Question 1

Religious beliefs are an example of customer segmentation by ______ factors.

Accepted Answer

A)  demographic 
B)  socioeconomic 
C)  geographic 
D)  psychological 
A)  demographic 
B)  socioeconomic 
C)  geographic 
D)  psychological

Question 2

What are the risks of an integrated cost leadership/differentiation strategy?

Accepted Answer

Integrated strategies present risks that

Question 3

Describe the advantages of integrating cost leadership and differentiation strategies.

Accepted Answer

Customers have increasingly high expecta

Question 4

Almost any identifiable human or organizational characteristic can be used to subdivide a market into segments that differ from one another on a given characteristic.

Accepted Answer

A) True 
 B)False

Question 5

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. 
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 6

When selecting a business-level strategy, the firm determines who will be served, what customer needs will be satisfied, and how those needs will be satisfied.

Accepted Answer

A) True 
 B)False

Question 7

The analysis of the activity map of a successful company such as Southwest Airlines emphasizes how:

Accepted Answer

A)  the organizational culture of Southwest Airlines is the key to the success of the organization. 
B)  understanding the profit ability in an industry indicates to companies where above-average returns can be earned. 
C)  it is hard for rivals to match a configuration of integrated activities than to imitate a single activity. 
D)  the primary and support activities of a successful company capture value all along the value chain. 
A)  the organizational culture of Southwest Airlines is the key to the success of the organization. 
B)  understanding the profit ability in an industry indicates to companies where above-average returns can be earned. 
C)  it is hard for rivals to match a configuration of integrated activities than to imitate a single activity. 
D)  the primary and support activities of a successful company capture value all along the value chain.

Question 8

Reach is an especially critical dimension for which firm?

Accepted Answer

A)  Google 
B)  J.C. Penney 
C)  Blockbuster 
D)  Colgate-Palmolive 
A)  Google 
B)  J.C. Penney 
C)  Blockbuster 
D)  Colgate-Palmolive

Question 9

The typical risks of a differentiation strategy do NOT include which of the following?

Accepted Answer

A)  Customers may find the price differential between the low-cost product and the differentiated product too large. 
B)  Customers' experience with other products may narrow customers' perception of the value of a product's differentiated features. 
C)  Counterfeit goods are widely available and acceptable to customers. 
D)  Suppliers of raw materials erode the firm's profit margin with price increases. 
A)  Customers may find the price differential between the low-cost product and the differentiated product too large. 
B)  Customers' experience with other products may narrow customers' perception of the value of a product's differentiated features. 
C)  Counterfeit goods are widely available and acceptable to customers. 
D)  Suppliers of raw materials erode the firm's profit margin with price increases.

Question 10

Research suggests that having a competitive advantage in ____ creates more value in the cost leadership strategy than it does in the differentiation strategy.

Accepted Answer

A)  marketing and sales 
B)  technology development 
C)  logistics 
D)  human resource management 
A)  marketing and sales 
B)  technology development 
C)  logistics 
D)  human resource management

Question 11

An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota, because his spouse's company transferred her to St. Paul. The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste." What is the decorator's problem?

Accepted Answer

A)  The decorator does not understand that customer needs are neither right nor wrong, good nor bad. 
B)  The decorator has no core competencies that will transfer to his new geographic market. 
C)  The decorator should choose a strategy of cost leadership in this environment. 
D)  The decorator is highly affiliated with the new target market and understands how he can create value for it. 
A)  The decorator does not understand that customer needs are neither right nor wrong, good nor bad. 
B)  The decorator has no core competencies that will transfer to his new geographic market. 
C)  The decorator should choose a strategy of cost leadership in this environment. 
D)  The decorator is highly affiliated with the new target market and understands how he can create value for it.

Question 12

The best of the generic business strategies is the integrated cost leadership/differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 13

The typical risks of a cost leadership strategy include:

Accepted Answer

A)  the inability to balance high differentiation and low price. 
B)  production and distribution processes becoming obsolete. 
C)  excessive differentiation to the point where the customer base is too small. 
D)  loss of customer loyalty. 
A)  the inability to balance high differentiation and low price. 
B)  production and distribution processes becoming obsolete. 
C)  excessive differentiation to the point where the customer base is too small. 
D)  loss of customer loyalty.

Question 14

Companies without core competencies in their value chain activities and support functions are still able to successfully implement 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 15

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

1) Rivalry: Having the low cost position

Question 16

A firm using a(n) ______ strategy generally needs to operate "below the radar" of larger and more resource rich firms that serve the broader market.

Accepted Answer

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

Question 17

All of the following describe strategies EXCEPT:

Accepted Answer

A)  they are purposeful. 
B)  they cannibalize the old strategy. 
C)  they precede the taking of actions to which they apply. 
D)  they demonstrate a shared understanding of the firm's vision and mission. 
A)  they are purposeful. 
B)  they cannibalize the old strategy. 
C)  they precede the taking of actions to which they apply. 
D)  they demonstrate a shared understanding of the firm's vision and mission.

Question 18

All of the following are examples of differentiated products EXCEPT:

Accepted Answer

A)  Mont Blanc pens. 
B)  Caterpillar's heavy-duty earth-moving equipment. 
C)  Great Value brand at Walmart. 
D)  Prada fashion. 
A)  Mont Blanc pens. 
B)  Caterpillar's heavy-duty earth-moving equipment. 
C)  Great Value brand at Walmart. 
D)  Prada fashion.

Question 19

The focused differentiation strategy differs from the differentiation strategy in that:

Accepted Answer

A)  the focused differentiators have a broader competitive scope. 
B)  the value-creating activities of focused differentiators are more constrained. 
C)  focused differentiators target a narrower customer market. 
D)  there are fewer risks with the focused differentiation strategy. 
A)  the focused differentiators have a broader competitive scope. 
B)  the value-creating activities of focused differentiators are more constrained. 
C)  focused differentiators target a narrower customer market. 
D)  there are fewer risks with the focused differentiation strategy.

Question 20

Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in:

Accepted Answer

A)  the selection of industries in which the firm will compete. 
B)  specific product markets. 
C)  primary value chain activities. 
D)  particular geographic locations. 
A)  the selection of industries in which the firm will compete. 
B)  specific product markets. 
C)  primary value chain activities. 
D)  particular geographic locations.

Religious beliefs are an example of customer segmentation by ______ factors.

What are the risks of an integrated cost leadership/differentiation strategy?

Describe the advantages of integrating cost leadership and differentiation strategies.

Almost any identifiable human or organizational characteristic can be used to subdivide a market into segments that differ from one another on a given characteristic.

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:

When selecting a business-level strategy, the firm determines who will be served, what customer needs will be satisfied, and how those needs will be satisfied.

The analysis of the activity map of a successful company such as Southwest Airlines emphasizes how:

Reach is an especially critical dimension for which firm?

The typical risks of a differentiation strategy do NOT include which of the following?

Research suggests that having a competitive advantage in ____ creates more value in the cost leadership strategy than it does in the differentiation strategy.

An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota, because his spouse's company transferred her to St. Paul. The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste." What is the decorator's problem?

The best of the generic business strategies is the integrated cost leadership/differentiation strategy.

The typical risks of a cost leadership strategy include:

Companies without core competencies in their value chain activities and support functions are still able to successfully implement either a cost leadership or a differentiation strategy, although they cannot implement an integrated cost leadership/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 firm using a(n) ______ strategy generally needs to operate "below the radar" of larger and more resource rich firms that serve the broader market.

All of the following describe strategies EXCEPT:

All of the following are examples of differentiated products EXCEPT:

The focused differentiation strategy differs from the differentiation strategy in that:

Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in:

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 4: Business-Level Strategy

Religious beliefs are an example of customer segmentation by ______ factors.

What are the risks of an integrated cost leadership/differentiation strategy?

Describe the advantages of integrating cost leadership and differentiation strategies.

Almost any identifiable human or organizational characteristic can be used to subdivide a market into segments that differ from one another on a given characteristic.

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:

When selecting a business-level strategy, the firm determines who will be served, what customer needs will be satisfied, and how those needs will be satisfied.

The analysis of the activity map of a successful company such as Southwest Airlines emphasizes how:

Reach is an especially critical dimension for which firm?

The typical risks of a differentiation strategy do NOT include which of the following?

Research suggests that having a competitive advantage in ____ creates more value in the cost leadership strategy than it does in the differentiation strategy.

An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota, because his spouse's company transferred her to St. Paul. The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste." What is the decorator's problem?

The best of the generic business strategies is the integrated cost leadership/differentiation strategy.

The typical risks of a cost leadership strategy include:

Companies without core competencies in their value chain activities and support functions are still able to successfully implement either a cost leadership or a differentiation strategy, although they cannot implement an integrated cost leadership/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 firm using a(n) ______ strategy generally needs to operate "below the radar" of larger and more resource rich firms that serve the broader market.

All of the following describe strategies EXCEPT:

All of the following are examples of differentiated products EXCEPT:

The focused differentiation strategy differs from the differentiation strategy in that:

Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in:

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters