Question 1

BlackBerry lost its competitive advantage by 2016 because it

Accepted Answer

A)  did not deliver innovations to respond to changing market demand. 
B)  developed a highly performant just-in-time delivery system. 
C)  did not reward its employees. 
D)  let suppliers have dominant power. 
A)  did not deliver innovations to respond to changing market demand. 
B)  developed a highly performant just-in-time delivery system. 
C)  did not reward its employees. 
D)  let suppliers have dominant power.

Question 2

Caterpillar uses data analytics to differentiate itself from competitors by providing information services.

Accepted Answer

A) True 
 B)False

Question 3

A need for turnaround occurs only during the maturity or declining stage of the life cycle.

Accepted Answer

A) True 
 B)False

Question 4

Outright sales or sale and leaseback free up considerable cash and improve returns.This is an example of which turnaround strategy used by successful companies?

Accepted Answer

A)  asset and cost surgery 
B)  selective product and market pruning 
C)  piecemeal productivity improvements 
D)  global expansion 
A)  asset and cost surgery 
B)  selective product and market pruning 
C)  piecemeal productivity improvements 
D)  global expansion

Question 5

A platform business is like a matchmaker in that it can bring together buyers and sellers.An example of a successful platform provider is Facebook.By attracting and retaining users through expanding services it differentiates itself from more narrowly-focused competitors such as Twitter.

Accepted Answer

A) True 
 B)False

Question 6

Ryanair and Spirit Airlines depend upon revenue from services not related to the actual flight.These services increase their

Accepted Answer

A)  costs. 
B)  services. 
C)  profit pool. 
D)  difficulties. 
A)  costs. 
B)  services. 
C)  profit pool. 
D)  difficulties.

Question 7

Airlines such as Emirates exploit the profit pool for competitive advantage by adding fees for a variety of services such as access to airport lounges.

Accepted Answer

A) True 
 B)False

Question 8

An overall ________ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

Accepted Answer

A)  differentiation 
B)  low-cost 
C)  focused 
D)  high-cost 
A)  differentiation 
B)  low-cost 
C)  focused 
D)  high-cost

Question 9

Most turnarounds require a firm to carefully analyze its relevant environments.The ________ analysis leads to identification of market segments or customer groups that may still find the product attractive.

Accepted Answer

A)  external 
B)  internal 
C)  global 
D)  environmental 
A)  external 
B)  internal 
C)  global 
D)  environmental

Question 10

The experience curve is a factor central to an overall cost leadership strategy and refers to how business learns to increase costs as it gains experience with production processes.

Accepted Answer

A) True 
 B)False

Question 11

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry.

Accepted Answer

A) True 
 B)False

Question 12

Atlas Door created competitive advantages in overall low cost and differentiation by creating ________ among value-chain activities.

Accepted Answer

A)  substitutes 
B)  advantages 
C)  disadvantages 
D)  linkages 
A)  substitutes 
B)  advantages 
C)  disadvantages 
D)  linkages

Question 13

Which of the following statements about the introduction stage of the market life cycle is true?

Accepted Answer

A)  It produces relatively large, positive cash flows. 
B)  Strong brand recognition seldom serves as an important switching cost. 
C)  Market share gains by pioneers are usually easily sustained for many years. 
D)  Products offered by pioneers may be perceived as differentiated because they are new. 
A)  It produces relatively large, positive cash flows. 
B)  Strong brand recognition seldom serves as an important switching cost. 
C)  Market share gains by pioneers are usually easily sustained for many years. 
D)  Products offered by pioneers may be perceived as differentiated because they are new.

Question 14

Zulily protects itself from buyer power and intense rivalry from competitors by

Accepted Answer

A)  increasing the bargaining power of its customers. 
B)  paying close attention to costs. 
C)  increasing costs. 
D)  increasing the buyer power. 
A)  increasing the bargaining power of its customers. 
B)  paying close attention to costs. 
C)  increasing costs. 
D)  increasing the buyer power.

Question 15

Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy?

Accepted Answer

A)  Firms that target too large a market that causes unit costs to increase. 
B)  Firms that underestimate the expenses associated with coordinating value-creating activities in the extended value chain. 
C)  Firms that fail to attain both strategies may end up with neither and become stuck-in-the-middle. 
D)  Firms that miscalculate sources of revenue and profit pools in the company industry. 
A)  Firms that target too large a market that causes unit costs to increase. 
B)  Firms that underestimate the expenses associated with coordinating value-creating activities in the extended value chain. 
C)  Firms that fail to attain both strategies may end up with neither and become stuck-in-the-middle. 
D)  Firms that miscalculate sources of revenue and profit pools in the company industry.

Question 16

An overall low-cost position enables a firm to achieve ________ returns despite strong competition.

Accepted Answer

A)  below average 
B)  average 
C)  no 
D)  above average 
A)  below average 
B)  average 
C)  no 
D)  above average

Question 17

A platform business such as Airbnb leverages data analytics to differentiate its offer from that of competitors such as VRBO.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a potential pitfall of a differentiation strategy?

Accepted Answer

A)  Uniqueness that is not valuable. 
B)  The price premium is too high. 
C)  All rivals share a common input or raw material. 
D)  Perceptions of differentiation may vary between buyers and sellers. 
A)  Uniqueness that is not valuable. 
B)  The price premium is too high. 
C)  All rivals share a common input or raw material. 
D)  Perceptions of differentiation may vary between buyers and sellers.

Question 19

Piecemeal productivity improvements can be used by a mature business in need of a turnaround.

Accepted Answer

A) True 
 B)False

Question 20

Proctor and Gamble announced that it would sell off or close down up to 100 of its brands.This is an example of which turnaround strategy used by successful companies?

Accepted Answer

A)  asset and cost surgery 
B)  selective product and market pruning 
C)  piecemeal productivity improvements 
D)  global expansion 
A)  asset and cost surgery 
B)  selective product and market pruning 
C)  piecemeal productivity improvements 
D)  global expansion

BlackBerry lost its competitive advantage by 2016 because it

Caterpillar uses data analytics to differentiate itself from competitors by providing information services.

A need for turnaround occurs only during the maturity or declining stage of the life cycle.

Outright sales or sale and leaseback free up considerable cash and improve returns.This is an example of which turnaround strategy used by successful companies?

A platform business is like a matchmaker in that it can bring together buyers and sellers.An example of a successful platform provider is Facebook.By attracting and retaining users through expanding services it differentiates itself from more narrowly-focused competitors such as Twitter.

Ryanair and Spirit Airlines depend upon revenue from services not related to the actual flight.These services increase their

Airlines such as Emirates exploit the profit pool for competitive advantage by adding fees for a variety of services such as access to airport lounges.

An overall ________ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

Most turnarounds require a firm to carefully analyze its relevant environments.The ________ analysis leads to identification of market segments or customer groups that may still find the product attractive.

The experience curve is a factor central to an overall cost leadership strategy and refers to how business learns to increase costs as it gains experience with production processes.

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry.

Atlas Door created competitive advantages in overall low cost and differentiation by creating ________ among value-chain activities.

Which of the following statements about the introduction stage of the market life cycle is true?

Zulily protects itself from buyer power and intense rivalry from competitors by

Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy?

An overall low-cost position enables a firm to achieve ________ returns despite strong competition.

A platform business such as Airbnb leverages data analytics to differentiate its offer from that of competitors such as VRBO.

Which of the following is not a potential pitfall of a differentiation strategy?

Piecemeal productivity improvements can be used by a mature business in need of a turnaround.

Proctor and Gamble announced that it would sell off or close down up to 100 of its brands.This is an example of which turnaround strategy used by successful companies?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets: Moving Beyond a Firm's Tangible Resources

Corporate-level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

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Exam 5: Business-level Strategy: Creating and Sustaining Competitive Advantages

BlackBerry lost its competitive advantage by 2016 because it

Caterpillar uses data analytics to differentiate itself from competitors by providing information services.

A need for turnaround occurs only during the maturity or declining stage of the life cycle.

Outright sales or sale and leaseback free up considerable cash and improve returns.This is an example of which turnaround strategy used by successful companies?

A platform business is like a matchmaker in that it can bring together buyers and sellers.An example of a successful platform provider is Facebook.By attracting and retaining users through expanding services it differentiates itself from more narrowly-focused competitors such as Twitter.

Ryanair and Spirit Airlines depend upon revenue from services not related to the actual flight.These services increase their

Airlines such as Emirates exploit the profit pool for competitive advantage by adding fees for a variety of services such as access to airport lounges.

An overall ________ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

Most turnarounds require a firm to carefully analyze its relevant environments.The ________ analysis leads to identification of market segments or customer groups that may still find the product attractive.

The experience curve is a factor central to an overall cost leadership strategy and refers to how business learns to increase costs as it gains experience with production processes.

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry.

Atlas Door created competitive advantages in overall low cost and differentiation by creating ________ among value-chain activities.

Which of the following statements about the introduction stage of the market life cycle is true?

Zulily protects itself from buyer power and intense rivalry from competitors by

Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy?

An overall low-cost position enables a firm to achieve ________ returns despite strong competition.

A platform business such as Airbnb leverages data analytics to differentiate its offer from that of competitors such as VRBO.

Which of the following is not a potential pitfall of a differentiation strategy?

Piecemeal productivity improvements can be used by a mature business in need of a turnaround.

Proctor and Gamble announced that it would sell off or close down up to 100 of its brands.This is an example of which turnaround strategy used by successful companies?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets: Moving Beyond a Firm's Tangible Resources

Corporate-level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters