Exam 5: Creating Business Strategies

What is a learning curve?

The likelihood of a firm achieving its objectives is maximized when its vision strategy and industry conditions are aligned.

Focused differentiation targets unique products to relatively small segments.

All of the following are generic strategies except ________.

Diffused cost leadership is one of Michael Porter's four positions in the field of strategic management.

Conditions at different phases of an industry life cycle provide similar opportunities and constraints.

A firm that competes by achieving higher prices and margins because of superior product quality is called a differentiator.

All of the following are well-known companies pursuing the low-cost leadership strategy except ________.

During the ________ stage of the industry life cycle, there is no standardized technology and uncertainty is high.

Firms that produce differentiated products usually have difficulties managing costs.

Successful strategic positions are based on the effective implementation of the drivers of cost or differentiation.

The smaller the differentiation, the smaller the market segment to which a product will appeal.

During an industry's embryonic phase, capital needs may surpass resources and capabilities.

The generic strategies that derive from the strategic-positioning model help managers reduce the effects of intense rivalry on profitability.

During the ________ stage of the industry life cycle, products begin to resemble commodities.

According to Porter, what are the two key factors affecting the economic logic of competitive advantage?

A successful strategy must be consistent with both a firm's resources and the competitive environment.

A strategy in which elements of one position support a strong standing in the other is called a(n) ________.

Possible threats to the low-cost strategic position include new technology and inferior quality.

Greater scale discourages the use of more sophisticated technology.