Question 1

An efficiency frontier shows all of the different positions that a company can adopt with regard to differentiation and cost.

Accepted Answer

A) True 
 B)False  True

Question 2

Yankee Candle Company offers customers candles that burn for 50-60 hours, much longer than most department store candle brands.Therefore, customers are willing to pay a higher price for these candles.Which of the following strategies is Yankee Candle Company following?

Accepted Answer

A) Cost leadership 
B) Rapid growth 
C) Market segmentation 
D) Differentiation 
E) Stuck in the middle 
A) Cost leadership 
B) Rapid growth 
C) Market segmentation 
D) Differentiation 
E) Stuck in the middle D

Question 3

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

Accepted Answer

A) True 
 B)False  False

Question 4

A focused differentiator has the advantage of:

Accepted Answer

A) selling on non-price factors, such as design or customer service. 
B) producing a large product variety without a large cost penalty. 
C) producing a basic offering that is relatively inexpensive to produce and deliver. 
D) being able to respond to demands for deep price discounts. 
E) being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry. 
A) selling on non-price factors, such as design or customer service. 
B) producing a large product variety without a large cost penalty. 
C) producing a basic offering that is relatively inexpensive to produce and deliver. 
D) being able to respond to demands for deep price discounts. 
E) being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

Question 5

A segmentation strategy requires that a company:

Accepted Answer

A) standardize its products. 
B) offer its products at low costs. 
C) customize its products. 
D) produce one basic offering. 
E) attain high economies of scale by achieving a high volume of sales. 
A) standardize its products. 
B) offer its products at low costs. 
C) customize its products. 
D) produce one basic offering. 
E) attain high economies of scale by achieving a high volume of sales.

Question 6

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

Accepted Answer

A) the same as other available products. 
B) distinct from other available products. 
C) the least costly product in the industry. 
D) the most costly product in the industry. 
E) cheaper, but inferior to the available products. 
A) the same as other available products. 
B) distinct from other available products. 
C) the least costly product in the industry. 
D) the most costly product in the industry. 
E) cheaper, but inferior to the available products.

Question 7

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

Accepted Answer

A) prermum 
B) exorbitant 
C) low 
D) average 
E) steep 
A) prermum 
B) exorbitant 
C) low 
D) average 
E) steep

Question 8

A company that follows a low-cost strategy could reasonably be expected to reduce costs by:

Accepted Answer

A) broadening the business processes. 
B) adopting lean production and flexible manufacturing technologies. 
C) implementing first-in-first-out inventory control systems. 
D) taking steps to increase customer chum. 
E) abandoning economies of scale and learning effects. 
A) broadening the business processes. 
B) adopting lean production and flexible manufacturing technologies. 
C) implementing first-in-first-out inventory control systems. 
D) taking steps to increase customer chum. 
E) abandoning economies of scale and learning effects.

Question 9

Nick, a professional magician, is often invited to perform magic tricks at birthday parties and other social gatherings from across the country.However, he offers his services only to clients who stay in the same city as him.He is also known to charge less than other magicians in the city.Nick is pursuing which generic business strategy?

Accepted Answer

A) Improved services 
B) Right-time marketing 
C) Focused low-cost 
D) Broad low-cost 
E) Deterrence strategy 
A) Improved services 
B) Right-time marketing 
C) Focused low-cost 
D) Broad low-cost 
E) Deterrence strategy

Question 10

Which of the following is NOT a generic business-level strategy?

Accepted Answer

A) Broad differentiation strategy 
B) Broad low-cost strategy 
C) Focused low-cost strategy 
D) Focused differentiation strategy 
E) Focused innovation strategy 
A) Broad differentiation strategy 
B) Broad low-cost strategy 
C) Focused low-cost strategy 
D) Focused differentiation strategy 
E) Focused innovation strategy

Question 11

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

Accepted Answer

A) cost leadership 
B) differentiation 
C) customer retention 
D) market concentration 
E) share building 
A) cost leadership 
B) differentiation 
C) customer retention 
D) market concentration 
E) share building

Question 12

A company pursuing a low-cost strategy:

Accepted Answer

A) Improves non-price factors such as design and customer service 
B) Produces a basic offering to reduce cost structures 
C) Keeps advertising expenses at a maximum 
D) Relies on patent protections to keep costs low 
E) Customizes marketing mix to different market segments 
A) Improves non-price factors such as design and customer service 
B) Produces a basic offering to reduce cost structures 
C) Keeps advertising expenses at a maximum 
D) Relies on patent protections to keep costs low 
E) Customizes marketing mix to different market segments

Question 13

A company pursuing a focus strategy:

Accepted Answer

A) attempts to serve all market segments. 
B) concentrates on building market share in one market segment. 
C) typically has more resources at its disposal than a differentiator does. 
D) has a greater impact on costs and revenues. 
E) produce different offerings for different segments. 
A) attempts to serve all market segments. 
B) concentrates on building market share in one market segment. 
C) typically has more resources at its disposal than a differentiator does. 
D) has a greater impact on costs and revenues. 
E) produce different offerings for different segments.

Question 14

Lucy's Swirnwear Boutique offers swirnwear that is targeted at affluent people who can afford to buy expensive, handmade swimsuits.Which of the following approaches to market segmentation is Lucy's Swimwear Boutique using?

Accepted Answer

A) Broad differentiation strategy 
B) Low market segmentation 
C) Medium market segmentation strategy 
D) Broad high-cost strategy 
E) Focus differentiation strategy 
A) Broad differentiation strategy 
B) Low market segmentation 
C) Medium market segmentation strategy 
D) Broad high-cost strategy 
E) Focus differentiation strategy

Question 15

When a company targets a certain segment or niche, and customizes its offering to the needs of that particular segment through the addition of features and functions, the company is pursuing a strategy.

Accepted Answer

A) broad low-cost 
B) broad differentiation 
C) product substitution 
D) focus low-cost 
E) focus differentiation 
A) broad low-cost 
B) broad differentiation 
C) product substitution 
D) focus low-cost 
E) focus differentiation

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Companies that follow a standardization strategy 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 18

The brand loyalty enjoyed by the differentiated company does not protect it from substitute goods and services.

Accepted Answer

A) True 
 B)False

Question 19

At The Luxury Hotel in Miami, Florida, three hotel employees serve the needs of each guest.In every room, a guest can summon a chef, a maid, or a valet by pressing a button at his/her bedside.Which generic business-level strategy is The Luxury Hotel utilizing?

Accepted Answer

A) Cost leadership 
B) Differentiation 
C) Vertical integration 
D) Razor and blade 
E) Brand loyalty 
A) Cost leadership 
B) Differentiation 
C) Vertical integration 
D) Razor and blade 
E) Brand loyalty

Question 20

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

Accepted Answer

A) True 
 B)False

An efficiency frontier shows all of the different positions that a company can adopt with regard to differentiation and cost.

Yankee Candle Company offers customers candles that burn for 50-60 hours, much longer than most department store candle brands.Therefore, customers are willing to pay a higher price for these candles.Which of the following strategies is Yankee Candle Company following?

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

A focused differentiator has the advantage of:

A segmentation strategy requires that a company:

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

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

A company that follows a low-cost strategy could reasonably be expected to reduce costs by:

Which of the following is NOT a generic business-level strategy?

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

A company pursuing a low-cost strategy:

A company pursuing a focus strategy:

Lucy's Swirnwear Boutique offers swirnwear that is targeted at affluent people who can afford to buy expensive, handmade swimsuits.Which of the following approaches to market segmentation is Lucy's Swimwear Boutique using?

When a company targets a certain segment or niche, and customizes its offering to the needs of that particular segment through the addition of features and functions, the company is pursuing a strategy.

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

Companies that follow a standardization strategy ignore the many different market segments in an industry and position their products to appeal to the average customer.

The brand loyalty enjoyed by the differentiated company does not protect it from substitute goods and services.

At The Luxury Hotel in Miami, Florida, three hotel employees serve the needs of each guest.In every room, a guest can summon a chef, a maid, or a valet by pressing a button at his/her bedside.Which generic business-level strategy is The Luxury Hotel utilizing?

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

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

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

An efficiency frontier shows all of the different positions that a company can adopt with regard to differentiation and cost.

Yankee Candle Company offers customers candles that burn for 50-60 hours, much longer than most department store candle brands.Therefore, customers are willing to pay a higher price for these candles.Which of the following strategies is Yankee Candle Company following?

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by initiating price wars and driving weaker rivals out of the industry.

A focused differentiator has the advantage of:

A segmentation strategy requires that a company:

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

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

A company that follows a low-cost strategy could reasonably be expected to reduce costs by:

Which of the following is NOT a generic business-level strategy?

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

A company pursuing a low-cost strategy:

A company pursuing a focus strategy:

Lucy's Swirnwear Boutique offers swirnwear that is targeted at affluent people who can afford to buy expensive, handmade swimsuits.Which of the following approaches to market segmentation is Lucy's Swimwear Boutique using?

When a company targets a certain segment or niche, and customizes its offering to the needs of that particular segment through the addition of features and functions, the company is pursuing a strategy.

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

Companies that follow a standardization strategy ignore the many different market segments in an industry and position their products to appeal to the average customer.

The brand loyalty enjoyed by the differentiated company does not protect it from substitute goods and services.

At The Luxury Hotel in Miami, Florida, three hotel employees serve the needs of each guest.In every room, a guest can summon a chef, a maid, or a valet by pressing a button at his/her bedside.Which generic business-level strategy is The Luxury Hotel utilizing?

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

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

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