Question 1

A cost leadership strategy can be at risk of obsolescence of the basis of the cost advantage.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a reason for the successful turnaround that Ford experienced in 2011 under CEO Mulally?

Accepted Answer

A)  downsizing through the sale of non-Ford brands 
B)  focus on a narrower range of cars 
C)  tightening of the product design across brands 
D)  increasing its manpower across the company 
A)  downsizing through the sale of non-Ford brands 
B)  focus on a narrower range of cars 
C)  tightening of the product design across brands 
D)  increasing its manpower across the company

Question 3

The Internet has provided a small subset of companies with greater tools for managing costs.

Accepted Answer

A) True 
 B)False

Question 4

A firm can attain an overall cost leadership position by increasing the management layers in order to reduce overhead costs.

Accepted Answer

A) True 
 B)False

Question 5

An important potential pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become stuck-in-the-middle.

Accepted Answer

A) True 
 B)False

Question 6

Dell Computer has an online ordering system that allows consumers to configure their own computers before Dell builds them.This capability is an example of _____________.

Accepted Answer

A)  electronic data interchange 
B)  mass customization 
C)  knowledge management 
D)  collaborative design 
A)  electronic data interchange 
B)  mass customization 
C)  knowledge management 
D)  collaborative design

Question 7

Focus,by itself,often constitutes a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 8

Competitive advantage is not affected by actions by rivals from within and outside of the industry.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

Use the value chain as a framework to explain how a firm can achieve a competitive advantage of overall cost leadership.

Accepted Answer

The value chain framework can be used to

Question 11

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)  If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer. 
C)  In the long run, a business with one or more competitive advantages is probably destined to earn normal profits. 
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)  If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer. 
C)  In the long run, a business with one or more competitive advantages is probably destined to earn normal profits. 
D)  Attaining multiple types of competitive advantage is a recipe for failure.

Question 12

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)  lessening competitive rivalry by distinguishing itself 
C)  increasing economies of scale 
D)  serving a broader market segment 
A)  having brand-loyal customers become more sensitive to prices 
B)  lessening competitive rivalry by distinguishing itself 
C)  increasing economies of scale 
D)  serving a broader market segment

Question 13

The Internet and digital technologies offer opportunities and pitfalls to companies using overall cost leadership,differentiation,and focus strategies.Discuss the statement and provide examples that support your argument.

Accepted Answer

The Internet and digital technologies ha

Question 14

High product differentiation is generally accompanied by __________.

Accepted Answer

A)  higher market share 
B)  higher profit margins and lower costs 
C)  decreased emphasis on competition based on price 
D)  significant economies of scale 
A)  higher market share 
B)  higher profit margins and lower costs 
C)  decreased emphasis on competition based on price 
D)  significant economies of scale

Question 15

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

Question 16

The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle?

Accepted Answer

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

Question 17

The growth stage of the industry life cycle is characterized by

Accepted Answer

A)  in-kind competition (from the same type of product) 
B)  premium pricing 
C)  a growing trend to compete on the basis of price 
D)  retaliation by competitors whose customers are stolen 
A)  in-kind competition (from the same type of product) 
B)  premium pricing 
C)  a growing trend to compete on the basis of price 
D)  retaliation by competitors whose customers are stolen

Question 18

The decline stage of the industry life cycle stage is inevitably followed by death.

Accepted Answer

A) True 
 B)False

Question 19

A need for turnaround occurs only during the maturity or declining stage of the life cycle.

Accepted Answer

A) True 
 B)False

Question 20

Too much focus on one or a few value-chain activities can be a pitfall of the overall cost leadership strategy.

Accepted Answer

A) True 
 B)False

A cost leadership strategy can be at risk of obsolescence of the basis of the cost advantage.

Which of the following is not a reason for the successful turnaround that Ford experienced in 2011 under CEO Mulally?

The Internet has provided a small subset of companies with greater tools for managing costs.

A firm can attain an overall cost leadership position by increasing the management layers in order to reduce overhead costs.

An important potential pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become stuck-in-the-middle.

Dell Computer has an online ordering system that allows consumers to configure their own computers before Dell builds them.This capability is an example of _____________.

Focus,by itself,often constitutes a competitive advantage.

Competitive advantage is not affected by actions by rivals from within and outside of the industry.

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

Use the value chain as a framework to explain how a firm can achieve a competitive advantage of overall cost leadership.

Which statement regarding competitive advantages is true?

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

The Internet and digital technologies offer opportunities and pitfalls to companies using overall cost leadership,differentiation,and focus strategies.Discuss the statement and provide examples that support your argument.

High product differentiation is generally accompanied 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?

The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle?

The growth stage of the industry life cycle is characterized by

The decline stage of the industry life cycle stage is inevitably followed by death.

A need for turnaround occurs only during the maturity or declining stage of the life cycle.

Too much focus on one or a few value-chain activities can be a pitfall of the overall cost leadership strategy.

Strategic Management: Creating Competitiveadvantages

Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages

Assessing the Internal Environmentof the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources

Corporate-Level Strategy: Creatingvalue Through Diversification

International Strategy: Creating Valuein Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporategovernance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fosteringcorporate Entrepreneurship

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Exam 5: Business-Level Strategy: Creating Andsustaining Competitive Advantages

A cost leadership strategy can be at risk of obsolescence of the basis of the cost advantage.

Which of the following is not a reason for the successful turnaround that Ford experienced in 2011 under CEO Mulally?

The Internet has provided a small subset of companies with greater tools for managing costs.

A firm can attain an overall cost leadership position by increasing the management layers in order to reduce overhead costs.

An important potential pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become stuck-in-the-middle.

Dell Computer has an online ordering system that allows consumers to configure their own computers before Dell builds them.This capability is an example of _____________.

Focus,by itself,often constitutes a competitive advantage.

Competitive advantage is not affected by actions by rivals from within and outside of the industry.

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

Use the value chain as a framework to explain how a firm can achieve a competitive advantage of overall cost leadership.

Which statement regarding competitive advantages is true?

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

The Internet and digital technologies offer opportunities and pitfalls to companies using overall cost leadership,differentiation,and focus strategies.Discuss the statement and provide examples that support your argument.

High product differentiation is generally accompanied 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?

The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle?

The growth stage of the industry life cycle is characterized by

The decline stage of the industry life cycle stage is inevitably followed by death.

A need for turnaround occurs only during the maturity or declining stage of the life cycle.

Too much focus on one or a few value-chain activities can be a pitfall of the overall cost leadership strategy.

Strategic Management: Creating Competitiveadvantages

Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages

Assessing the Internal Environmentof the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources

Corporate-Level Strategy: Creatingvalue Through Diversification

International Strategy: Creating Valuein Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporategovernance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fosteringcorporate Entrepreneurship

Filters