Question 1

If a company uses a focused cost-leadership strategy,it competes in the market segments where

Accepted Answer

A) it can operate at no cost disadvantage. 
B) where cost is not a high concern. 
C) it can operate at a minimal cost disadvantage. 
D) there is frequently little or no competition. 
E) none of these choices. 
A) it can operate at no cost disadvantage. 
B) where cost is not a high concern. 
C) it can operate at a minimal cost disadvantage. 
D) there is frequently little or no competition. 
E) none of these choices. A

Question 2

Which firm has the greatest probability of achieving a competitive advantage by successfully managing its strategy?

Accepted Answer

A) A steel manufacturer that continues to use large plants instead of new technology to achieve economies of scale 
B) A retailer that sells a wide range of clothes to the mass market 
C) A pharmaceutical firm with brand loyalty that decreases administrative costs but continues to invest in research and development 
D) A large defense contractor that offers an undifferentiated product only to a few market segments 
E) A jeans manufacturer that keeps its production within the United States rather than moving to less expensive,overseas factories 
A) A steel manufacturer that continues to use large plants instead of new technology to achieve economies of scale 
B) A retailer that sells a wide range of clothes to the mass market 
C) A pharmaceutical firm with brand loyalty that decreases administrative costs but continues to invest in research and development 
D) A large defense contractor that offers an undifferentiated product only to a few market segments 
E) A jeans manufacturer that keeps its production within the United States rather than moving to less expensive,overseas factories C

Question 3

Maximizing the profitability of a company's business model is about making the right choices with regard to value creation through differentiation,costs,and pricing given both the demand conditions in the company's market and the competitive conditions in the company's industry.

Accepted Answer

A) True 
 B)False  True

Question 4

What factors may account for a company's failure to achieve effective competitive positioning? What actions should a company take to avoid such failures?

Accepted Answer

Among the factors that account for a com

Question 5

To pursue a cost leadership strategy,strategic managers need to incorporate all the latest technology into their products.

Accepted Answer

A) True 
 B)False

Question 6

A strategic group is a group of companies within a particular industry

Accepted Answer

A) with the same overhead costs. 
B) with the same cost structure. 
C) that are pursuing a similar business model. 
D) that are using the same suppliers. 
E) all of these choices. 
A) with the same overhead costs. 
B) with the same cost structure. 
C) that are pursuing a similar business model. 
D) that are using the same suppliers. 
E) all of these choices.

Question 7

A cost leader must respond to the strategic moves of its differentiated competitors.

Accepted Answer

A) True 
 B)False

Question 8

All focus strategies entail serving a specific market segment using a differentiation approach.

Accepted Answer

A) True 
 B)False

Question 9

Product differentiation is often

Accepted Answer

A) inexpensive. 
B) expensive. 
C) cheaper than producing a single undifferentiated product. 
D) not likely to be successful. 
E) unnecessary because customer needs and wants are essentially alike. 
A) inexpensive. 
B) expensive. 
C) cheaper than producing a single undifferentiated product. 
D) not likely to be successful. 
E) unnecessary because customer needs and wants are essentially alike.

Question 10

A firm makes complex telecommunications products,such as cellular telephones.Because this company has a distinctive competency in research and development,it should try to differentiate its product through

Accepted Answer

A) reliability. 
B) innovation. 
C) advertising. 
D) service. 
E) low price. 
A) reliability. 
B) innovation. 
C) advertising. 
D) service. 
E) low price.

Question 11

Companies are now able to pursue cost leadership and differentiation simultaneously because

Accepted Answer

A) of the emergence of flexible manufacturing technologies and new information technologies. 
B) markets have become more homogeneous. 
C) industries have become consolidated. 
D) barriers to entry have fallen. 
E) government regulation has diminished. 
A) of the emergence of flexible manufacturing technologies and new information technologies. 
B) markets have become more homogeneous. 
C) industries have become consolidated. 
D) barriers to entry have fallen. 
E) government regulation has diminished.

Question 12

Which of the following statements is true?

Accepted Answer

A) Differentiation and cost structure decisions affect one another. 
B) Differentiation and cost structure decisions do not affect one another. 
C) Differentiation and cost structure decisions have little effect on a company's profitability. 
D) Differentiation decisions do not affect a company's profitability. 
E) Cost structure decisions do not affect a company's profitability. 
A) Differentiation and cost structure decisions affect one another. 
B) Differentiation and cost structure decisions do not affect one another. 
C) Differentiation and cost structure decisions have little effect on a company's profitability. 
D) Differentiation decisions do not affect a company's profitability. 
E) Cost structure decisions do not affect a company's profitability.

Question 13

Delta Airlines used to advertise its high-quality air travel service by saying it flew "anywhere,anytime." What generic strategy is represented by this advertisement?

Accepted Answer

A) Cost leadership 
B) Differentiation 
C) Stuck in the middle 
D) Focused differentiation 
E) Both cost leadership and differentiation simultaneously 
A) Cost leadership 
B) Differentiation 
C) Stuck in the middle 
D) Focused differentiation 
E) Both cost leadership and differentiation simultaneously

Question 14

A radio station has a distinctive competency in developing new products (shows)and wants to serve the upscale market.Which of the following is the most appropriate generic strategy for this company?

Accepted Answer

A) Cost leadership 
B) Differentiation 
C) Both cost leadership and differentiation 
D) Focused low-cost approach 
E) Focused differentiation approach 
A) Cost leadership 
B) Differentiation 
C) Both cost leadership and differentiation 
D) Focused low-cost approach 
E) Focused differentiation approach

Question 15

When technological change is low and customer needs are well established and standardized,the most appropriate generic strategy to pursue is

Accepted Answer

A) market concentration. 
B) differentiation. 
C) focus. 
D) asset reduction. 
E) cost leadership. 
A) market concentration. 
B) differentiation. 
C) focus. 
D) asset reduction. 
E) cost leadership.

Question 16

Zara,the Spanish high-fashion house,was unsuccessful in using creative information systems to produce fashionable clothes at lower prices and sell them in their own chain of clothing stores.

Accepted Answer

A) True 
 B)False

Question 17

Ryanair,based in Dublin,Ireland,used the cost-leadership business model pioneered by Southwest Airlines in the United States to become a leading player in the European air travel market.

Accepted Answer

A) True 
 B)False

Question 18

Competitive advantage with product differentiation occurs when a company

Accepted Answer

A) creates competitive advantage by grouping customers on the basis of important differences in their needs. 
B) helps firms keep costs to a minimum. 
C) creates,makes,and sells a product in a way that better satisfies customer needs than its rivals do. 
D) is focused on corporate-level strategy. 
E) allows its managers to ignore costs. 
A) creates competitive advantage by grouping customers on the basis of important differences in their needs. 
B) helps firms keep costs to a minimum. 
C) creates,makes,and sells a product in a way that better satisfies customer needs than its rivals do. 
D) is focused on corporate-level strategy. 
E) allows its managers to ignore costs.

Question 19

A differentiation business model is based on pursuing a set of generic strategies that allows a company to achieve a competitive advantage by creating a product that customers perceive as different or distinct in some important way.

Accepted Answer

A) True 
 B)False

Question 20

A product's appeal to customers' psychological desires is a source of differentiation.

Accepted Answer

A) True 
 B)False

If a company uses a focused cost-leadership strategy,it competes in the market segments where

Which firm has the greatest probability of achieving a competitive advantage by successfully managing its strategy?

Maximizing the profitability of a company's business model is about making the right choices with regard to value creation through differentiation,costs,and pricing given both the demand conditions in the company's market and the competitive conditions in the company's industry.

What factors may account for a company's failure to achieve effective competitive positioning? What actions should a company take to avoid such failures?

To pursue a cost leadership strategy,strategic managers need to incorporate all the latest technology into their products.

A strategic group is a group of companies within a particular industry

A cost leader must respond to the strategic moves of its differentiated competitors.

All focus strategies entail serving a specific market segment using a differentiation approach.

Product differentiation is often

A firm makes complex telecommunications products,such as cellular telephones.Because this company has a distinctive competency in research and development,it should try to differentiate its product through

Companies are now able to pursue cost leadership and differentiation simultaneously because

Which of the following statements is true?

Delta Airlines used to advertise its high-quality air travel service by saying it flew "anywhere,anytime." What generic strategy is represented by this advertisement?

A radio station has a distinctive competency in developing new products (shows)and wants to serve the upscale market.Which of the following is the most appropriate generic strategy for this company?

When technological change is low and customer needs are well established and standardized,the most appropriate generic strategy to pursue is

Zara,the Spanish high-fashion house,was unsuccessful in using creative information systems to produce fashionable clothes at lower prices and sell them in their own chain of clothing stores.

Ryanair,based in Dublin,Ireland,used the cost-leadership business model pioneered by Southwest Airlines in the United States to become a leading player in the European air travel market.

Competitive advantage with product differentiation occurs when a company

A differentiation business model is based on pursuing a set of generic strategies that allows a company to achieve a competitive advantage by creating a product that customers perceive as different or distinct in some important way.

A product's appeal to customers' psychological desires is a source of differentiation.

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 5: Building Competitive Advantage Through Business-Level Strategy

If a company uses a focused cost-leadership strategy,it competes in the market segments where

Which firm has the greatest probability of achieving a competitive advantage by successfully managing its strategy?

Maximizing the profitability of a company's business model is about making the right choices with regard to value creation through differentiation,costs,and pricing given both the demand conditions in the company's market and the competitive conditions in the company's industry.

What factors may account for a company's failure to achieve effective competitive positioning? What actions should a company take to avoid such failures?

To pursue a cost leadership strategy,strategic managers need to incorporate all the latest technology into their products.

A strategic group is a group of companies within a particular industry

A cost leader must respond to the strategic moves of its differentiated competitors.

All focus strategies entail serving a specific market segment using a differentiation approach.

Product differentiation is often

A firm makes complex telecommunications products,such as cellular telephones.Because this company has a distinctive competency in research and development,it should try to differentiate its product through

Companies are now able to pursue cost leadership and differentiation simultaneously because

Which of the following statements is true?

Delta Airlines used to advertise its high-quality air travel service by saying it flew "anywhere,anytime." What generic strategy is represented by this advertisement?

A radio station has a distinctive competency in developing new products (shows)and wants to serve the upscale market.Which of the following is the most appropriate generic strategy for this company?

When technological change is low and customer needs are well established and standardized,the most appropriate generic strategy to pursue is

Zara,the Spanish high-fashion house,was unsuccessful in using creative information systems to produce fashionable clothes at lower prices and sell them in their own chain of clothing stores.

Ryanair,based in Dublin,Ireland,used the cost-leadership business model pioneered by Southwest Airlines in the United States to become a leading player in the European air travel market.

Competitive advantage with product differentiation occurs when a company

A differentiation business model is based on pursuing a set of generic strategies that allows a company to achieve a competitive advantage by creating a product that customers perceive as different or distinct in some important way.

A product's appeal to customers' psychological desires is a source of differentiation.

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters