Question 1

Differentiation allows a company to:

Accepted Answer

A)  respond to demands of deep price demands from powerful buyers and still make money. 
B)  lower its cost structure. 
C)  charge a premium price for its good or service. 
D)  charge low prices and still make profits. 
E)  initiate a price war in order to grow volume and drive its weaker rivals out of the industry. 
A)  respond to demands of deep price demands from powerful buyers and still make money. 
B)  lower its cost structure. 
C)  charge a premium price for its good or service. 
D)  charge low prices and still make profits. 
E)  initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

Question 2

List the features that need to be included in functional strategies to improve differentiation.

Accepted Answer

A firm that implements the differentiati

Question 3

Differentiation leads to high brand loyalty, which in turn significantly increases the threat of new firms entering the industry.

Accepted Answer

A) True 
 B)False

Question 4

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

Accepted Answer

A) True 
 B)False

Question 5

Describe how business-level strategies give a company a competitive advantage over actual and potential rivals.

Accepted Answer

Properly executed, a well-chosen and wel

Question 6

Companies that follow a standardization strategy ignore the many different market segments in an industry and position their products to appeal to the average customer.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following allows a company to lower cost through functional strategy and organization?

Accepted Answer

A)  Implementing just-in-time inventory control systems 
B)  Customizing the product offering and marketing mix to different market segments 
C)  Focusing marketing efforts on brand building and perceived differentiation from rivals 
D)  Designing strategies to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world 
E)  Adopting rigid manufacturing technologies 
A)  Implementing just-in-time inventory control systems 
B)  Customizing the product offering and marketing mix to different market segments 
C)  Focusing marketing efforts on brand building and perceived differentiation from rivals 
D)  Designing strategies to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world 
E)  Adopting rigid manufacturing technologies

Question 8

Functional strategies to improve differentiation should include:

Accepted Answer

A)  product offerings designed to be can be produced and delivered at as low a cost as possible 
B)  standardization of the product offering and marketing mix to different market segments. 
C)  hiring and employee development strategies designed to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world. 
D)  initiation of a price war in order to grow volume and drive its weaker rivals out of the industry. 
E)  products that have lower prices to allow a company to erect an economic moat around its business that keeps higher-cost rivals out. 
A)  product offerings designed to be can be produced and delivered at as low a cost as possible 
B)  standardization of the product offering and marketing mix to different market segments. 
C)  hiring and employee development strategies designed to ensure that employees act in a manner that is consistent with the image that the company is trying to project to the world. 
D)  initiation of a price war in order to grow volume and drive its weaker rivals out of the industry. 
E)  products that have lower prices to allow a company to erect an economic moat around its business that keeps higher-cost rivals out.

Question 9

A low-cost position is most appropriate when:

Accepted Answer

A)  the power of buyers is low and barriers to entry are high. 
B)  economies of scale are relatively unimportant in manufacturing products. 
C)  customers have very different needs and uses for the industry's products. 
D)  product innovation is the key competitive factor. 
E)  industry rivalry is high and customers are very sensitive to prices. 
A)  the power of buyers is low and barriers to entry are high. 
B)  economies of scale are relatively unimportant in manufacturing products. 
C)  customers have very different needs and uses for the industry's products. 
D)  product innovation is the key competitive factor. 
E)  industry rivalry is high and customers are very sensitive to prices.

Question 10

A focused differentiator has the advantage of:

Accepted Answer

A)  selling on non-price factors, such as design or customer service. 
B)  producing a large product variety without a large cost penalty. 
C)  producing a basic offering that is relatively inexpensive to produce and deliver. 
D)  being able to respond to demands for deep price discounts. 
E)  being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry. 
A)  selling on non-price factors, such as design or customer service. 
B)  producing a large product variety without a large cost penalty. 
C)  producing a basic offering that is relatively inexpensive to produce and deliver. 
D)  being able to respond to demands for deep price discounts. 
E)  being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

Question 11

A differentiated company is protected from intense price rivalry within its industry by its brand loyalty.

Accepted Answer

A) True 
 B)False

Question 12

When a company targets a certain segment or niche, and tries to be the low-cost player in that niche, it is pursuing a broad low-cost strategy.

Accepted Answer

A) True 
 B)False

Question 13

A firm's business model should contain three components: what is to be satisfied, who is to be satisfied, and how they will be satisfied.

Accepted Answer

A) True 
 B)False

Question 14

In which of the following situations is a differentiation strategy used?

Accepted Answer

A)  The industry is fragmented into customer groups based on needs. 
B)  Customer needs are primarily satisfied by the price of the product. 
C)  A company's cost structure needs to be reduced. 
D)  There is a demand for deep price discounts from powerful buyers. 
E)  The industry is not allowed to charge a premium price for its products. 
A)  The industry is fragmented into customer groups based on needs. 
B)  Customer needs are primarily satisfied by the price of the product. 
C)  A company's cost structure needs to be reduced. 
D)  There is a demand for deep price discounts from powerful buyers. 
E)  The industry is not allowed to charge a premium price for its products.

Question 15

A company that follows the _____ strategy customizes its offering to a particular niche in order to outsell its rivals.

Accepted Answer

A)  focused differentiation 
B)  broad low-cost 
C)  market standardization 
D)  rapid growth 
E)  stuck in the middle 
A)  focused differentiation 
B)  broad low-cost 
C)  market standardization 
D)  rapid growth 
E)  stuck in the middle

Question 16

Focus strategy can be defined as:

Accepted Answer

A)  the strategy of merging with an established company in order to gain monopoly over the market. 
B)  the strategy a company uses when it decides to allocate the company resources equally among all the marketing segments 
C)  the strategy a company uses when it decides to serve a limited number of segments, or just one segment of the market. 
D)  the strategy a company uses when it decides to ignore the different needs of different market segments, and produce one standardized product for all the customers. 
E)  the strategy of closing down one or more business units in order to minimize the losses. 
A)  the strategy of merging with an established company in order to gain monopoly over the market. 
B)  the strategy a company uses when it decides to allocate the company resources equally among all the marketing segments 
C)  the strategy a company uses when it decides to serve a limited number of segments, or just one segment of the market. 
D)  the strategy a company uses when it decides to ignore the different needs of different market segments, and produce one standardized product for all the customers. 
E)  the strategy of closing down one or more business units in order to minimize the losses.

Question 17

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

Accepted Answer

A)  redefining their product offering through value innovation and creating a new market space. 
B)  initiating a price war in order to grow volume and drive its weaker rivals out of the industry. 
C)  developing brand loyalty to protect them from intense price rivalry within their industry. 
D)  charging premium prices for their goods or services. 
E)  adopting lean production and flexible manufacturing technologies. 
A)  redefining their product offering through value innovation and creating a new market space. 
B)  initiating a price war in order to grow volume and drive its weaker rivals out of the industry. 
C)  developing brand loyalty to protect them from intense price rivalry within their industry. 
D)  charging premium prices for their goods or services. 
E)  adopting lean production and flexible manufacturing technologies.

Question 18

The brand loyalty enjoyed by the differentiated company will not always protect it from substitute goods and services.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following generic business-level strategies is based on the intent to lower costs so that a company can lower prices and still make a profit?

Accepted Answer

A)  Broad low-cost strategy 
B)  Price differentiation strategy 
C)  Broad differentiation strategy 
D)  Focused differentiation strategy 
E)  Focused low-cost strategy 
A)  Broad low-cost strategy 
B)  Price differentiation strategy 
C)  Broad differentiation strategy 
D)  Focused differentiation strategy 
E)  Focused low-cost strategy

Question 20

Companies that successfully differentiate a product often charge _____ prices for them.

Accepted Answer

A)  premium 
B)  exorbitant 
C)  low 
D)  average 
E)  escalating 
A)  premium 
B)  exorbitant 
C)  low 
D)  average 
E)  escalating

Differentiation allows a company to:

List the features that need to be included in functional strategies to improve differentiation.

Differentiation leads to high brand loyalty, which in turn significantly increases the threat of new firms entering the industry.

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

Describe how business-level strategies give a company a competitive advantage over actual and potential rivals.

Companies that follow a standardization strategy ignore the many different market segments in an industry and position their products to appeal to the average customer.

Which of the following allows a company to lower cost through functional strategy and organization?

Functional strategies to improve differentiation should include:

A low-cost position is most appropriate when:

A focused differentiator has the advantage of:

A differentiated company is protected from intense price rivalry within its industry by its brand loyalty.

When a company targets a certain segment or niche, and tries to be the low-cost player in that niche, it is pursuing a broad low-cost strategy.

A firm's business model should contain three components: what is to be satisfied, who is to be satisfied, and how they will be satisfied.

In which of the following situations is a differentiation strategy used?

A company that follows the _____ strategy customizes its offering to a particular niche in order to outsell its rivals.

Focus strategy can be defined as:

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

The brand loyalty enjoyed by the differentiated company will not always protect it from substitute goods and services.

Which of the following generic business-level strategies is based on the intent to lower costs so that a company can lower prices and still make a profit?

Companies that successfully differentiate a product often charge _____ prices for them.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters

Exam 5: Business-Level Strategy

Differentiation allows a company to:

List the features that need to be included in functional strategies to improve differentiation.

Differentiation leads to high brand loyalty, which in turn significantly increases the threat of new firms entering the industry.

One of the great advantages of successful value innovation is that it can catch rivals off guard and make it difficult for them to catch up.

Describe how business-level strategies give a company a competitive advantage over actual and potential rivals.

Companies that follow a standardization strategy ignore the many different market segments in an industry and position their products to appeal to the average customer.

Which of the following allows a company to lower cost through functional strategy and organization?

Functional strategies to improve differentiation should include:

A low-cost position is most appropriate when:

A focused differentiator has the advantage of:

A differentiated company is protected from intense price rivalry within its industry by its brand loyalty.

When a company targets a certain segment or niche, and tries to be the low-cost player in that niche, it is pursuing a broad low-cost strategy.

A firm's business model should contain three components: what is to be satisfied, who is to be satisfied, and how they will be satisfied.

In which of the following situations is a differentiation strategy used?

A company that follows the _____ strategy customizes its offering to a particular niche in order to outsell its rivals.

Focus strategy can be defined as:

The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by:

The brand loyalty enjoyed by the differentiated company will not always protect it from substitute goods and services.

Which of the following generic business-level strategies is based on the intent to lower costs so that a company can lower prices and still make a profit?

Companies that successfully differentiate a product often charge _____ prices for them.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters