Question 1

Explain the five-step process used to test the quality of a firm's strategy.

Accepted Answer

1. Does your strategy exploit your key r

Question 2

What are the two actions that firms pursuing the differentiation strategy may take?

Accepted Answer

Successful differentiation enables firms

Question 3

Toyota pursues a low-cost leadership strategic position.

Accepted Answer

A) True 
 B)False

Question 4

Why is it important for managers to understand the relationship between experience and costs in a firm's use of technology?

Accepted Answer

It is important to understand the relati

Question 5

Differentiation strategists work to create a common brand image.

Accepted Answer

A) True 
 B)False

Question 6

The industry life cycle influences the strategies of firms that compete in them.

Accepted Answer

A) True 
 B)False

Question 7

The generic strategy typology is helpful in selecting a starting strategic position.

Accepted Answer

A) True 
 B)False

Question 8

During the ________ stage of the industry life cycle, competition is marked by mergers and acquisitions.

Accepted Answer

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

Question 9

Stouffers combines its reputation for high-quality ingredients, innovative menus, and technological advances with all but which of the following to enjoy success as a broad differentiator?

Accepted Answer

A)  high-quality packaging 
B)  lowest cost per meal 
C)  use of food brokers to get broad distribution 
D)  advertising that creates the perception of quality 
A)  high-quality packaging 
B)  lowest cost per meal 
C)  use of food brokers to get broad distribution 
D)  advertising that creates the perception of quality

Question 10

All of the following are phases in the industry life cycle except ________.

Accepted Answer

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

Question 11

A firm with a competitive advantage based on differentiation markets unique products for which customers are willing to pay a premium price. The attributes of the products are discernibly higher than competitors' and include all but which of the following?

Accepted Answer

A)  availability 
B)  quality 
C)  reliability 
D)  prestige 
A)  availability 
B)  quality 
C)  reliability 
D)  prestige

Question 12

The output level that delivers the lowest possible costs is the ________.

Accepted Answer

A)  minimum efficient scale 
B)  average production level 
C)  marginal cost scale 
D)  median cost level 
A)  minimum efficient scale 
B)  average production level 
C)  marginal cost scale 
D)  median cost level

Question 13

Differentiating on a feature that buyers don't care about increases costs without increasing willingness to pay.

Accepted Answer

A) True 
 B)False

Question 14

Pacific Cycle has achieved huge success by combining an aggressive acquisition of power brands with all except which of the following?

Accepted Answer

A)  multinational marketing campaigns 
B)  low-cost outsourcing 
C)  efficient supply-chain management 
D)  multichannel retail distribution 
A)  multinational marketing campaigns 
B)  low-cost outsourcing 
C)  efficient supply-chain management 
D)  multichannel retail distribution

Question 15

Define low-cost leadership.

Accepted Answer

Low-cost leadership is a strategic posit

Question 16

Pacific Cycle markets a product for virtually every market segment, offers a range of quality in its product mix, and keeps costs down by ________.

Accepted Answer

A)  eliminating middle management in the firm 
B)  using American labor from a low-wage state 
C)  outsourcing all of its production to Asia 
D)  taking orders for sample merchandise 
A)  eliminating middle management in the firm 
B)  using American labor from a low-wage state 
C)  outsourcing all of its production to Asia 
D)  taking orders for sample merchandise

Question 17

A successful attempt to integrate low-cost and differentiation positions is called straddling.

Accepted Answer

A) True 
 B)False

Question 18

Business strategy refers to the choices that a firm makes about its competitive posture.

Accepted Answer

A) True 
 B)False

Question 19

How does Pacific Cycle compete in the bicycle industry?

Accepted Answer

Pacific Cycle positions itself different

Question 20

When a firm competes as a differentiator, it becomes a competitor that hopes to achieve ________.

Accepted Answer

A)  higher margins due to a lower cost basis than rivals 
B)  higher prices and margins because of superior quality 
C)  lower prices and margins because of average quality 
D)  lower margins due to a higher cost basis than rivals 
A)  higher margins due to a lower cost basis than rivals 
B)  higher prices and margins because of superior quality 
C)  lower prices and margins because of average quality 
D)  lower margins due to a higher cost basis than rivals

Explain the five-step process used to test the quality of a firm's strategy.

What are the two actions that firms pursuing the differentiation strategy may take?

Toyota pursues a low-cost leadership strategic position.

Why is it important for managers to understand the relationship between experience and costs in a firm's use of technology?

Differentiation strategists work to create a common brand image.

The industry life cycle influences the strategies of firms that compete in them.

The generic strategy typology is helpful in selecting a starting strategic position.

During the ________ stage of the industry life cycle, competition is marked by mergers and acquisitions.

Stouffers combines its reputation for high-quality ingredients, innovative menus, and technological advances with all but which of the following to enjoy success as a broad differentiator?

All of the following are phases in the industry life cycle except ________.

A firm with a competitive advantage based on differentiation markets unique products for which customers are willing to pay a premium price. The attributes of the products are discernibly higher than competitors' and include all but which of the following?

The output level that delivers the lowest possible costs is the ________.

Differentiating on a feature that buyers don't care about increases costs without increasing willingness to pay.

Pacific Cycle has achieved huge success by combining an aggressive acquisition of power brands with all except which of the following?

Define low-cost leadership.

Pacific Cycle markets a product for virtually every market segment, offers a range of quality in its product mix, and keeps costs down by ________.

A successful attempt to integrate low-cost and differentiation positions is called straddling.

Business strategy refers to the choices that a firm makes about its competitive posture.

How does Pacific Cycle compete in the bicycle industry?

When a firm competes as a differentiator, it becomes a competitor that hopes to achieve ________.

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

Explain the five-step process used to test the quality of a firm's strategy.

What are the two actions that firms pursuing the differentiation strategy may take?

Toyota pursues a low-cost leadership strategic position.

Why is it important for managers to understand the relationship between experience and costs in a firm's use of technology?

Differentiation strategists work to create a common brand image.

The industry life cycle influences the strategies of firms that compete in them.

The generic strategy typology is helpful in selecting a starting strategic position.

During the ________ stage of the industry life cycle, competition is marked by mergers and acquisitions.

Stouffers combines its reputation for high-quality ingredients, innovative menus, and technological advances with all but which of the following to enjoy success as a broad differentiator?

All of the following are phases in the industry life cycle except ________.

A firm with a competitive advantage based on differentiation markets unique products for which customers are willing to pay a premium price. The attributes of the products are discernibly higher than competitors' and include all but which of the following?

The output level that delivers the lowest possible costs is the ________.

Differentiating on a feature that buyers don't care about increases costs without increasing willingness to pay.

Pacific Cycle has achieved huge success by combining an aggressive acquisition of power brands with all except which of the following?

Define low-cost leadership.

Pacific Cycle markets a product for virtually every market segment, offers a range of quality in its product mix, and keeps costs down by ________.

A successful attempt to integrate low-cost and differentiation positions is called straddling.

Business strategy refers to the choices that a firm makes about its competitive posture.

How does Pacific Cycle compete in the bicycle industry?

When a firm competes as a differentiator, it becomes a competitor that hopes to achieve ________.

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