Exam 5: Creating Business Strategies

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.

When firms make decisions about the arenas in which they will compete, they are determining their ________.

The strategy-diamond and VRINE are not strategy formulation tools.

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

Economic logic influences strategic positioning choices.

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

Frequent-flier programs create switching costs for the buyer.

Product design can sometimes be altered to lower a firm's production costs.

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

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

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

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

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

What is the difference between SBU strategy and business strategy?

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

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

The minimum efficient scale (MES) is the output level that delivers the ________.

What is consolidation and what motivates it?

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

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