Question 1

Flexible manufacturing systems,information networks,and total quality management are three techniques that make it possible for firms to implement the focused differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 2

Discuss how a cost leadership strategy can allow a firm to earn above-average returns in spite of strong competitive forces. Address each of the five competitive forces.

Accepted Answer

The answer of Discuss how a cost leadership strategy can...

Question 3

A flexible manufacturing system is

Accepted Answer

A) based on the use of temporary and part-time employees as well as outsourcing. 
B) a computer-controlled process that is used to produce a variety of products in moderate, flexible quantities with minimal human intervention. 
C) based on a 360-degree view of the company's relationships with customers. 
D) a system that identifies "the one best way" to produce each product in the company's line.

Question 4

Companies without the core competencies in their value chain activities and support functions are still able to implement successfully a either a cost leadership or a differentiation strategy,although they cannot implement an integrated cost leadership/differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 5

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT a value-creating activity associated with the differentiation strategy?

Accepted Answer

A) Developing policies to ensure efficient hiring and retention to keep costs low and implement training to ensure high employee efficiency. 
B) Providing accurate and timely delivery of goods to customers. 
C) Ensuring receipt of high quality supplies (raw materials and other goods). 
D) Developing flexible systems that allow rapid response to customers' changing needs.

Question 7

The benefit of a flexible manufacturing system is that

Accepted Answer

A) the lot size needed to manufacture a firm's product efficiently is reduced. 
B) the necessary skill levels of workers are reduced, allowing the firm to reduce costs. 
C) it lends itself to empowerment of employees. 
D) it captures the cost savings of economies of scale.

Question 8

An English professor spends her summers writing low-brow romance novels that sell directly to paperback. She writes under a fictional name because she is embarrassed to admit to her colleagues and students how she earns the extra money for foreign vacations. The professor is correct in her concern that she is serving customer needs that are objectively inferior and bad.

Accepted Answer

A) True 
 B)False

Question 9

In order to meet and exceed customer's expectations,firms must

Accepted Answer

A) constantly manipulate customers' perceptions of their needs. 
B) answer the questions: who, what, when, where, how, and why as they apply to customers. 
C) continuously improve, innovate, and upgrade their core competencies. 
D) successfully defend their established core competencies from imitation by competitors.

Question 10

Firms implementing cost leadership strategies often sell no-frills standardized goods or services (but with competitive levels of differentiation)to the industry's most typical customers.

Accepted Answer

A) True 
 B)False

Question 11

Ikea offers young customers a selection of home furnishings featuring good design,function,and acceptable quality at low prices. Ikea is using which business-level strategy?

Accepted Answer

A) cost leadership 
B) focused cost leadership 
C) differentiation 
D) focused differentiation

Question 12

A new generation of lunch trucks in cities such as New York,San Francisco,and Los Angeles serving high-end
fare such as hamburgers made from grass­fed cattle,escargot,and crème brulee illustrate the focus cost leadership
strategy.

Accepted Answer

A) True 
 B)False

Question 13

Recently,the only type of car available for Anthony to rent on a business trip was a compact,fuel-efficient Japanese import. Anthony was surprised at the comfort and performance of the car. He is in the market for a new car and had previously considered only buying another luxury SUV. Now,he is thinking about the significant cost savings he would have if he bought the compact vehicle rather than a new SUV. This is an example of the competitive risk that

Accepted Answer

A) a competitor's products can convey a product's differentiated features to a customer at a significantly reduced price. 
B) a product imitation can cause customers to perceive that competitors offer essentially the same good. 
C) experience can narrow a customer's perceptions of the value of a product's differentiated features. 
D) brand loyalty insulates a company from rivalry with competitors.

Question 14

A river barge company can offer cheaper,although slower,per pound transportation of products to companies when compared with transportation by air,truck,or rail. The river barge company should first target customers whose companies use

Accepted Answer

A) the integrated cost leadership/differentiation strategy. 
B) either of the focus strategies. 
C) the cost leadership strategy. 
D) any of the strategies except the focused differentiation strategy.

Question 15

Unlike a cost leadership and a differentiation strategy,both focus strategies are less dependent on the completion of various value chain and support activities in order to compete in a superior manner.

Accepted Answer

A) True 
 B)False

Question 16

The customers.

Accepted Answer

A) loyalty 
B) reach 
C) richness 
D) affiliation dimension of relationships with customers is concerned with the firm's access and connection to

Question 17

All of the following are considered generic business-level strategies EXCEPT

Accepted Answer

A) product diversification. 
B) cost leadership. 
C) focused differentiation. 
D) integrated cost leadership/differentiation.

Question 18

The hazard of getting "stuck in the middle" applies to firms using any business strategy.

Accepted Answer

A) True 
 B)False

Question 19

J.C. Penney attempted the strategy---------. But it couldn't out-------------Walmart,nor could it------------Macy's and

Accepted Answer

A) of integrated cost leadership; price; compete with 
B) of focused differentiation; cost; differentiate between 
C) of cost leadership; cost; differentiate between 
D) of focused cost leadership; price; differentiate between

Question 20

How do focused differentiation and focused cost leadership strategies differ from their non-focused counterparts?

Accepted Answer

The answer of How do focused differentiation and focused cost...

Exam 4: Business-Level Strategy

Flexible manufacturing systems,information networks,and total quality management are three techniques that make it possible for firms to implement the focused differentiation strategy.

Discuss how a cost leadership strategy can allow a firm to earn above-average returns in spite of strong competitive forces. Address each of the five competitive forces.

A flexible manufacturing system is

Companies without the core competencies in their value chain activities and support functions are still able to implement successfully a either a cost leadership or a differentiation strategy,although they cannot implement an integrated cost leadership/differentiation strategy.

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Which of the following is NOT a value-creating activity associated with the differentiation strategy?

The benefit of a flexible manufacturing system is that

In order to meet and exceed customer's expectations,firms must

Firms implementing cost leadership strategies often sell no-frills standardized goods or services (but with competitive levels of differentiation)to the industry's most typical customers.

Ikea offers young customers a selection of home furnishings featuring good design,function,and acceptable quality at low prices. Ikea is using which business-level strategy?

A new generation of lunch trucks in cities such as New York,San Francisco,and Los Angeles serving high-end fare such as hamburgers made from grassfed cattle,escargot,and crème brulee illustrate the focus cost leadership strategy.

A river barge company can offer cheaper,although slower,per pound transportation of products to companies when compared with transportation by air,truck,or rail. The river barge company should first target customers whose companies use

Unlike a cost leadership and a differentiation strategy,both focus strategies are less dependent on the completion of various value chain and support activities in order to compete in a superior manner.

The customers.

All of the following are considered generic business-level strategies EXCEPT

The hazard of getting "stuck in the middle" applies to firms using any business strategy.

J.C. Penney attempted the strategy---------. But it couldn't out-------------Walmart,nor could it------------Macy's and

How do focused differentiation and focused cost leadership strategies differ from their non-focused counterparts?

Exam 4: Business-Level Strategy

Flexible manufacturing systems,information networks,and total quality management are three techniques that make it possible for firms to implement the focused differentiation strategy.

Discuss how a cost leadership strategy can allow a firm to earn above-average returns in spite of strong competitive forces. Address each of the five competitive forces.

A flexible manufacturing system is

Companies without the core competencies in their value chain activities and support functions are still able to implement successfully a either a cost leadership or a differentiation strategy,although they cannot implement an integrated cost leadership/differentiation strategy.

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Which of the following is NOT a value-creating activity associated with the differentiation strategy?

The benefit of a flexible manufacturing system is that

In order to meet and exceed customer's expectations,firms must

Firms implementing cost leadership strategies often sell no-frills standardized goods or services (but with competitive levels of differentiation)to the industry's most typical customers.

Ikea offers young customers a selection of home furnishings featuring good design,function,and acceptable quality at low prices. Ikea is using which business-level strategy?

A new generation of lunch trucks in cities such as New York,San Francisco,and Los Angeles serving high-end fare such as hamburgers made from grass­fed cattle,escargot,and crème brulee illustrate the focus cost leadership strategy.

A river barge company can offer cheaper,although slower,per pound transportation of products to companies when compared with transportation by air,truck,or rail. The river barge company should first target customers whose companies use

Unlike a cost leadership and a differentiation strategy,both focus strategies are less dependent on the completion of various value chain and support activities in order to compete in a superior manner.

The customers.

All of the following are considered generic business-level strategies EXCEPT

The hazard of getting "stuck in the middle" applies to firms using any business strategy.

J.C. Penney attempted the strategy---------. But it couldn't out-------------Walmart,nor could it------------Macy's and

How do focused differentiation and focused cost leadership strategies differ from their non-focused counterparts?

A new generation of lunch trucks in cities such as New York,San Francisco,and Los Angeles serving high-end fare such as hamburgers made from grassfed cattle,escargot,and crème brulee illustrate the focus cost leadership strategy.