Question 1

Market segmentation addresses the "what" portion of a firm's business model.

Accepted Answer

A) True 
 B)False

Question 2

The three generic business-level strategies are cost leadership,differentiation,and mass marketing.

Accepted Answer

A) True 
 B)False

Question 3

Mercedes-Benz automobiles are a good example of

Accepted Answer

A) moderately priced products. 
B) imitative products. 
C) differentiated products. 
D) products that are struggling to differentiate. 
E) highly competitive products. 
A) moderately priced products. 
B) imitative products. 
C) differentiated products. 
D) products that are struggling to differentiate. 
E) highly competitive products.

Question 4

A company pursuing a focused differentiation business model

Accepted Answer

A) manufactures products for a generic consumer market. 
B) typically has little competition. 
C) specializes in making products for one or two market segments. 
D) is likely to enjoy monopoly-like status in its industry. 
E) bases its strategy on low costs. 
A) manufactures products for a generic consumer market. 
B) typically has little competition. 
C) specializes in making products for one or two market segments. 
D) is likely to enjoy monopoly-like status in its industry. 
E) bases its strategy on low costs.

Question 5

Jordan's ice cream stand offers different combinations of premium flavors,cones,and toppings to create hundreds of extravagant,customized products.Which generic strategy is Jordan following in the restaurant industry?

Accepted Answer

A) Cost leadership 
B) Differentiation 
C) Focused cost leadership 
D) Focused differentiation 
E) Both cost leadership and differentiation simultaneously 
A) Cost leadership 
B) Differentiation 
C) Focused cost leadership 
D) Focused differentiation 
E) Both cost leadership and differentiation simultaneously

Question 6

Generally speaking,a differentiator chooses to divide its market into

Accepted Answer

A) one generic market. 
B) two or three major segments. 
C) niches and segments in which customers will pay premium prices. 
D) as few segments as possible. 
E) None of these choices. 
A) one generic market. 
B) two or three major segments. 
C) niches and segments in which customers will pay premium prices. 
D) as few segments as possible. 
E) None of these choices.

Question 7

A disadvantage of pursuing a cost leadership strategy is that

Accepted Answer

A) technological change can make production methods obsolete. 
B) price wars make it hard to compete with differentiators. 
C) it costs more than a differentiation strategy because of the necessity of high capital investments. 
D) powerful buyers are a major threat. 
E) no quality control exists. 
A) technological change can make production methods obsolete. 
B) price wars make it hard to compete with differentiators. 
C) it costs more than a differentiation strategy because of the necessity of high capital investments. 
D) powerful buyers are a major threat. 
E) no quality control exists.

Question 8

Differentiation leads to high brand loyalty,which in turn reduces the threat of new firms entering the industry.

Accepted Answer

A) True 
 B)False

Question 9

Both the way a product is differentiated from other products of its type and the price of the product determine which product a customer chooses to satisfy his or her needs.

Accepted Answer

A) True 
 B)False

Question 10

E*Trade,the online brokerage company,is an example of a new entrant to an industry that has used the Internet to overcome barriers to entry and compete successfully against market leaders.

Accepted Answer

A) True 
 B)False

Question 11

Differentiated products should be targeted at multiple market segments (instead of a particular segment)if a company has a distinctive competency in

Accepted Answer

A) marketing. 
B) research and development. 
C) accounting. 
D) materials management. 
E) human resources. 
A) marketing. 
B) research and development. 
C) accounting. 
D) materials management. 
E) human resources.

Question 12

A competitor's ability to ____ a cost leader's methods is a threat to a cost-leadership strategy.

Accepted Answer

A) negate 
B) subvert 
C) control 
D) repudiate 
E) imitate 
A) negate 
B) subvert 
C) control 
D) repudiate 
E) imitate

Question 13

If consumer tastes change and a focuser's niche disappears,the danger for the focuser is that it might have difficulty shifting resources from its niche to another market segment.

Accepted Answer

A) True 
 B)False

Question 14

Market segmentation is an evolving,ongoing process that presents considerable opportunities for strategic managers to improve their company's business model.

Accepted Answer

A) True 
 B)False

Question 15

A differentiated product is a product that

Accepted Answer

A) looks different from rival products. 
B) better satisfies customer needs than rival products do. 
C) is packaged in a unique and eye-appealing manner. 
D) always costs more than rival products. 
E) always costs less than rival products. 
A) looks different from rival products. 
B) better satisfies customer needs than rival products do. 
C) is packaged in a unique and eye-appealing manner. 
D) always costs more than rival products. 
E) always costs less than rival products.

Question 16

Companies that successfully pursue a cost leadership strategy generally have a distinctive competency in research and development.

Accepted Answer

A) True 
 B)False

Question 17

Differentiation on the basis of innovation and technological competency depends on the research and development function.

Accepted Answer

A) True 
 B)False

Question 18

A firm's business model should contain three components: what is to be satisfied,who is to be satisfied,and how they will be satisfied.

Accepted Answer

A) True 
 B)False

Question 19

The most expensive competitive strategy to pursue is

Accepted Answer

A) differentiation. 
B) cost leadership. 
C) focus. 
D) growth. 
E) hypercompetition. 
A) differentiation. 
B) cost leadership. 
C) focus. 
D) growth. 
E) hypercompetition.

Question 20

For a cost lead in manufacturing,____ functions are the center of attention.

Accepted Answer

A) research and development 
B) cost accounting 
C) sales management 
D) materials-management 
E) advertising 
A) research and development 
B) cost accounting 
C) sales management 
D) materials-management 
E) advertising

Market segmentation addresses the "what" portion of a firm's business model.

The three generic business-level strategies are cost leadership,differentiation,and mass marketing.

Mercedes-Benz automobiles are a good example of

A company pursuing a focused differentiation business model

Jordan's ice cream stand offers different combinations of premium flavors,cones,and toppings to create hundreds of extravagant,customized products.Which generic strategy is Jordan following in the restaurant industry?

Generally speaking,a differentiator chooses to divide its market into

A disadvantage of pursuing a cost leadership strategy is that

Differentiation leads to high brand loyalty,which in turn reduces the threat of new firms entering the industry.

Both the way a product is differentiated from other products of its type and the price of the product determine which product a customer chooses to satisfy his or her needs.

E*Trade,the online brokerage company,is an example of a new entrant to an industry that has used the Internet to overcome barriers to entry and compete successfully against market leaders.

Differentiated products should be targeted at multiple market segments (instead of a particular segment)if a company has a distinctive competency in

A competitor's ability to ____ a cost leader's methods is a threat to a cost-leadership strategy.

If consumer tastes change and a focuser's niche disappears,the danger for the focuser is that it might have difficulty shifting resources from its niche to another market segment.

Market segmentation is an evolving,ongoing process that presents considerable opportunities for strategic managers to improve their company's business model.

A differentiated product is a product that

Companies that successfully pursue a cost leadership strategy generally have a distinctive competency in research and development.

Differentiation on the basis of innovation and technological competency depends on the research and development function.

A firm's business model should contain three components: what is to be satisfied,who is to be satisfied,and how they will be satisfied.

The most expensive competitive strategy to pursue is

For a cost lead in manufacturing,____ functions are the center of attention.

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

Market segmentation addresses the "what" portion of a firm's business model.

The three generic business-level strategies are cost leadership,differentiation,and mass marketing.

Mercedes-Benz automobiles are a good example of

A company pursuing a focused differentiation business model

Jordan's ice cream stand offers different combinations of premium flavors,cones,and toppings to create hundreds of extravagant,customized products.Which generic strategy is Jordan following in the restaurant industry?

Generally speaking,a differentiator chooses to divide its market into

A disadvantage of pursuing a cost leadership strategy is that

Differentiation leads to high brand loyalty,which in turn reduces the threat of new firms entering the industry.

Both the way a product is differentiated from other products of its type and the price of the product determine which product a customer chooses to satisfy his or her needs.

E*Trade,the online brokerage company,is an example of a new entrant to an industry that has used the Internet to overcome barriers to entry and compete successfully against market leaders.

Differentiated products should be targeted at multiple market segments (instead of a particular segment)if a company has a distinctive competency in

A competitor's ability to ____ a cost leader's methods is a threat to a cost-leadership strategy.

If consumer tastes change and a focuser's niche disappears,the danger for the focuser is that it might have difficulty shifting resources from its niche to another market segment.

Market segmentation is an evolving,ongoing process that presents considerable opportunities for strategic managers to improve their company's business model.

A differentiated product is a product that

Companies that successfully pursue a cost leadership strategy generally have a distinctive competency in research and development.

Differentiation on the basis of innovation and technological competency depends on the research and development function.

A firm's business model should contain three components: what is to be satisfied,who is to be satisfied,and how they will be satisfied.

The most expensive competitive strategy to pursue is

For a cost lead in manufacturing,____ functions are the center of attention.

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