Question 1

Low-cost leaders must offer an acceptable combination of price and quality.

Accepted Answer

A) True 
 B)False

Question 2

Successful differentiation strategists must ________.

Accepted Answer

A)  keep costs low 
B)  lower quality 
C)  identify buyers who have unique needs 
D)  blend their product offerings with those of competitors 
A)  keep costs low 
B)  lower quality 
C)  identify buyers who have unique needs 
D)  blend their product offerings with those of competitors

Question 3

Strategic positioning is a useful starting point in dealing with issues derived from the industrial economic model.

Accepted Answer

A) True 
 B)False

Question 4

What are some possible threats to the differentiation position?

Accepted Answer

Needless to say, the intent to provide a

Question 5

Identifying specific subgroups of buyers who have distinguishable needs is called ________.

Accepted Answer

A)  market segmentation 
B)  product analysis 
C)  buyer division 
D)  market design 
A)  market segmentation 
B)  product analysis 
C)  buyer division 
D)  market design

Question 6

Why is the minimum efficient scale critical to strategic decisions?

Accepted Answer

The minimum efficient scale is critical

Question 7

Michael Porter's generic strategies are known as strategic positions, which are ________ of several elements of a firm's strategy.

Accepted Answer

A)  configurations 
B)  highlights 
C)  descriptions 
D)  lists 
A)  configurations 
B)  highlights 
C)  descriptions 
D)  lists

Question 8

________ strategic positions require manufacturing resources and capabilities that are likely to contribute to a cost advantage.

Accepted Answer

A)  Low-cost 
B)  Differentiation 
C)  Mixed 
D)  Focus 
A)  Low-cost 
B)  Differentiation 
C)  Mixed 
D)  Focus

Question 9

Economic logic influences strategic positioning choices.

Accepted Answer

A) True 
 B)False

Question 10

The levers that are necessary for implementing a firm's strategy include all but having ________.

Accepted Answer

A)  appropriate systems and processes 
B)  sufficient managerial resources 
C)  five- and ten-year business forecasts 
D)  incentives that are congruent with objectives 
A)  appropriate systems and processes 
B)  sufficient managerial resources 
C)  five- and ten-year business forecasts 
D)  incentives that are congruent with objectives

Question 11

Focus strategies are influenced by unique economic drivers.

Accepted Answer

A) True 
 B)False

Question 12

Discuss some of the various types of production costs.

Accepted Answer

To better understand the nature and impo

Question 13

A grave danger to a firm's current relationship with customers appears if ________.

Accepted Answer

A)  new customer service training is implemented 
B)  competitors can imitate its differentiators 
C)  its products align too closely with the industry leader's products 
D)  there is a perceptible change in quality 
A)  new customer service training is implemented 
B)  competitors can imitate its differentiators 
C)  its products align too closely with the industry leader's products 
D)  there is a perceptible change in quality

Question 14

A firm with innovative capabilities will generally favor the use of low-cost leader strategy.

Accepted Answer

A) True 
 B)False

Question 15

During the industry's maturity phase, companies will choose the global or diversified arena.

Accepted Answer

A) True 
 B)False

Question 16

As industries mature, there are fewer competitors and greater pressure for cost savings.

Accepted Answer

A) True 
 B)False

Question 17

A strategic position that enables a firm to be a low-cost leader in a narrow segment of the market is known as ________.

Accepted Answer

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

Question 18

Michael Porter's model is based on the principles of industrial organization economics.

Accepted Answer

A) True 
 B)False

Question 19

According to Porter, if a company is targeting a broad strategic market, it must choose either ________ or ________.

Accepted Answer

A)  low-cost leadership; differentiation 
B)  focused low-cost leadership; differentiation 
C)  focused differentiation; focused low-cost leadership 
D)  low-cost leadership; economic logic 
A)  low-cost leadership; differentiation 
B)  focused low-cost leadership; differentiation 
C)  focused differentiation; focused low-cost leadership 
D)  low-cost leadership; economic logic

Question 20

The intent to offer a differentiated product generally results in competitive advantage and above-average profitability.

Accepted Answer

A) True 
 B)False

Low-cost leaders must offer an acceptable combination of price and quality.

Successful differentiation strategists must ________.

Strategic positioning is a useful starting point in dealing with issues derived from the industrial economic model.

What are some possible threats to the differentiation position?

Identifying specific subgroups of buyers who have distinguishable needs is called ________.

Why is the minimum efficient scale critical to strategic decisions?

Michael Porter's generic strategies are known as strategic positions, which are ________ of several elements of a firm's strategy.

________ strategic positions require manufacturing resources and capabilities that are likely to contribute to a cost advantage.

Economic logic influences strategic positioning choices.

The levers that are necessary for implementing a firm's strategy include all but having ________.

Focus strategies are influenced by unique economic drivers.

Discuss some of the various types of production costs.

A grave danger to a firm's current relationship with customers appears if ________.

A firm with innovative capabilities will generally favor the use of low-cost leader strategy.

During the industry's maturity phase, companies will choose the global or diversified arena.

As industries mature, there are fewer competitors and greater pressure for cost savings.

A strategic position that enables a firm to be a low-cost leader in a narrow segment of the market is known as ________.

Michael Porter's model is based on the principles of industrial organization economics.

According to Porter, if a company is targeting a broad strategic market, it must choose either or .

The intent to offer a differentiated product generally results in competitive advantage and above-average profitability.

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

Low-cost leaders must offer an acceptable combination of price and quality.

Successful differentiation strategists must ________.

Strategic positioning is a useful starting point in dealing with issues derived from the industrial economic model.

What are some possible threats to the differentiation position?

Identifying specific subgroups of buyers who have distinguishable needs is called ________.

Why is the minimum efficient scale critical to strategic decisions?

Michael Porter's generic strategies are known as strategic positions, which are ________ of several elements of a firm's strategy.

________ strategic positions require manufacturing resources and capabilities that are likely to contribute to a cost advantage.

Economic logic influences strategic positioning choices.

The levers that are necessary for implementing a firm's strategy include all but having ________.

Focus strategies are influenced by unique economic drivers.

Discuss some of the various types of production costs.

A grave danger to a firm's current relationship with customers appears if ________.

A firm with innovative capabilities will generally favor the use of low-cost leader strategy.

During the industry's maturity phase, companies will choose the global or diversified arena.

As industries mature, there are fewer competitors and greater pressure for cost savings.

A strategic position that enables a firm to be a low-cost leader in a narrow segment of the market is known as ________.

Michael Porter's model is based on the principles of industrial organization economics.

According to Porter, if a company is targeting a broad strategic market, it must choose either ________ or ________.

The intent to offer a differentiated product generally results in competitive advantage and above-average profitability.

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

According to Porter, if a company is targeting a broad strategic market, it must choose either or .