Question 1

What is willingness to pay and how does it impact strategic positioning?

Accepted Answer

Willingness to pay is a principle of dif

Question 2

The generic strategy typology has managers start by identifying the intended ________ of their strategy.

Accepted Answer

A)  customers 
B)  human resources 
C)  discrete components 
D)  economic logic 
A)  customers 
B)  human resources 
C)  discrete components 
D)  economic logic

Question 3

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

Accepted Answer

A)  lower prices over those of competitors and gain higher margins 
B)  raise prices over those of competitors and gain higher margins 
C)  set prices above industry average and gain a smaller market share 
D)  set prices below industry average and gain a larger market share 
A)  lower prices over those of competitors and gain higher margins 
B)  raise prices over those of competitors and gain higher margins 
C)  set prices above industry average and gain a smaller market share 
D)  set prices below industry average and gain a larger market share

Question 4

Firms operating above the minimum efficient scale (MES) have a cost advantage.

Accepted Answer

A) True 
 B)False

Question 5

How does IKEA successfully pursue the integrated position?

Accepted Answer

IKEA's success can be traced to its vast

Question 6

The elements of a firm's strategy diamond must be internally consistent, but it is not necessary for them to be aligned with the firm's strategic position.

Accepted Answer

A) True 
 B)False

Question 7

Heavy reliance on branding enables McDonald's to position itself as a reliable, high-quality provider of low-cost fast food. If McDonald's achieves a(n) ________ position, it will be able to command higher prices than its competitors.

Accepted Answer

A)  diverse 
B)  focused 
C)  integrated 
D)  independent 
A)  diverse 
B)  focused 
C)  integrated 
D)  independent

Question 8

What is the differentiation approach?

Accepted Answer

The differentiation approach is a strate

Question 9

A frequent flyer program is an example of a barrier to customer mobility.

Accepted Answer

A) True 
 B)False

Question 10

In labor-intensive industries, the most serious threat faced by low-cost competitors is ________.

Accepted Answer

A)  increased use of technology 
B)  increased public awareness of questionable labor practices 
C)  increased product efficiency 
D)  increased competition 
A)  increased use of technology 
B)  increased public awareness of questionable labor practices 
C)  increased product efficiency 
D)  increased competition

Question 11

Large-scale operations lead to greater flexibility and reduced costs.

Accepted Answer

A) True 
 B)False

Question 12

During the initial stages of finding a position that works for a firm, strategists decide if they will compete based on the logic of being a low-cost leader or as a ________.

Accepted Answer

A)  differentiator 
B)  mid-level competitor 
C)  unique product operation 
D)  generic brand 
A)  differentiator 
B)  mid-level competitor 
C)  unique product operation 
D)  generic brand

Question 13

What is consolidation and what motivates it?

Accepted Answer

Consolidation is the combining

Question 14

All of the following are drivers for the low-cost strategic position except ________.

Accepted Answer

A)  customization 
B)  economies of scale 
C)  superior product design 
D)  learning 
A)  customization 
B)  economies of scale 
C)  superior product design 
D)  learning

Question 15

Marginal cost is the mean cost of total production during a given period.

Accepted Answer

A) True 
 B)False

Question 16

The company that has the lowest operating costs of the major airlines is ________.

Accepted Answer

A)  Southwest Airlines 
B)  Sky West Airlines 
C)  Delta Airlines 
D)  JetBlue 
A)  Southwest Airlines 
B)  Sky West Airlines 
C)  Delta Airlines 
D)  JetBlue

Question 17

Why is market analysis critical to successful pursuit of the differentiation strategy?

Accepted Answer

In practice, a differentiation strategy

Question 18

By creating a sustainable cost gap over rivals, firms earn above industry-average profits.

Accepted Answer

A) True 
 B)False

Question 19

During the ________ stage of the industry life cycle, products become more familiar and product information is more widely available.

Accepted Answer

A)  embryonic 
B)  growth 
C)  maturity 
D)  decline 
A)  embryonic 
B)  growth 
C)  maturity 
D)  decline

Question 20

Why can't United and Delta Airlines lower their costs to match those of Southwest?

Accepted Answer

Many of the specific practices by which

What is willingness to pay and how does it impact strategic positioning?

The generic strategy typology has managers start by identifying the intended ________ of their strategy.

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

Firms operating above the minimum efficient scale (MES) have a cost advantage.

How does IKEA successfully pursue the integrated position?

The elements of a firm's strategy diamond must be internally consistent, but it is not necessary for them to be aligned with the firm's strategic position.

Heavy reliance on branding enables McDonald's to position itself as a reliable, high-quality provider of low-cost fast food. If McDonald's achieves a(n) ________ position, it will be able to command higher prices than its competitors.

What is the differentiation approach?

A frequent flyer program is an example of a barrier to customer mobility.

In labor-intensive industries, the most serious threat faced by low-cost competitors is ________.

Large-scale operations lead to greater flexibility and reduced costs.

During the initial stages of finding a position that works for a firm, strategists decide if they will compete based on the logic of being a low-cost leader or as a ________.

What is consolidation and what motivates it?

All of the following are drivers for the low-cost strategic position except ________.

Marginal cost is the mean cost of total production during a given period.

The company that has the lowest operating costs of the major airlines is ________.

Why is market analysis critical to successful pursuit of the differentiation strategy?

By creating a sustainable cost gap over rivals, firms earn above industry-average profits.

During the ________ stage of the industry life cycle, products become more familiar and product information is more widely available.

Why can't United and Delta Airlines lower their costs to match those of Southwest?

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

What is willingness to pay and how does it impact strategic positioning?

The generic strategy typology has managers start by identifying the intended ________ of their strategy.

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

Firms operating above the minimum efficient scale (MES) have a cost advantage.

How does IKEA successfully pursue the integrated position?

The elements of a firm's strategy diamond must be internally consistent, but it is not necessary for them to be aligned with the firm's strategic position.

Heavy reliance on branding enables McDonald's to position itself as a reliable, high-quality provider of low-cost fast food. If McDonald's achieves a(n) ________ position, it will be able to command higher prices than its competitors.

What is the differentiation approach?

A frequent flyer program is an example of a barrier to customer mobility.

In labor-intensive industries, the most serious threat faced by low-cost competitors is ________.

Large-scale operations lead to greater flexibility and reduced costs.

During the initial stages of finding a position that works for a firm, strategists decide if they will compete based on the logic of being a low-cost leader or as a ________.

What is consolidation and what motivates it?

All of the following are drivers for the low-cost strategic position except ________.

Marginal cost is the mean cost of total production during a given period.

The company that has the lowest operating costs of the major airlines is ________.

Why is market analysis critical to successful pursuit of the differentiation strategy?

By creating a sustainable cost gap over rivals, firms earn above industry-average profits.

During the ________ stage of the industry life cycle, products become more familiar and product information is more widely available.

Why can't United and Delta Airlines lower their costs to match those of Southwest?

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