Question 1

A firm following a focus strategy must focus on _____________.

Accepted Answer

A)  governmental regulations 
B)  the rising cost of inputs 
C)  a market segment or group of segments 
D)  avoiding entering international markets 
A)  governmental regulations 
B)  the rising cost of inputs 
C)  a market segment or group of segments 
D)  avoiding entering international markets

Question 2

A firm can achieve differentiation through all of the following means EXCEPT ________.

Accepted Answer

A)  improving brand image 
B)  better customer service 
C)  adding additional product features 
D)  offering lower prices to frequent customers 
A)  improving brand image 
B)  better customer service 
C)  adding additional product features 
D)  offering lower prices to frequent customers

Question 3

Atlas Door created competitive advantage by reducing the time to receive and process and order and through installing a just in time logistics operation.Which of the following is not a reason for their favorable position relative to the five forces of industry competition?

Accepted Answer

A)  It exerted power over its customers. 
B)  It created high entry barriers for new entrants. 
C)  The integration of many value-chain activities in the firm provided causal ambiguity and path dependency. 
D)  The product was easily imitable. 
A)  It exerted power over its customers. 
B)  It created high entry barriers for new entrants. 
C)  The integration of many value-chain activities in the firm provided causal ambiguity and path dependency. 
D)  The product was easily imitable.

Question 4

Most analysts agree that use of the Internet will lower transaction costs.

Accepted Answer

A) True 
 B)False

Question 5

Which of these statements regarding the industry life cycle is correct?

Accepted Answer

A)  Part of the power of the market life cycle is its ability to serve as a short-run forecasting device. 
B)  Trends suggested by the market life cycle model are generally not reversible or repeatable. 
C)  It points out the need to maintain a differentiation advantage and a low cost advantage simultaneously. 
D)  It has important implications for company generic strategies, functional areas, value-creating activities, and overall objectives. 
A)  Part of the power of the market life cycle is its ability to serve as a short-run forecasting device. 
B)  Trends suggested by the market life cycle model are generally not reversible or repeatable. 
C)  It points out the need to maintain a differentiation advantage and a low cost advantage simultaneously. 
D)  It has important implications for company generic strategies, functional areas, value-creating activities, and overall objectives.

Question 6

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

Accepted Answer

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

Question 7

If a firm has a successful differentiation strategy,it is necessary to attain parity on cost.

Accepted Answer

A) True 
 B)False

Question 8

The three generic strategies that Michael Porter believes a firm can use to overcome the five forces and achieve competitive advantage include overall price leadership.

Accepted Answer

A) True 
 B)False

Question 9

Discuss how a competitive advantage can be attained through differentiation using the value chain concept.

Accepted Answer

A competitive advantage can be attained

Question 10

Explain what factors determine the sustainability of company competitive advantage and provide an example of this in action.

Accepted Answer

The sustainability of a company's compet

Question 11

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

Accepted Answer

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

Question 12

Incumbent firms that thought a niche market was too small to enter in the past may use Internet technologies to enter that segment with focusers.

Accepted Answer

A) True 
 B)False

Question 13

Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics)and support value chain activities that include expertise in process engineering (technology development)characterize what generic strategy?

Accepted Answer

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

Question 14

Piecemeal productivity improvements during a turnaround typically do NOT involve _______.

Accepted Answer

A)  business process reengineering 
B)  increased capacity utilization 
C)  expansion of company product market scope 
D)  benchmarking 
A)  business process reengineering 
B)  increased capacity utilization 
C)  expansion of company product market scope 
D)  benchmarking

Question 15

The French automobile maker,Renault,attains competitive advantage by revamping cars to be more cost efficient.

Accepted Answer

A) True 
 B)False

Question 16

The experience curve concept suggests that production costs tend to decrease as production increases.

Accepted Answer

A) True 
 B)False

Question 17

Explain how a cost leadership strategy permits a firm to address the five forces in its competitive environment so that it can enjoy higher-than-normal profits.

Accepted Answer

A cost leadership strategy allows a firm

Question 18

In the __________ stage of the industry life cycle,there are few segments,the emphasis on process design is low,and the major functional areas of concern are general management and finance.

Accepted Answer

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

Question 19

As markets mature,competition on the basis of differentiation is preferable to price competition.

Accepted Answer

A) True 
 B)False

Question 20

Research shows that which of the following is not a strategy used by firms engaged in successful turnarounds?

Accepted Answer

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

A firm following a focus strategy must focus on _____________.

A firm can achieve differentiation through all of the following means EXCEPT ________.

Atlas Door created competitive advantage by reducing the time to receive and process and order and through installing a just in time logistics operation.Which of the following is not a reason for their favorable position relative to the five forces of industry competition?

Most analysts agree that use of the Internet will lower transaction costs.

Which of these statements regarding the industry life cycle is correct?

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

If a firm has a successful differentiation strategy,it is necessary to attain parity on cost.

The three generic strategies that Michael Porter believes a firm can use to overcome the five forces and achieve competitive advantage include overall price leadership.

Discuss how a competitive advantage can be attained through differentiation using the value chain concept.

Explain what factors determine the sustainability of company competitive advantage and provide an example of this in action.

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

Incumbent firms that thought a niche market was too small to enter in the past may use Internet technologies to enter that segment with focusers.

Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics)and support value chain activities that include expertise in process engineering (technology development)characterize what generic strategy?

Piecemeal productivity improvements during a turnaround typically do NOT involve _______.

The French automobile maker,Renault,attains competitive advantage by revamping cars to be more cost efficient.

The experience curve concept suggests that production costs tend to decrease as production increases.

Explain how a cost leadership strategy permits a firm to address the five forces in its competitive environment so that it can enjoy higher-than-normal profits.

In the __________ stage of the industry life cycle,there are few segments,the emphasis on process design is low,and the major functional areas of concern are general management and finance.

As markets mature,competition on the basis of differentiation is preferable to price competition.

Research shows that which of the following is not a strategy used by firms engaged in successful turnarounds?

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

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

A firm following a focus strategy must focus on _____________.

A firm can achieve differentiation through all of the following means EXCEPT ________.

Atlas Door created competitive advantage by reducing the time to receive and process and order and through installing a just in time logistics operation.Which of the following is not a reason for their favorable position relative to the five forces of industry competition?

Most analysts agree that use of the Internet will lower transaction costs.

Which of these statements regarding the industry life cycle is correct?

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

If a firm has a successful differentiation strategy,it is necessary to attain parity on cost.

The three generic strategies that Michael Porter believes a firm can use to overcome the five forces and achieve competitive advantage include overall price leadership.

Discuss how a competitive advantage can be attained through differentiation using the value chain concept.

Explain what factors determine the sustainability of company competitive advantage and provide an example of this in action.

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

Incumbent firms that thought a niche market was too small to enter in the past may use Internet technologies to enter that segment with focusers.

Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics)and support value chain activities that include expertise in process engineering (technology development)characterize what generic strategy?

Piecemeal productivity improvements during a turnaround typically do NOT involve _______.

The French automobile maker,Renault,attains competitive advantage by revamping cars to be more cost efficient.

The experience curve concept suggests that production costs tend to decrease as production increases.

Explain how a cost leadership strategy permits a firm to address the five forces in its competitive environment so that it can enjoy higher-than-normal profits.

In the __________ stage of the industry life cycle,there are few segments,the emphasis on process design is low,and the major functional areas of concern are general management and finance.

As markets mature,competition on the basis of differentiation is preferable to price competition.

Research shows that which of the following is not a strategy used by firms engaged in successful turnarounds?

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