Question 1

Firms that have been able to integrate low-cost and differentiation positions can be found ________.

Accepted Answer

A)  in most industries 
B)  in only a very few industries 
C)  only on the East Coast 
D)  only on the West Coast 
A)  in most industries 
B)  in only a very few industries 
C)  only on the East Coast 
D)  only on the West Coast

Question 2

The focus position usually involves eliminating some services or features in order to drive costs down.

Accepted Answer

A) True 
 B)False

Question 3

A firm's choice of position depends on two important factors, which are ________.

Accepted Answer

A)  low cost and differentiation 
B)  resources and industry structure 
C)  structure and strategy 
D)  differentiators and arenas 
A)  low cost and differentiation 
B)  resources and industry structure 
C)  structure and strategy 
D)  differentiators and arenas

Question 4

In 1980, Michael Porter introduced an integrated theory of strategy, which considered the structure of an industry and its effect on the ________.

Accepted Answer

A)  future customer base of the industry 
B)  environment 
C)  population it currently serves 
D)  performance of firms within it 
A)  future customer base of the industry 
B)  environment 
C)  population it currently serves 
D)  performance of firms within it

Question 5

All of the following are reasons why firms have different production costs except ________.

Accepted Answer

A)  economies of scale 
B)  learning 
C)  product design 
D)  scope of involvement 
A)  economies of scale 
B)  learning 
C)  product design 
D)  scope of involvement

Question 6

The goal of low-cost approach is to reduce costs significantly so that you drive up the customers' willingness to pay.

Accepted Answer

A) True 
 B)False

Question 7

If a firm's strategy can be implemented, then it must be aligned with the appropriate implementation levers.

Accepted Answer

A) True 
 B)False

Question 8

A strategic position that enables a firm to produce a good while maintaining total costs that are lower than its competitors is called ________.

Accepted Answer

A)  differentiation 
B)  efficiency 
C)  low-cost leadership 
D)  focus 
A)  differentiation 
B)  efficiency 
C)  low-cost leadership 
D)  focus

Question 9

During the ________ stage of the industry life cycle, many firms consider the strategy of exiting the industry.

Accepted Answer

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

Question 10

Fixed costs are the costs of ________.

Accepted Answer

A)  raw materials and labor 
B)  the last 100 units of production 
C)  rent and equipment 
D)  all expenses incurred by the firm 
A)  raw materials and labor 
B)  the last 100 units of production 
C)  rent and equipment 
D)  all expenses incurred by the firm

Question 11

Increased size ensures economies of scale.

Accepted Answer

A) True 
 B)False

Question 12

Two firms of the same size may have significantly different operating costs because one has progressed farther down the learning curve.

Accepted Answer

A) True 
 B)False

Question 13

When managers decide on generic competitive positions, they are actually deciding on strategies themselves.

Accepted Answer

A) True 
 B)False

Question 14

All of the following are drivers for the differentiation strategic position except ________.

Accepted Answer

A)  premium brand image 
B)  economies of scope 
C)  unique styling 
D)  convenient access 
A)  premium brand image 
B)  economies of scope 
C)  unique styling 
D)  convenient access

Question 15

It is not always necessary to determine whether a firm's strategy aligns with the key success factors favored by the competitive environment.

Accepted Answer

A) True 
 B)False

Question 16

Economies of scale result from a variety of efficiencies including all of the following except ________.

Accepted Answer

A)  superior inventory management 
B)  exercising purchasing power 
C)  spending less on advertising or R&D 
D)  specializing in a specific production process 
A)  superior inventory management 
B)  exercising purchasing power 
C)  spending less on advertising or R&D 
D)  specializing in a specific production process

Question 17

A real threat to an intended low-cost position is the failure to offer an acceptable combination of price and ________.

Accepted Answer

A)  expertise 
B)  quality 
C)  advertising 
D)  technology 
A)  expertise 
B)  quality 
C)  advertising 
D)  technology

Question 18

Explain the four stages of the industry life cycle.

Accepted Answer

The four stages of the industry life cyc

Question 19

If a firm wants to exploit opportunities while withstanding competitive pressures, its strategy must be built on its bureaucracy and structure.

Accepted Answer

A) True 
 B)False

Question 20

What is a strategic business unit?

Accepted Answer

A strategic business unit or S

Firms that have been able to integrate low-cost and differentiation positions can be found ________.

The focus position usually involves eliminating some services or features in order to drive costs down.

A firm's choice of position depends on two important factors, which are ________.

In 1980, Michael Porter introduced an integrated theory of strategy, which considered the structure of an industry and its effect on the ________.

All of the following are reasons why firms have different production costs except ________.

The goal of low-cost approach is to reduce costs significantly so that you drive up the customers' willingness to pay.

If a firm's strategy can be implemented, then it must be aligned with the appropriate implementation levers.

A strategic position that enables a firm to produce a good while maintaining total costs that are lower than its competitors is called ________.

During the ________ stage of the industry life cycle, many firms consider the strategy of exiting the industry.

Fixed costs are the costs of ________.

Increased size ensures economies of scale.

Two firms of the same size may have significantly different operating costs because one has progressed farther down the learning curve.

When managers decide on generic competitive positions, they are actually deciding on strategies themselves.

All of the following are drivers for the differentiation strategic position except ________.

It is not always necessary to determine whether a firm's strategy aligns with the key success factors favored by the competitive environment.

Economies of scale result from a variety of efficiencies including all of the following except ________.

A real threat to an intended low-cost position is the failure to offer an acceptable combination of price and ________.

Explain the four stages of the industry life cycle.

If a firm wants to exploit opportunities while withstanding competitive pressures, its strategy must be built on its bureaucracy and structure.

What is a strategic business unit?

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

Firms that have been able to integrate low-cost and differentiation positions can be found ________.

The focus position usually involves eliminating some services or features in order to drive costs down.

A firm's choice of position depends on two important factors, which are ________.

In 1980, Michael Porter introduced an integrated theory of strategy, which considered the structure of an industry and its effect on the ________.

All of the following are reasons why firms have different production costs except ________.

The goal of low-cost approach is to reduce costs significantly so that you drive up the customers' willingness to pay.

If a firm's strategy can be implemented, then it must be aligned with the appropriate implementation levers.

A strategic position that enables a firm to produce a good while maintaining total costs that are lower than its competitors is called ________.

During the ________ stage of the industry life cycle, many firms consider the strategy of exiting the industry.

Fixed costs are the costs of ________.

Increased size ensures economies of scale.

Two firms of the same size may have significantly different operating costs because one has progressed farther down the learning curve.

When managers decide on generic competitive positions, they are actually deciding on strategies themselves.

All of the following are drivers for the differentiation strategic position except ________.

It is not always necessary to determine whether a firm's strategy aligns with the key success factors favored by the competitive environment.

Economies of scale result from a variety of efficiencies including all of the following except ________.

A real threat to an intended low-cost position is the failure to offer an acceptable combination of price and ________.

Explain the four stages of the industry life cycle.

If a firm wants to exploit opportunities while withstanding competitive pressures, its strategy must be built on its bureaucracy and structure.

What is a strategic business unit?

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