Question 1

The nature of the narrow target market remains constant across firms that use a focused cost leadership strategy.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements holds true for companies following the differentiation strategy?

Accepted Answer

A) They offer generic and standardized products. 
B) They do not invest in the field of market research. 
C) They spend little on research and development. 
D) Advertising in general and brand building in particular are very important to them. 
E) They compete with their rivals on the basis of price. 
A) They offer generic and standardized products. 
B) They do not invest in the field of market research. 
C) They spend little on research and development. 
D) Advertising in general and brand building in particular are very important to them. 
E) They compete with their rivals on the basis of price.

Question 3

Firms that are able to offer both low prices and unique features that customer find desirable are said to be stuck in the middle.

Accepted Answer

A) True 
 B)False

Question 4

A company provides baby sitting services to single working mothers.This is the example of a(n):

Accepted Answer

A) adaptive strategy. 
B) pull strategy. 
C) cost leadership strategy. 
D) focused differentiation strategy. 
E) focused cost leadership strategy. 
A) adaptive strategy. 
B) pull strategy. 
C) cost leadership strategy. 
D) focused differentiation strategy. 
E) focused cost leadership strategy.

Question 5

A sneaker manufacturing company targets teenagers.It sells the sneakers to these teenagers at a price which is lower than what is offered in the market.It also has a website where customers can design their own shoes.They then can order the shoes and they will be delivered to them.This is an example of a (n) _____ strategy.

Accepted Answer

A) generic cost 
B) best-cost 
C) standardized cost 
D) stuck in the middle 
E) marked 
A) generic cost 
B) best-cost 
C) standardized cost 
D) stuck in the middle 
E) marked

Question 6

A company sells computers only over the internet.Customers can decide their own computer configuration at the company's website and then place the order for the computer.This is an example of:

Accepted Answer

A) focused differentiation strategy. 
B) focused cost leadership strategy. 
C) cost leadership strategy. 
D) pull strategy. 
E) adaptive strategy. 
A) focused differentiation strategy. 
B) focused cost leadership strategy. 
C) cost leadership strategy. 
D) pull strategy. 
E) adaptive strategy.

Question 7

In many cases, firms become stuck in the middle because firms are simply outmaneuvered by their rivals.

Accepted Answer

A) True 
 B)False

Question 8

A real estate company provides housing services to retired individuals.It basically helps individuals above the age of sixty to search for houses with peaceful surroundings.The fact that the company provides housing services to retired individuals is an example of a(n):

Accepted Answer

A) adaptive strategy. 
B) pull strategy. 
C) focused cost leadership strategy. 
D) cost leadership strategy. 
E) focused differentiation strategy. 
A) adaptive strategy. 
B) pull strategy. 
C) focused cost leadership strategy. 
D) cost leadership strategy. 
E) focused differentiation strategy.

Question 9

Mekcin is a company that regularly launches products with features that are different from what are offered in the market.It has now launched a new electronic device which can be fitted to vehicles.It can be programmed to automatically dial the police emergency number, provide them with all the required location details, and guide them to the location, in the case of an emergency.It also charges higher for its products than what other companies charge for their products.What disadvantage would the company face because of the strategy it follows?

Accepted Answer

A) The firm needs to attract huge numbers of customers in order to have a good overall level of profit. 
B) This company lacks an ability to obtain premium prices from customers. 
C) This differentiation strategy allows the entrance of new companies in the market. 
D) This strategy lacks the capacity to generate buyer loyalty. 
E) Competitors may be able to imitate the features well enough that they are no longer unique. 
A) The firm needs to attract huge numbers of customers in order to have a good overall level of profit. 
B) This company lacks an ability to obtain premium prices from customers. 
C) This differentiation strategy allows the entrance of new companies in the market. 
D) This strategy lacks the capacity to generate buyer loyalty. 
E) Competitors may be able to imitate the features well enough that they are no longer unique.

Question 10

Firms that are not able to offer low prices or appealing unique features are said to be following the best-cost strategy.

Accepted Answer

A) True 
 B)False

Question 11

A company that sells dairy products purchases large quantities of milk from the local dairy farms.Since the quantity purchased is very high, the company is able to demand and get price concessions from the dairy farms.The company prices its dairy products at a lower rate than its competitors.The greater quantity of products sold compensates for the low price.This is an example of:

Accepted Answer

A) economies of scale. 
B) economies of supply. 
C) economies of demand. 
D) economies of distribution. 
E) economies of cost. 
A) economies of scale. 
B) economies of supply. 
C) economies of demand. 
D) economies of distribution. 
E) economies of cost.

Question 12

A differentiation strategy also creates benefits relative to potential new entrants.

Accepted Answer

A) True 
 B)False

Question 13

The need for efficiency means that cost leaders' profit margins are often higher than the margins enjoyed by other firms.

Accepted Answer

A) True 
 B)False

Question 14

Markets that involve a lot of brand loyalty offer great opportunities to cost leaders to attract a large segment of customers.

Accepted Answer

A) True 
 B)False

Question 15

A firm's business-level strategy should involve trying to serve the varied needs of every different segment of customers in an industry.

Accepted Answer

A) True 
 B)False

Question 16

What are the limitations of generic strategies?

Accepted Answer

It is important to recognize that examin

Question 17

A(n) _____ is a general way of positioning a firm within an industry.

Accepted Answer

A) micro-strategy 
B) standard strategy 
C) established strategy 
D) generic strategy 
E) marked strategy 
A) micro-strategy 
B) standard strategy 
C) established strategy 
D) generic strategy 
E) marked strategy

Question 18

A real estate company provides housing services to retired individuals.It basically helps individuals above the age of sixty to search for houses with peaceful surroundings.Which of the following statements holds true for the real estate company?

Accepted Answer

A) It depends on its ability to reduce the price to drive competition out of the market. 
B) It does not face damaging attacks from larger firms. 
C) It growth is never stymied irrespective of the fact that it serves a niche market. 
D) Its area of operation cannot be made to disappear or be taken over by larger competitors. 
E) It can charge very high prices. 
A) It depends on its ability to reduce the price to drive competition out of the market. 
B) It does not face damaging attacks from larger firms. 
C) It growth is never stymied irrespective of the fact that it serves a niche market. 
D) Its area of operation cannot be made to disappear or be taken over by larger competitors. 
E) It can charge very high prices.

Question 19

In the case of focus differentiation, a company lacks the ability to charge high prices.

Accepted Answer

A) True 
 B)False

Question 20

A firm may not match every characteristic that its generic strategy entails.

Accepted Answer

A) True 
 B)False

The nature of the narrow target market remains constant across firms that use a focused cost leadership strategy.

Which of the following statements holds true for companies following the differentiation strategy?

Firms that are able to offer both low prices and unique features that customer find desirable are said to be stuck in the middle.

A company provides baby sitting services to single working mothers.This is the example of a(n):

A company sells computers only over the internet.Customers can decide their own computer configuration at the company's website and then place the order for the computer.This is an example of:

In many cases, firms become stuck in the middle because firms are simply outmaneuvered by their rivals.

A real estate company provides housing services to retired individuals.It basically helps individuals above the age of sixty to search for houses with peaceful surroundings.The fact that the company provides housing services to retired individuals is an example of a(n):

Firms that are not able to offer low prices or appealing unique features are said to be following the best-cost strategy.

A differentiation strategy also creates benefits relative to potential new entrants.

The need for efficiency means that cost leaders' profit margins are often higher than the margins enjoyed by other firms.

Markets that involve a lot of brand loyalty offer great opportunities to cost leaders to attract a large segment of customers.

A firm's business-level strategy should involve trying to serve the varied needs of every different segment of customers in an industry.

What are the limitations of generic strategies?

A(n) _____ is a general way of positioning a firm within an industry.

A real estate company provides housing services to retired individuals.It basically helps individuals above the age of sixty to search for houses with peaceful surroundings.Which of the following statements holds true for the real estate company?

In the case of focus differentiation, a company lacks the ability to charge high prices.

A firm may not match every characteristic that its generic strategy entails.

Mastering Strategy: Art and Science

Leading Strategically

Evaluating the External Environment

Managing Company Resources

Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Competing in International Markets

Selecting Corporate-Level Strategies

Executing Strategy Through Organizational Design

Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility

Filters

Exam 5: Selecting Business-Level Strategies

The nature of the narrow target market remains constant across firms that use a focused cost leadership strategy.

Which of the following statements holds true for companies following the differentiation strategy?

Firms that are able to offer both low prices and unique features that customer find desirable are said to be stuck in the middle.

A company provides baby sitting services to single working mothers.This is the example of a(n):

A company sells computers only over the internet.Customers can decide their own computer configuration at the company's website and then place the order for the computer.This is an example of:

In many cases, firms become stuck in the middle because firms are simply outmaneuvered by their rivals.

A real estate company provides housing services to retired individuals.It basically helps individuals above the age of sixty to search for houses with peaceful surroundings.The fact that the company provides housing services to retired individuals is an example of a(n):

Firms that are not able to offer low prices or appealing unique features are said to be following the best-cost strategy.

A differentiation strategy also creates benefits relative to potential new entrants.

The need for efficiency means that cost leaders' profit margins are often higher than the margins enjoyed by other firms.

Markets that involve a lot of brand loyalty offer great opportunities to cost leaders to attract a large segment of customers.

A firm's business-level strategy should involve trying to serve the varied needs of every different segment of customers in an industry.

What are the limitations of generic strategies?

A(n) _____ is a general way of positioning a firm within an industry.

A real estate company provides housing services to retired individuals.It basically helps individuals above the age of sixty to search for houses with peaceful surroundings.Which of the following statements holds true for the real estate company?

In the case of focus differentiation, a company lacks the ability to charge high prices.

A firm may not match every characteristic that its generic strategy entails.

Mastering Strategy: Art and Science

Leading Strategically

Evaluating the External Environment

Managing Company Resources

Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Competing in International Markets

Selecting Corporate-Level Strategies

Executing Strategy Through Organizational Design

Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility

Filters