Deck 7: Business Unit Strategies

Question 1

Imitation by competitors is generally not a concern for businesses employing the low-cost strategy.

Answer 1

False

Question 2

Businesses adopting the same generic strategy

A)seek the same form of comparative advantage.
B)comprise a strategic group.
C)must be in the same industry.
D)None of the above.

Answer 2

B

Question 3

Scholars agree that low-cost and differentiation strategies can be combined in most cases.

Answer 3

False

Question 4

A strategic group consists of businesses adopting the same generic strategy.

Question 5

Prospectors attempt to capitalize on second mover advantages.

Question 6

The generic strategy defines the uniqueness of the business strategy.

Question 7

Once the generic strategy is selected,

A)the business should generally mimic the strategic behavior of the leading business in its strategic group.
B)the business should develop its functional strategies.
C)the strategy should be fine-tuned to accentuate the organization's unique set of resource strengths.
D)All of the above.

Question 8

A state whereby a firm's successful strategies cannot be easily duplicated by its competitors is known as comparative advantage.

Question 9

Defenders perceive the environment to be stable and certain,seeking stability and control in their operations to achieve maximum efficiency.

Question 10

Low cost leaders depend on capabilities readily available to others in the industry such as access to scarce raw materials,large market share,or a high degree of capitalization.

Question 11

Firms employing the focus-differentiation strategy produce highly differentiated products or services for the specialized needs of a market niche.

Question 12

Businesses adopting different generic strategies

A)may comprise an industry.
B)comprise a strategic group.
C)always compete for different customers.
D)None of the above.

Question 13

According to the notion of "think locally,act globally," a business organization would emphasize the synergy created by serving multiple markets globally,but formulate a distinct competitive strategy for each specific market that is tailored to its unique situation.

Question 14

Large businesses that compete with a low-cost strategy produce basic,no-frills products and services for a mass market comprised of price-sensitive customers.

Question 15

Process innovations are typically presumed to enhance differentiation.

Question 16

Multiple strategies involve the simultaneous execution of two or more different generic strategies,each tailored to the needs of a distinct market or class of customer.

Question 17

Another name for the combination strategy is multiple strategies.

Question 18

According to Porter,

A)Low-cost and differentiation strategies cannot be combined successfully.
B)Low-cost and differentiation strategies can be combined successfully,but not in all cases.
C)Low-cost and differentiation strategies can easily be combined successfully.
D)None of the above.

Question 19

A business employing a focus-low-cost strategy must emphasize product differences appropriate to a market niche.

Question 20

Which of the following is not an option within Porter's generic strategy typology?

A)Low-cost
B)Differentiation
C)Focus-Low-Cost
D)All of the above are options.

Question 21

Compare and contrast Porter's strategy typology with Miles & Snow's typology.

Question 22

Porter's reference to "stuck in the middle" refers to businesses employing

A)both a focus and a differentiation strategy.
B)both a focus and a low cost strategy.
C)both a focus and a low-cost-differentiation strategy.
D)None of the above.

Question 23

Improvements aimed at enhancing differentiation are called

A)process innovations.
B)product innovations.
C)structural innovations.
D)None of the above.

Question 24

Improvements aimed at modifying products,services,and activities in order to maximize the value delivered to customers are called

A)process innovations.
B)structural innovations.
C)product innovations.
D)None of the above.

Question 25

Do larger businesses tend to outperform their mid-size and smaller counterparts? Explain.

Question 26

The strategy associated with second mover advantages is the

A)prospector strategy.
B)defender strategy.
C)analyzer strategy.
D)reactor strategy.

Question 27

Should businesses involved in global markets develop a single strategy for all markets or different strategies for each one? Explain your answer.

Question 28

The strategy associated with first mover advantages is the

A)prospector strategy.
B)defender strategy.
C)analyzer strategy.
D)reactor strategy.

Question 29

Improvements aimed at lowering costs are called

A)process innovations.
B)product innovations.
C)structural innovations.
D)None of the above.

Question 30

Which of the following is not a prospective base for differentiation?

A)product features
B)attention to quality
C)perceived differences in product quality
D)All of the above are prospective bases.

Question 31

Apply Porter's typology to the pizza (restaurant)industry.Identify at least one restaurant in each of four different categories.Explain your rationale.

Question 32

Which is the best competitive approach to global markets?

A)Develop distinct strategies for each market.
B)Maintain a fairly consistent strategy across global markets.
C)Both A&B represent sound approaches.
D)Neither A nor B represents a sound approach.

Question 33

How can low-cost and differentiation strategies be pursued simultaneously?

A)commitment to quality
B)differentiation on low price
C)structural innovations
D)All of the above.

Question 34

Porter's typology and Miles & Snow's typology

A)are alternative approaches to classifying business strategies.
B)are similar in some respects.
C)are different in some respects.
D)All of the above.

Question 35

Discuss the means through which low-cost and differentiation strategies can be combined.

Question 36

Which of the following is typically associated with a focus-low-cost strategy?

A)Price sensitive customers
B)Emphasis on a narrow segment of the market
C)Vulnerability to intense price competition.
D)All of the above.

Question 37

Which of the following is not associated with the focus-differentiation strategy?

A)concentration on a specific market niche
B)relative cost advantages
C)especially vulnerable to businesses employing multiple strategies
D)All of the above are associated with the focus-differentiation strategy.

Question 38

The strategy associated with poor performance is the

A)prospector strategy.
B)defender strategy.
C)analyzer strategy.
D)reactor strategy.

Question 39

Which strategy is most vulnerable to technological obsolescence?

A)Focus-differentiation
B)Differentiation
C)Focus-low-cost
D)Multiple strategies

Question 40

Modifying the structure of the organization and/or the business model to improve competitiveness is consistent with

A)process innovations.
B)product innovations.
C)structural innovations.
D)None of the above.