Question 1

A focused differentiator has the advantage of

Accepted Answer

A) charging a premium price because of its low costs. 
B) pursuing differentiation and low-cost strategies simultaneously. 
C) being close to the customer. 
D) superior materials management. 
E) protection against price wars. 
A) charging a premium price because of its low costs. 
B) pursuing differentiation and low-cost strategies simultaneously. 
C) being close to the customer. 
D) superior materials management. 
E) protection against price wars.

Question 2

Companies with a differentiation advantage must charge a lower price for their products.

Accepted Answer

A) True 
 B)False

Question 3

What is meant by the term strategic group and why is it important for managers to understand this term to position their companies in a competitive marketplace?

Accepted Answer

A company's business model determines ho

Question 4

At their simplest level,customer needs can be defined as

Accepted Answer

A) desires. 
B) wants. 
C) cravings. 
D) all of these choices. 
E) none of these choices. 
A) desires. 
B) wants. 
C) cravings. 
D) all of these choices. 
E) none of these choices.

Question 5

A cost leader could reasonably be expected to reduce costs by developing distinctive competencies in all but

Accepted Answer

A) manufacturing. 
B) materials management. 
C) marketing and sales. 
D) information technology. 
E) learning organizational structure. 
A) manufacturing. 
B) materials management. 
C) marketing and sales. 
D) information technology. 
E) learning organizational structure.

Question 6

Crowne Plaza,Hampton Inn,and Embassy Suites were created by Holiday Inn in response to competition in the hotel-motel industry.

Accepted Answer

A) True 
 B)False

Question 7

A company searching for a successful business model has to group customers according to the similarities or differences in their needs to discover what kinds of products to develop that will best meet the needs of different kinds of customers.

Accepted Answer

A) True 
 B)False

Question 8

Once a focused differentiator gains competitive advantage in its market,the threat of competitive rivalry is greatly reduced.

Accepted Answer

A) True 
 B)False

Question 9

A producer of commodity steel should pursue which of the following generic competitive strategies?

Accepted Answer

A) Growth 
B) Differentiation 
C) Focus 
D) Cost leadership 
E) Profit 
A) Growth 
B) Differentiation 
C) Focus 
D) Cost leadership 
E) Profit

Question 10

When a company services the broad market and has a low degree of product differentiation,it is most likely

Accepted Answer

A) pursuing a cost-leadership strategy. 
B) pursuing a differentiation strategy. 
C) pursuing a focus strategy. 
D) stuck in the middle. 
E) pursuing both cost leadership and differentiation. 
A) pursuing a cost-leadership strategy. 
B) pursuing a differentiation strategy. 
C) pursuing a focus strategy. 
D) stuck in the middle. 
E) pursuing both cost leadership and differentiation.

Question 11

The main difference between companies following a cost leadership strategy and those following a focused cost leadership strategy is

Accepted Answer

A) standardized market price. 
B) industry life cycle stage. 
C) degree of market segmentation. 
D) age of the market. 
E) market trajectory. 
A) standardized market price. 
B) industry life cycle stage. 
C) degree of market segmentation. 
D) age of the market. 
E) market trajectory.

Question 12

Empirical evidence shows that firms that pursue cost leadership or differentiation achieve returns that are about equivalent,firms that pursue both cost leadership and differentiation have the highest returns,and firms that are stuck in the middle have the lowest returns.Using concepts from this chapter,explain why this is so.

Accepted Answer

Firms that pursue cost leadership benefi

Question 13

A differentiation strategy is based on creating a product that customers perceive as being

Accepted Answer

A) about the same as other available products. 
B) distinct. 
C) the least costly product in the industry. 
D) the most costly product in the industry. 
E) somewhat faddish in nature. 
A) about the same as other available products. 
B) distinct. 
C) the least costly product in the industry. 
D) the most costly product in the industry. 
E) somewhat faddish in nature.

Question 14

Which generic business-level strategy is based on the intent to outperform competitors by doing everything a company can to lower its cost structure?

Accepted Answer

A) Cost leadership 
B) Differentiation 
C) Broad differentiation 
D) Focused differentiation 
E) None of these choices 
A) Cost leadership 
B) Differentiation 
C) Broad differentiation 
D) Focused differentiation 
E) None of these choices

Question 15

What does the broad differentiation business model look like and how can this model benefit companies that employ it?

Accepted Answer

Broad differentiation is a business mode

Question 16

A market segment consists of a group of

Accepted Answer

A) similar products. 
B) customers who have similar needs. 
C) companies who produce similar products. 
D) diverse products produced by one manufacturer. 
E) customers who have diverse needs. 
A) similar products. 
B) customers who have similar needs. 
C) companies who produce similar products. 
D) diverse products produced by one manufacturer. 
E) customers who have diverse needs.

Question 17

Differentiators have higher costs than cost leaders do for all of the following reasons except that they

Accepted Answer

A) invest more in research and development. 
B) invest in materials management techniques. 
C) provide a wider range of products. 
D) serve more market segments. 
E) have larger marketing departments. 
A) invest more in research and development. 
B) invest in materials management techniques. 
C) provide a wider range of products. 
D) serve more market segments. 
E) have larger marketing departments.

Question 18

A major problem with a differentiation strategy centers on the long-term ability to maintain a product's perceived difference or distinctness in customers' eyes.

Accepted Answer

A) True 
 B)False

Question 19

Cost leaders ignore the many different market segments in an industry and position their products to appeal to the average customer.

Accepted Answer

A) True 
 B)False

Question 20

A large company produces a variety of clothing for different customer groups.This firm is pursuing which of the following strategies?

Accepted Answer

A) Cost leadership 
B) Differentiation 
C) Both cost and differentiation 
D) Focus 
E) Share building 
A) Cost leadership 
B) Differentiation 
C) Both cost and differentiation 
D) Focus 
E) Share building

A focused differentiator has the advantage of

Companies with a differentiation advantage must charge a lower price for their products.

What is meant by the term strategic group and why is it important for managers to understand this term to position their companies in a competitive marketplace?

At their simplest level,customer needs can be defined as

A cost leader could reasonably be expected to reduce costs by developing distinctive competencies in all but

Crowne Plaza,Hampton Inn,and Embassy Suites were created by Holiday Inn in response to competition in the hotel-motel industry.

A company searching for a successful business model has to group customers according to the similarities or differences in their needs to discover what kinds of products to develop that will best meet the needs of different kinds of customers.

Once a focused differentiator gains competitive advantage in its market,the threat of competitive rivalry is greatly reduced.

A producer of commodity steel should pursue which of the following generic competitive strategies?

When a company services the broad market and has a low degree of product differentiation,it is most likely

The main difference between companies following a cost leadership strategy and those following a focused cost leadership strategy is

A differentiation strategy is based on creating a product that customers perceive as being

Which generic business-level strategy is based on the intent to outperform competitors by doing everything a company can to lower its cost structure?

What does the broad differentiation business model look like and how can this model benefit companies that employ it?

A market segment consists of a group of

Differentiators have higher costs than cost leaders do for all of the following reasons except that they

A major problem with a differentiation strategy centers on the long-term ability to maintain a product's perceived difference or distinctness in customers' eyes.

Cost leaders ignore the many different market segments in an industry and position their products to appeal to the average customer.

A large company produces a variety of clothing for different customer groups.This firm is pursuing which of the following strategies?

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

A focused differentiator has the advantage of

Companies with a differentiation advantage must charge a lower price for their products.

What is meant by the term strategic group and why is it important for managers to understand this term to position their companies in a competitive marketplace?

At their simplest level,customer needs can be defined as

A cost leader could reasonably be expected to reduce costs by developing distinctive competencies in all but

Crowne Plaza,Hampton Inn,and Embassy Suites were created by Holiday Inn in response to competition in the hotel-motel industry.

A company searching for a successful business model has to group customers according to the similarities or differences in their needs to discover what kinds of products to develop that will best meet the needs of different kinds of customers.

Once a focused differentiator gains competitive advantage in its market,the threat of competitive rivalry is greatly reduced.

A producer of commodity steel should pursue which of the following generic competitive strategies?

When a company services the broad market and has a low degree of product differentiation,it is most likely

The main difference between companies following a cost leadership strategy and those following a focused cost leadership strategy is

A differentiation strategy is based on creating a product that customers perceive as being

Which generic business-level strategy is based on the intent to outperform competitors by doing everything a company can to lower its cost structure?

What does the broad differentiation business model look like and how can this model benefit companies that employ it?

A market segment consists of a group of

Differentiators have higher costs than cost leaders do for all of the following reasons except that they

A major problem with a differentiation strategy centers on the long-term ability to maintain a product's perceived difference or distinctness in customers' eyes.

Cost leaders ignore the many different market segments in an industry and position their products to appeal to the average customer.

A large company produces a variety of clothing for different customer groups.This firm is pursuing which of the following strategies?

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