Question 1

The way managers situate a firm relative to its rivals is called strategic ________.

Accepted Answer

A)  formation 
B)  implementation 
C)  positioning 
D)  modeling 
A)  formation 
B)  implementation 
C)  positioning 
D)  modeling C

Question 2

Rent and equipment are examples of variable costs.

Accepted Answer

A) True 
 B)False  False

Question 3

What are diseconomies of scale?

Accepted Answer

Diseconomies of scale are conditions under which average total costs per unit of production increases at higher levels of input. Diseconomies of scale can result from bureaucracy, high labor costs, and inefficient operations.

Question 4

Capabilities in large-scale manufacturing and distribution generally favor low-cost strategies.

Accepted Answer

A) True 
 B)False

Question 5

Premium prices for otherwise similar products are paid when a firm is able to uniquely satisfy a customer's needs along the dimensions of all but which of the following?

Accepted Answer

A)  quality 
B)  image 
C)  similarity 
D)  speed 
A)  quality 
B)  image 
C)  similarity 
D)  speed

Question 6

In testing the quality of a firm's strategy, it is important to understand the profit potential of both the firm's current position and the position toward which the strategy is taking the firm.

Accepted Answer

A) True 
 B)False

Question 7

Successful differentiation enables firms to set prices at the industry average and gain market share.

Accepted Answer

A) True 
 B)False

Question 8

Pacific Cycle grabbed the lion's share of the U.S. bicycle market by pioneering the concept of sourcing bicycles from Asia.

Accepted Answer

A) True 
 B)False

Question 9

Differentiation may fail because of all of the following except ________.

Accepted Answer

A)  underfulfillment 
B)  overfulfillment 
C)  ease of imitation 
D)  unusually high quality 
A)  underfulfillment 
B)  overfulfillment 
C)  ease of imitation 
D)  unusually high quality

Question 10

Conditions under which average total costs for a unit of production is lower at higher levels of output are called ________.

Accepted Answer

A)  scope of involvement 
B)  economies of scale 
C)  learning curves 
D)  fixed costs 
A)  scope of involvement 
B)  economies of scale 
C)  learning curves 
D)  fixed costs

Question 11

Jet Blue is an airline company that serves a small subset of commercial travelers who are price sensitive. This company is pursuing a ________ strategic approach.

Accepted Answer

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

Question 12

MES varies by industry and market segment.

Accepted Answer

A) True 
 B)False

Question 13

What are some of the drivers for the low-cost leadership position?

Accepted Answer

Some of the drivers for the lo

Question 14

If a firm can lower production costs by sharing a resource among one or more of its products, it benefits from ________.

Accepted Answer

A)  economies of scope 
B)  learning curve effects 
C)  minimum efficient scales 
D)  economies of scale 
A)  economies of scope 
B)  learning curve effects 
C)  minimum efficient scales 
D)  economies of scale

Question 15

What is the purpose of strategic positioning?

Accepted Answer

The purpose of strategic positioning is

Question 16

Potential sources of cost advantages include all of the following except ________.

Accepted Answer

A)  economies of scope 
B)  production technology 
C)  product design 
D)  brand image 
A)  economies of scope 
B)  production technology 
C)  product design 
D)  brand image

Question 17

What are some the advantages and disadvantages of low-cost leadership?

Accepted Answer

Not surprisingly, a firm that can produc

Question 18

Which of the following is not one of the ways that Gallo Wines uses to achieve its low-cost leadership position?

Accepted Answer

A)  innovative cost-effective blending techniques 
B)  scale economies in distribution 
C)  scale of operations 
D)  scope of involvement 
A)  innovative cost-effective blending techniques 
B)  scale economies in distribution 
C)  scale of operations 
D)  scope of involvement

Question 19

Focus positions may fail because of all of the following except ________.

Accepted Answer

A)  trying to meet the needs of too many customers 
B)  straddling inconsistent positions 
C)  being out-focused by competitors 
D)  attempting to grow beyond the niche 
A)  trying to meet the needs of too many customers 
B)  straddling inconsistent positions 
C)  being out-focused by competitors 
D)  attempting to grow beyond the niche

Question 20

When evaluating the quality of a firm's strategy, the most critical question that should be asked is ________.

Accepted Answer

A)  Does the strategy make sense in the business environment? 
B)  Is the strategy cost effective? 
C)  Can the strategy be implemented? 
D)  Can the strategy be duplicated across similar firms? 
A)  Does the strategy make sense in the business environment? 
B)  Is the strategy cost effective? 
C)  Can the strategy be implemented? 
D)  Can the strategy be duplicated across similar firms?

The way managers situate a firm relative to its rivals is called strategic ________.

Rent and equipment are examples of variable costs.

What are diseconomies of scale?

Capabilities in large-scale manufacturing and distribution generally favor low-cost strategies.

Premium prices for otherwise similar products are paid when a firm is able to uniquely satisfy a customer's needs along the dimensions of all but which of the following?

In testing the quality of a firm's strategy, it is important to understand the profit potential of both the firm's current position and the position toward which the strategy is taking the firm.

Successful differentiation enables firms to set prices at the industry average and gain market share.

Pacific Cycle grabbed the lion's share of the U.S. bicycle market by pioneering the concept of sourcing bicycles from Asia.

Differentiation may fail because of all of the following except ________.

Conditions under which average total costs for a unit of production is lower at higher levels of output are called ________.

Jet Blue is an airline company that serves a small subset of commercial travelers who are price sensitive. This company is pursuing a ________ strategic approach.

MES varies by industry and market segment.

What are some of the drivers for the low-cost leadership position?

If a firm can lower production costs by sharing a resource among one or more of its products, it benefits from ________.

What is the purpose of strategic positioning?

Potential sources of cost advantages include all of the following except ________.

What are some the advantages and disadvantages of low-cost leadership?

Which of the following is not one of the ways that Gallo Wines uses to achieve its low-cost leadership position?

Focus positions may fail because of all of the following except ________.

When evaluating the quality of a firm's strategy, the most critical question that should be asked is ________.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters

Exam 5: Creating Business Strategies

The way managers situate a firm relative to its rivals is called strategic ________.

Rent and equipment are examples of variable costs.

What are diseconomies of scale?

Capabilities in large-scale manufacturing and distribution generally favor low-cost strategies.

Premium prices for otherwise similar products are paid when a firm is able to uniquely satisfy a customer's needs along the dimensions of all but which of the following?

In testing the quality of a firm's strategy, it is important to understand the profit potential of both the firm's current position and the position toward which the strategy is taking the firm.

Successful differentiation enables firms to set prices at the industry average and gain market share.

Pacific Cycle grabbed the lion's share of the U.S. bicycle market by pioneering the concept of sourcing bicycles from Asia.

Differentiation may fail because of all of the following except ________.

Conditions under which average total costs for a unit of production is lower at higher levels of output are called ________.

Jet Blue is an airline company that serves a small subset of commercial travelers who are price sensitive. This company is pursuing a ________ strategic approach.

MES varies by industry and market segment.

What are some of the drivers for the low-cost leadership position?

If a firm can lower production costs by sharing a resource among one or more of its products, it benefits from ________.

What is the purpose of strategic positioning?

Potential sources of cost advantages include all of the following except ________.

What are some the advantages and disadvantages of low-cost leadership?

Which of the following is not one of the ways that Gallo Wines uses to achieve its low-cost leadership position?

Focus positions may fail because of all of the following except ________.

When evaluating the quality of a firm's strategy, the most critical question that should be asked is ________.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Exploring the External Environment: Macro Industry and Dynamics

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters