cost or focused differentiation strategies.

Question 5

Perceived value and signaling value are often an important part of a successful differentiation strategy because:

Accepted Answer

A)  of the standardization of buyer needs and preferences. 
B)  buyers seldom will pay for value they don't perceive,no matter how real the value of the differentiating extras may be. 
C)  buyer satisfaction cannot be achieved until a product's value is promoted through clever ads. 
D)  differentiation is all about selling products to sophisticated buyers. 
E)  there are no other ways to differentiate a product. 
A)  of the standardization of buyer needs and preferences. 
B)  buyers seldom will pay for value they don't perceive,no matter how real the value of the differentiating extras may be. 
C)  buyer satisfaction cannot be achieved until a product's value is promoted through clever ads. 
D)  differentiation is all about selling products to sophisticated buyers. 
E)  there are no other ways to differentiate a product.

Question 6

The competitive advantage of a best-cost provider is:

Accepted Answer

A)  having the best value chain in the industry. 
B)  its brand name reputation. 
C)  its capability to incorporate upscale or attractive attributes into its product offering at lower costs than rivals. 
D)  a distinctive competence in delivering top-notch quality and customer service. 
E)  a distinctive competence in supply chain management. 
A)  having the best value chain in the industry. 
B)  its brand name reputation. 
C)  its capability to incorporate upscale or attractive attributes into its product offering at lower costs than rivals. 
D)  a distinctive competence in delivering top-notch quality and customer service. 
E)  a distinctive competence in supply chain management.

Question 7

Which of the following is NOT one of the ways that a company that a non-capital-intensive can achieve a cost advantage by revamping its value chain?

Accepted Answer

A)  Creating a direct sales force and bypassing activities and costs of distributors and dealers 
B)  Conducting sales operations at the company's website 
C)  Increasing production capacity and then striving hard to operate at full capacity 
D)  Relocating facilities so as to curb the cost for shipping and handling activities 
E)  Streamlining operations by eliminating low value-added or unnecessary work steps and activities 
A)  Creating a direct sales force and bypassing activities and costs of distributors and dealers 
B)  Conducting sales operations at the company's website 
C)  Increasing production capacity and then striving hard to operate at full capacity 
D)  Relocating facilities so as to curb the cost for shipping and handling activities 
E)  Streamlining operations by eliminating low value-added or unnecessary work steps and activities

Question 8

A firm pursuing a best-cost provider strategy:

Accepted Answer

A)  seeks to be the low-cost provider in the largest and fastest growing (or best)market segment. 
B)  tries to have the best cost (as compared to rivals)for each activity in the industry's value chain. 
C)  tries to outcompete a low-cost provider by attracting buyers on the basis of charging the best price. 
D)  seeks to deliver superior value to buyers by satisfying their expectations on key attributes and beating rivals in meeting customer expectations on price. 
E)  seeks to achieve the best costs by using the best operating practices and incorporating the best features and attributes. 
A)  seeks to be the low-cost provider in the largest and fastest growing (or best)market segment. 
B)  tries to have the best cost (as compared to rivals)for each activity in the industry's value chain. 
C)  tries to outcompete a low-cost provider by attracting buyers on the basis of charging the best price. 
D)  seeks to deliver superior value to buyers by satisfying their expectations on key attributes and beating rivals in meeting customer expectations on price. 
E)  seeks to achieve the best costs by using the best operating practices and incorporating the best features and attributes.

Question 9

In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

Accepted Answer

Focused low-cost and focused differentia

Which of the following companies is using cost drivers effectively to manage value chain activities cost efficiently?

Broad differentiation strategies generally work best in market circumstances where:

A route to take in developing a differentiation advantage includes:

A competitive strategy of striving to be the low-cost provider is particularly attractive when:

Perceived value and signaling value are often an important part of a successful differentiation strategy because:

The competitive advantage of a best-cost provider is:

Which of the following is NOT one of the ways that a company that a non-capital-intensive can achieve a cost advantage by revamping its value chain?

A firm pursuing a best-cost provider strategy:

In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental-Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters

Exam 5: The Five Generic Competitive Strategies

Which of the following companies is using cost drivers effectively to manage value chain activities cost efficiently?

Broad differentiation strategies generally work best in market circumstances where:

A route to take in developing a differentiation advantage includes:

A competitive strategy of striving to be the low-cost provider is particularly attractive when:

Perceived value and signaling value are often an important part of a successful differentiation strategy because:

The competitive advantage of a best-cost provider is:

Which of the following is NOT one of the ways that a company that a non-capital-intensive can achieve a cost advantage by revamping its value chain?

A firm pursuing a best-cost provider strategy:

In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental-Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters