Question 1

The moves and countermoves of firms and their competitors are _____.

Accepted Answer

A)  generic business strategies 
B)  competitive dynamics 
C)  business level strategy 
D)  low-cost leadership strategy 
E)  differentiation strategy 
A)  generic business strategies 
B)  competitive dynamics 
C)  business level strategy 
D)  low-cost leadership strategy 
E)  differentiation strategy B

Question 2

Discuss the risks associated with pursuing a cost-leadership strategy.

Accepted Answer

a. May not detect required or marketing changes because of a preoccupation with cost
b. Competitors may imitate the technologies that are resulting in lower costs
c. A company may go too far cutting costs and endanger customers or employees

Question 3

In some industries production costs per unit are less in a large facility than in a small facility. This concept is called _____.

Accepted Answer

A)  high capacity utilization 
B)  economies of technology 
C)  outsourcing 
D)  economies of scale 
E)  learning effects 
A)  high capacity utilization 
B)  economies of technology 
C)  outsourcing 
D)  economies of scale 
E)  learning effects D

Question 4

The essence of a best-value strategy is _____.

Accepted Answer

A)  finding a uniqueness that will bring a premium price at a reasonable cost 
B)  emphasizing the creation of extra value 
C)  stressing cost cutting measures 
D)  maximizing high capacity utilization 
E)  targeting a broader market 
A)  finding a uniqueness that will bring a premium price at a reasonable cost 
B)  emphasizing the creation of extra value 
C)  stressing cost cutting measures 
D)  maximizing high capacity utilization 
E)  targeting a broader market

Question 5

The strategy for Etap and Motel 6 can best be described as _____.

Accepted Answer

A)  low-cost leadership strategy 
B)  differentiation 
C)  business level strategy 
D)  best-value strategy 
E)  competitive 
A)  low-cost leadership strategy 
B)  differentiation 
C)  business level strategy 
D)  best-value strategy 
E)  competitive

Question 6

The strategy used to prevent competitors from imitating sources of cost savings or differentiation, is called _____.

Accepted Answer

A)  avoidance strategy 
B)  barriers to entry 
C)  barriers to imitation 
D)  exit barriers 
E)  strategic flexibility 
A)  avoidance strategy 
B)  barriers to entry 
C)  barriers to imitation 
D)  exit barriers 
E)  strategic flexibility

Question 7

The strategy used when firms use every available resource in an effort to overwhelm rivals and reduce the change that countermoves will be successful is _____.

Accepted Answer

A)  first mover advantage 
B)  aggressive strategy 
C)  collaboration strategy 
D)  retaliation strategy 
E)  strategic flexibility 
A)  first mover advantage 
B)  aggressive strategy 
C)  collaboration strategy 
D)  retaliation strategy 
E)  strategic flexibility

Question 8

The term used to describe when one firm contracts with another firm to provide goods or services that were previously supplied from within the company is _____.

Accepted Answer

A)  high capacity utilization 
B)  economies of technology 
C)  outsourcing 
D)  learning effects 
E)  economies of scale 
A)  high capacity utilization 
B)  economies of technology 
C)  outsourcing 
D)  learning effects 
E)  economies of scale

Question 9

_____ is the strategy used when a firm pursues competitive advantage by distinguishing its products or services on the basis of an attribute.

Accepted Answer

A)  low-cost leadership 
B)  focus 
C)  business level strategy 
D)  generic business strategy 
E)  differentiation 
A)  low-cost leadership 
B)  focus 
C)  business level strategy 
D)  generic business strategy 
E)  differentiation

Question 10

The concept that the time required to complete a task will decrease as a predictable function of the number of times the task is repeated demonstrates _____.

Accepted Answer

A)  high capacity utilization 
B)  economies of technology 
C)  outsourcing 
D)  the learning curve 
E)  economies of scale 
A)  high capacity utilization 
B)  economies of technology 
C)  outsourcing 
D)  the learning curve 
E)  economies of scale

Question 11

_____ is used when a firm moves its resources out of declining markets into more prosperous ones in a short amount of time.

Accepted Answer

A)  aggressive strategy 
B)  collaboration strategy 
C)  retaliation strategy 
D)  avoidance strategy 
E)  strategic flexibility 
A)  aggressive strategy 
B)  collaboration strategy 
C)  retaliation strategy 
D)  avoidance strategy 
E)  strategic flexibility

Question 12

If technological improvements result in lower total unit costs then firms have achieved a cost advantage due to _____.

Accepted Answer

A)  high capacity utilization 
B)  economies of technology 
C)  outsourcing 
D)  learning effects 
E)  economies of scale 
A)  high capacity utilization 
B)  economies of technology 
C)  outsourcing 
D)  learning effects 
E)  economies of scale

Question 13

Which term best describes the inevitable decline of leading firms due to competitive moves and countermoves?

Accepted Answer

A)  Competitive advantage 
B)  Generic strategy 
C)  Business level strategy 
D)  Competitive dynamics 
E)  Creative destruction 
A)  Competitive advantage 
B)  Generic strategy 
C)  Business level strategy 
D)  Competitive dynamics 
E)  Creative destruction

Question 14

Firms that stay at the forefront of technological advances in their industries are said to have a(n) _____.

Accepted Answer

A)  aggressive strategy 
B)  first mover advantage 
C)  collaboration strategy 
D)  retaliation strategy 
E)  strategic flexibility 
A)  aggressive strategy 
B)  first mover advantage 
C)  collaboration strategy 
D)  retaliation strategy 
E)  strategic flexibility

Question 15

_____ is used when firms combine resources in an effort to gain a stronger resource position.

Accepted Answer

A)  aggressive strategy 
B)  first mover advantage 
C)  collaboration strategy 
D)  retaliation strategy 
E)  strategic flexibility 
A)  aggressive strategy 
B)  first mover advantage 
C)  collaboration strategy 
D)  retaliation strategy 
E)  strategic flexibility

Question 16

The strategy used when a firm targets a particular market segment is called

Accepted Answer

A)  Low-cost leadership strategy 
B)  Differentiation 
C)  Focus strategy 
D)  Best-value strategy 
E)  Market strategy 
A)  Low-cost leadership strategy 
B)  Differentiation 
C)  Focus strategy 
D)  Best-value strategy 
E)  Market strategy

Question 17

List and discuss factors that firms use to create their low-cost positions:

Accepted Answer

a. Accurate demand forecasting

Question 18

An organization's approach to competing in its chosen markets is _____.

Accepted Answer

A)  generic business strategy 
B)  competitive dynamics 
C)  business level strategy 
D)  low-cost leadership strategy 
E)  differentiation strategy 
A)  generic business strategy 
B)  competitive dynamics 
C)  business level strategy 
D)  low-cost leadership strategy 
E)  differentiation strategy

Question 19

_____ occurs when a firm focuses completely on a particular market niche in which other firms have little interest.

Accepted Answer

A)  aggressive strategy 
B)  collaboration strategy 
C)  retaliation strategy 
D)  avoidance strategy 
E)  strategic flexibility 
A)  aggressive strategy 
B)  collaboration strategy 
C)  retaliation strategy 
D)  avoidance strategy 
E)  strategic flexibility

Question 20

When pursuing differentiation strategies which are more likely to lead to a sustainable advantage?

Accepted Answer

A)  Tangible resources 
B)  Intangible resources 
C)  Firm reputation 
D)  Brand names 
E)  Customer service 
A)  Tangible resources 
B)  Intangible resources 
C)  Firm reputation 
D)  Brand names 
E)  Customer service

The moves and countermoves of firms and their competitors are _____.

Discuss the risks associated with pursuing a cost-leadership strategy.

In some industries production costs per unit are less in a large facility than in a small facility. This concept is called _____.

The essence of a best-value strategy is _____.

The strategy for Etap and Motel 6 can best be described as _____.

The strategy used to prevent competitors from imitating sources of cost savings or differentiation, is called _____.

The strategy used when firms use every available resource in an effort to overwhelm rivals and reduce the change that countermoves will be successful is _____.

The term used to describe when one firm contracts with another firm to provide goods or services that were previously supplied from within the company is _____.

_____ is the strategy used when a firm pursues competitive advantage by distinguishing its products or services on the basis of an attribute.

The concept that the time required to complete a task will decrease as a predictable function of the number of times the task is repeated demonstrates _____.

_____ is used when a firm moves its resources out of declining markets into more prosperous ones in a short amount of time.

If technological improvements result in lower total unit costs then firms have achieved a cost advantage due to _____.

Which term best describes the inevitable decline of leading firms due to competitive moves and countermoves?

Firms that stay at the forefront of technological advances in their industries are said to have a(n) _____.

_____ is used when firms combine resources in an effort to gain a stronger resource position.

The strategy used when a firm targets a particular market segment is called

List and discuss factors that firms use to create their low-cost positions:

An organization's approach to competing in its chosen markets is _____.

_____ occurs when a firm focuses completely on a particular market niche in which other firms have little interest.

When pursuing differentiation strategies which are more likely to lead to a sustainable advantage?

Strategic Management

The Environment and External Stakeholders

Strategic Direction

Organizational Resources and Competitive Advantage

Corporate-Level Strategy and Restructuring

Strategy Implementation Through Interorganizational Relationships and Management of Functional Resources

Strategy Implementation Through Organizational Design and Control

Strategies for Entrepreneurship and Innovation

Global Strategic Management and the Future

Filters

Exam 5: Strategy Formulation at the Business-Unit Level

The moves and countermoves of firms and their competitors are _____.

Discuss the risks associated with pursuing a cost-leadership strategy.

In some industries production costs per unit are less in a large facility than in a small facility. This concept is called _____.

The essence of a best-value strategy is _____.

The strategy for Etap and Motel 6 can best be described as _____.

The strategy used to prevent competitors from imitating sources of cost savings or differentiation, is called _____.

The strategy used when firms use every available resource in an effort to overwhelm rivals and reduce the change that countermoves will be successful is _____.

The term used to describe when one firm contracts with another firm to provide goods or services that were previously supplied from within the company is _____.

_____ is the strategy used when a firm pursues competitive advantage by distinguishing its products or services on the basis of an attribute.

The concept that the time required to complete a task will decrease as a predictable function of the number of times the task is repeated demonstrates _____.

_____ is used when a firm moves its resources out of declining markets into more prosperous ones in a short amount of time.

If technological improvements result in lower total unit costs then firms have achieved a cost advantage due to _____.

Which term best describes the inevitable decline of leading firms due to competitive moves and countermoves?

Firms that stay at the forefront of technological advances in their industries are said to have a(n) _____.

_____ is used when firms combine resources in an effort to gain a stronger resource position.

The strategy used when a firm targets a particular market segment is called

List and discuss factors that firms use to create their low-cost positions:

An organization's approach to competing in its chosen markets is _____.

_____ occurs when a firm focuses completely on a particular market niche in which other firms have little interest.

When pursuing differentiation strategies which are more likely to lead to a sustainable advantage?

Strategic Management

The Environment and External Stakeholders

Strategic Direction

Organizational Resources and Competitive Advantage

Corporate-Level Strategy and Restructuring

Strategy Implementation Through Interorganizational Relationships and Management of Functional Resources

Strategy Implementation Through Organizational Design and Control

Strategies for Entrepreneurship and Innovation

Global Strategic Management and the Future

Filters