Question 1

Which statement regarding competitive advantages is true?

Accepted Answer

A)  With an overall cost leadership strategy, firms need not be concerned with parity on differentiation. 
B)  In the long run, a business with one or more competitive advantages is probably destined to earn normal profits. 
C)  If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer. 
D)  Attaining multiple types of competitive advantage is a recipe for failure. 
A)  With an overall cost leadership strategy, firms need not be concerned with parity on differentiation. 
B)  In the long run, a business with one or more competitive advantages is probably destined to earn normal profits. 
C)  If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer. 
D)  Attaining multiple types of competitive advantage is a recipe for failure.

Question 2

A firm following a focus strategy must focus on

Accepted Answer

A)  governmental regulations. 
B)  a market segment or group of segments. 
C)  rising cost of inputs. 
D)  avoiding entering international markets. 
A)  governmental regulations. 
B)  a market segment or group of segments. 
C)  rising cost of inputs. 
D)  avoiding entering international markets.

Question 3

Underestimating expenses associated with coordinating value-creating activities in the extended value chain can be a result of ________ integration of cost leadership and differentiation.

Accepted Answer

A)  good 
B)  poor 
C)  intentional 
D)  structured 
A)  good 
B)  poor 
C)  intentional 
D)  structured

Question 4

Caterpillar collects and analyses large volumes of data about how customers use their tractors.This permits them to ________ the cost of new product development efforts and to better ________ their products.

Accepted Answer

A)  increase; differentiate 
B)  reduce; differentiate 
C)  position; understand 
D)  identify; disperse 
A)  increase; differentiate 
B)  reduce; differentiate 
C)  position; understand 
D)  identify; disperse

Question 5

A manufacturing business pursuing cost leadership is likely to

Accepted Answer

A)  focus on a narrow market segment. 
B)  use advertising to build brand image. 
C)  put heavy emphasis on product engineering. 
D)  rely on experience effects to raise efficiency. 
A)  focus on a narrow market segment. 
B)  use advertising to build brand image. 
C)  put heavy emphasis on product engineering. 
D)  rely on experience effects to raise efficiency.

Which statement regarding competitive advantages is true?

A firm following a focus strategy must focus on

Underestimating expenses associated with coordinating value-creating activities in the extended value chain can be a result of ________ integration of cost leadership and differentiation.

Caterpillar collects and analyses large volumes of data about how customers use their tractors.This permits them to the cost of new product development efforts and to better their products.

A manufacturing business pursuing cost leadership is likely to

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

Which statement regarding competitive advantages is true?

A firm following a focus strategy must focus on

Underestimating expenses associated with coordinating value-creating activities in the extended value chain can be a result of ________ integration of cost leadership and differentiation.

Caterpillar collects and analyses large volumes of data about how customers use their tractors.This permits them to ________ the cost of new product development efforts and to better ________ their products.

A manufacturing business pursuing cost leadership is likely to

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

Caterpillar collects and analyses large volumes of data about how customers use their tractors.This permits them to the cost of new product development efforts and to better their products.