Exam 4: Cost Advantage

In the context of the experience curve, what did early work by the Boston Consulting Group show?

Rinkon Inc., an automobile company, purchased its competitor TrackRoads Inc.that had similar production quantities and a sufficient amount of raw materials.This takeover was done to decrease the unit cost production of Rinkon and to increase its production using more equipment in Rinkon.This strategy led to record profits and more customers investing their finances on cars manufactured by Rinkon.The scenario best illustrates the:

Identify a primary way in which companies achieve cost advantage through lower-cost inputs.

A group of students studying a firm named Sanders & Collins Corp.found that the workers initially learned their task-related activities very fast.In turn, this helped the firm reduce the labor cost incurred in producing each product.However, their rate of learning these tasks reduced over time.This scenario best illustrates the _____.

BizTechno Inc.has always retained competitive advantage over its competitors.The company has offered customer satisfaction for many years by providing the best services and benefits for them.The resources, capabilities, and the organizational structure of the organization have also created an increased edge over its competitors.Which of the following does this scenario best illustrate?

Breaking a large process into smaller elements that require specialized knowledge is known as _____.

Information that is not public and that is viewed as the property of the holder is called _____.

What is meant by diseconomies of scale?

Proprietary knowledge refers to _____.

Techno Inc.is a computer hardware company that gets its computer parts from countries that manufacture them for lesser price than what its competitors pay and at a better quality.This allows Techno to save on the prices paid for the raw materials and use them to increase its production volume.Which of the following is Techno Inc.practicing in order to attain cost advantage?

Which of the following is a feature of task specialization?

Which is an important source of proprietary knowledge?

Ming Gardens Corp., an interior design company, is solely owned by Veronica.The company has been able to achieve competitive advantage due to the knowledge acquired by Veronica over the years.This knowledge was attained under the protective custody of Veronica and she does not want to publish them to anyone.This scenario reflects the development of _____.

MediDose Inc., a pharmaceutical company, has been studying and experimenting with a few drugs.After 10 years of conducting and standardizing tests, the company comes up with positive results that would help many patients.These drugs become popular and effective among millions of patients and enable the company to expand its operations across the globe while spreading out the cost of the studies.Which of the following is the subject of economies of scale in the described scenario?

To a strategist, what does the logic of the experience curve suggest?

Proprietary knowledge refers to _____.

Which of the following statement is true of the learning curve?

Vladimir, the CEO of Autumn Inc., claims that a learning curve is a better option of identifying the growth of the company.His assistant, Mark, states that growth can be better assessed if a scale curve is used as it reflects reliable and validated results and moreover it shows results of a specific time period.Which of the following statements strengthens Vladimir's claim?

Yellow Corp., a supplier that provides raw materials to a leading computer brand, had to lower its costs by 7 percent as the computer brand doubled its order.As a result, Yellow Corp.experienced economies of scale.This negotiation tactic is an example of _____.

Identify a way in which companies can create a new business model to achieve cost advantage.