Question 1

To create a successful business model,managers must choose a set of business-level strategies that

Accepted Answer

A) allow the company to better compete with rivals within an industry. 
B) help them decide what businesses to enter and exit. 
C) help build an organizational structure that contains multiple businesses. 
D) work together to give a company a competitive advantage over its rivals. 
E) help it to diversify to better leverage distinctive competencies. 
A) allow the company to better compete with rivals within an industry. 
B) help them decide what businesses to enter and exit. 
C) help build an organizational structure that contains multiple businesses. 
D) work together to give a company a competitive advantage over its rivals. 
E) help it to diversify to better leverage distinctive competencies.

Question 2

For any company,building new competencies in the functions that sustain its differentiation means neglecting its cost structure.

Accepted Answer

A) True 
 B)False

Question 3

Strategic group analysis allows managers to focus only on what is happening in their group.

Accepted Answer

A) True 
 B)False

Question 4

The principal dangers of a cost leadership approach include all of the following except

Accepted Answer

A) powerful buyers. 
B) technological change. 
C) imitation of production techniques. 
D) changes in consumer tastes. 
E) rivals lowering their costs. 
A) powerful buyers. 
B) technological change. 
C) imitation of production techniques. 
D) changes in consumer tastes. 
E) rivals lowering their costs.

Question 5

Nick is often asked to perform his clown act for birthday parties and school groups,but he offers his most inexpensive services only to children's hospitals.Nick is pursuing which generic business strategy?

Accepted Answer

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

Question 6

The problem facing differentiators,such as L.L.Bean,is how to protect the distinctiveness of their products from imitators who are constantly searching for ways to steal away customers by offering similar products at lower prices.

Accepted Answer

A) True 
 B)False

Question 7

Cost leadership is most appropriate when

Accepted Answer

A) the power of buyers is low and barriers to entry are high. 
B) economies of scale are relatively unimportant in manufacturing products. 
C) customers have very different needs and uses for the industry's products. 
D) product innovation is the key competitive factor. 
E) industry rivalry is high and customers are very sensitive to prices. 
A) the power of buyers is low and barriers to entry are high. 
B) economies of scale are relatively unimportant in manufacturing products. 
C) customers have very different needs and uses for the industry's products. 
D) product innovation is the key competitive factor. 
E) industry rivalry is high and customers are very sensitive to prices.

Question 8

Which of the following is not a main approach to market segmentation?

Accepted Answer

A) Marketing a product targeted toward average or typical customers 
B) Marketing a product targeted toward most or all of the different market segments 
C) Making customized products to meet the specific needs of customers 
D) Making products to meet the specific needs of a narrow group of customers 
E) Making one product aimed toward a general rather than a specific subset of customers 
A) Marketing a product targeted toward average or typical customers 
B) Marketing a product targeted toward most or all of the different market segments 
C) Making customized products to meet the specific needs of customers 
D) Making products to meet the specific needs of a narrow group of customers 
E) Making one product aimed toward a general rather than a specific subset of customers

Question 9

To pursue a successful business model,managers must be careful to ensure that the set of business-level strategies they have formulated and implemented are working in harmony to support each other.

Accepted Answer

A) True 
 B)False

Question 10

Focusers are vulnerable to shifting consumer tastes,which can eliminate their market niche.

Accepted Answer

A) True 
 B)False

Question 11

Companies that successfully differentiate a product often charge ____ prices for them.

Accepted Answer

A) premium 
B) exorbitant 
C) below cost 
D) average 
E) none of these choices 
A) premium 
B) exorbitant 
C) below cost 
D) average 
E) none of these choices

Question 12

Which of the following automobile manufacturers have found it difficult to differentiate their cars?

Accepted Answer

A) Lincoln 
B) Audi 
C) Acura 
D) All of these choices 
E) None of these choices 
A) Lincoln 
B) Audi 
C) Acura 
D) All of these choices 
E) None of these choices

Question 13

For each of the generic strategies¾cost leadership,differentiation,and focus¾describe one advantage and one disadvantage.

Accepted Answer

Students should mention items from the f

Question 14

A business model based on differentiation requires a company to

Accepted Answer

A) make strategic choices that reinforce each other and increase the value of a good or service in the eyes of customers. 
B) serve several market segments simultaneously to take full advantage of differentiation. 
C) systematically raise its prices at stipulated times. 
D) develop a functional organization structure. 
E) all of these choices. 
A) make strategic choices that reinforce each other and increase the value of a good or service in the eyes of customers. 
B) serve several market segments simultaneously to take full advantage of differentiation. 
C) systematically raise its prices at stipulated times. 
D) develop a functional organization structure. 
E) all of these choices.

Question 15

Which of the following is not a generic competitive strategy?

Accepted Answer

A) Cost leadership 
B) Differentiation 
C) Focused cost leadership 
D) Focused differentiation 
E) Innovation 
A) Cost leadership 
B) Differentiation 
C) Focused cost leadership 
D) Focused differentiation 
E) Innovation

Question 16

Compared to a differentiator,the cost leader has the advantage over its rivals of

Accepted Answer

A) making higher profit margins. 
B) being better able to withstand the negative influence of powerful suppliers and buyers. 
C) having inimitable production methods. 
D) enjoying higher brand loyalty. 
E) being preferred by investors. 
A) making higher profit margins. 
B) being better able to withstand the negative influence of powerful suppliers and buyers. 
C) having inimitable production methods. 
D) enjoying higher brand loyalty. 
E) being preferred by investors.

Question 17

A company pursuing a cost-leadership strategy does which of the following?

Accepted Answer

A) Includes substandard components in the product to keep costs low 
B) Chooses strategies that keep costs as low as feasible and are effective 
C) Keeps advertising expenses at a maximum 
D) Relies on patent protections to keep costs low 
E) None of these choices 
A) Includes substandard components in the product to keep costs low 
B) Chooses strategies that keep costs as low as feasible and are effective 
C) Keeps advertising expenses at a maximum 
D) Relies on patent protections to keep costs low 
E) None of these choices

Question 18

When a company produces a wide range of products for different customer groups,it is following a strategy of

Accepted Answer

A) cost leadership. 
B) differentiation. 
C) focus. 
D) market concentration. 
E) share building. 
A) cost leadership. 
B) differentiation. 
C) focus. 
D) market concentration. 
E) share building.

Question 19

Market segmentation is best described as what type of process?

Accepted Answer

A) Static 
B) Regressive 
C) Evolving 
D) Normative 
E) Revolving 
A) Static 
B) Regressive 
C) Evolving 
D) Normative 
E) Revolving

Question 20

Differentiation is least effective when it is based on

Accepted Answer

A) physical features. 
B) service quality. 
C) an appeal to the customer's psychological needs. 
D) reliability. 
E) product quality. 
A) physical features. 
B) service quality. 
C) an appeal to the customer's psychological needs. 
D) reliability. 
E) product quality.

To create a successful business model,managers must choose a set of business-level strategies that

For any company,building new competencies in the functions that sustain its differentiation means neglecting its cost structure.

Strategic group analysis allows managers to focus only on what is happening in their group.

The principal dangers of a cost leadership approach include all of the following except

Nick is often asked to perform his clown act for birthday parties and school groups,but he offers his most inexpensive services only to children's hospitals.Nick is pursuing which generic business strategy?

The problem facing differentiators,such as L.L.Bean,is how to protect the distinctiveness of their products from imitators who are constantly searching for ways to steal away customers by offering similar products at lower prices.

Cost leadership is most appropriate when

Which of the following is not a main approach to market segmentation?

To pursue a successful business model,managers must be careful to ensure that the set of business-level strategies they have formulated and implemented are working in harmony to support each other.

Focusers are vulnerable to shifting consumer tastes,which can eliminate their market niche.

Companies that successfully differentiate a product often charge ____ prices for them.

Which of the following automobile manufacturers have found it difficult to differentiate their cars?

For each of the generic strategies¾cost leadership,differentiation,and focus¾describe one advantage and one disadvantage.

A business model based on differentiation requires a company to

Which of the following is not a generic competitive strategy?

Compared to a differentiator,the cost leader has the advantage over its rivals of

A company pursuing a cost-leadership strategy does which of the following?

When a company produces a wide range of products for different customer groups,it is following a strategy of

Market segmentation is best described as what type of process?

Differentiation is least effective when it is based on

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

To create a successful business model,managers must choose a set of business-level strategies that

For any company,building new competencies in the functions that sustain its differentiation means neglecting its cost structure.

Strategic group analysis allows managers to focus only on what is happening in their group.

The principal dangers of a cost leadership approach include all of the following except

Nick is often asked to perform his clown act for birthday parties and school groups,but he offers his most inexpensive services only to children's hospitals.Nick is pursuing which generic business strategy?

The problem facing differentiators,such as L.L.Bean,is how to protect the distinctiveness of their products from imitators who are constantly searching for ways to steal away customers by offering similar products at lower prices.

Cost leadership is most appropriate when

Which of the following is not a main approach to market segmentation?

To pursue a successful business model,managers must be careful to ensure that the set of business-level strategies they have formulated and implemented are working in harmony to support each other.

Focusers are vulnerable to shifting consumer tastes,which can eliminate their market niche.

Companies that successfully differentiate a product often charge ____ prices for them.

Which of the following automobile manufacturers have found it difficult to differentiate their cars?

For each of the generic strategies¾cost leadership,differentiation,and focus¾describe one advantage and one disadvantage.

A business model based on differentiation requires a company to

Which of the following is not a generic competitive strategy?

Compared to a differentiator,the cost leader has the advantage over its rivals of

A company pursuing a cost-leadership strategy does which of the following?

When a company produces a wide range of products for different customer groups,it is following a strategy of

Market segmentation is best described as what type of process?

Differentiation is least effective when it is based on

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