Exam 4: Business-Level Strategy

Global competition has increased the options for consumers and has made it more imperative for firms to identify the needs of customers to earn above-average returns.

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 grass-fed cattle, escargot, and crème brulee, at less expensive prices than sit-down restaurants.  This illustrates a focus cost leadership strategy.

As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one of the major aspects of business strategy for the newer networks is ____ than the traditional networks.

Define strategy and business-level strategy. What is the difference between these two concepts?

Mercedes mass produces luxury vehicles at a premium price.  It uses a(n) ______ strategy.

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:

The products or services that are differentiated from others, have qualities that are:

By examining the ____ of Southwest Airlines, one can identify the strategic themes around which it has developed its business strategy. These themes include limited passenger service, high aircraft utilization, and highly productive ground and gate crews.

Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food made from all-natural ingredients and organically raised lamb. This brand has a strong following and is recommended by veterinarians who practice in affluent neighborhoods. Wholesome's main supplier of lamb has announced that the price for lamb will be 15 percent higher next year.  Which one of the following is true?

Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices. To implement the strategy, Zara uses sophisticated designers and effective means of managing costs. These are all characteristics of which business level strategy?

The risks of a focus strategy include:

Walmart's same store sales have been declining and those of rivals Family Dollar and Amazon have been increasing. What could explain this recent change?

The integrated cost leadership/differentiation strategy is superior to the other business-level strategies.

When a firm chooses a business-level strategy, it must answer the questions "Who? What? and How?" What are these questions and why are they important?

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

Every firm uses all levels of strategy: corporate, acquisition and restructuring, international and cooperative.

When implementing a focus strategy, the firm seeks to:

Before the firm decides what products to offer and what benefits and features they will have, the firm must decide all the following questions EXCEPT:

The new generation of lunch trucks serving high-end fare in cities such as New York, San Francisco, and Los Angeles share which of the following a business strategies?

Three sources of flexibility in completing primary and support activities are particularly useful for firms using the integrated strategy. These are: