Question 1

Global logistics firms such as DHL Supply Chain and Global Forwarding or C.H.Robinson Worldwide compete using an overall cost leadership strategy in primary activities such as

Accepted Answer

A)  effective layout of receiving dock operations. 
B)  effective use of automated technology to reduce scrappage rates. 
C)  minimize costs associated with employee turnover through effective policies. 
D)  standardized accounting practices to minimize personnel required.

Question 2

Atlas Door relies on technologies that are rather well known and non-proprietary.This opens it up to the potential of

Accepted Answer

A)  imitation by rivals. 
B)  customer abandonment. 
C)  increased supplier power. 
D)  government regulation.

Question 3

Which of these statements regarding the industry life cycle is true?

Accepted Answer

A)  Partial power of the market life cycle is its ability to serve as a short-run forecasting device. 
B)  Trends suggested by the market life cycle model are generally not reversible or repeatable. 
C)  It points out the need to maintain a differentiation advantage and a low cost advantage. 
D)  It is important for company generic strategies, functional areas, value-creating activities, and overall objectives.

Question 4

A low-cost position permits buyers to exert power to drive ________ prices only to the level of the next most efficient producer.

Accepted Answer

A)  up 
B)  down 
C)  increasing 
D)  decreasing

Question 5

The Yoox algorithm permits it to predict which products will sell at which times and where,thus allowing effective stocking to meet customer needs.This a result of

Accepted Answer

A)  purchasing patterns. 
B)  data analytics. 
C)  physical plant. 
D)  flooding the market with ads.

Question 6

With experience,unit costs of production decline as ________ increases in most industries.

Accepted Answer

A)  costs 
B)  volume 
C)  output 
D)  price

Question 7

Few turnarounds require firms to analyze both the external and internal environments relevant to their firm.

Accepted Answer

A) True 
 B)False

Question 8

Combination strategies,such as integrating overall low cost and differentiation,makes it easier for rivals to duplicate or imitate because it is harder for the primary firm to provide value.

Accepted Answer

A) True 
 B)False

Question 9

An overall low-cost position protects a firm against rivalry from competitors because ________ allow a firm to earn returns even if its competitors eroded their profits through intense rivalry.

Accepted Answer

A)  higher costs 
B)  higher prices 
C)  lower costs 
D)  lower prices

Question 10

Marlin Steel Wire Products is a manufacturer of commodity wire products out of Baltimore,MD.Marlin has many rivals based in China and other emerging markets.The company cannot compete on labor costs so it used a ________ strategy to automate its production and now specializes in high-end products.

Accepted Answer

A)  differentiation 
B)  overall cost leadership 
C)  focus strategy 
D)  low cost leadership

Question 11

The primary aim of strategic management at the business level is

Accepted Answer

A)  maximizing risk to return trade-offs through diversification. 
B)  maximizing differentiation of products and/or services. 
C)  achieving competitive advantage. 
D)  achieving a low-cost position.

Question 12

In a given market,key technology no longer has patent protection,experience is not an advantage,and there is a growing need to compete on price.What stage of its life cycle is the market in?

Accepted Answer

A)  introduction 
B)  growth 
C)  maturity 
D)  decline

Question 13

Once established,competitive advantages last forever whether the firm is in a high technology environment or not.

Accepted Answer

A) True 
 B)False

Question 14

The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle?

Accepted Answer

A)  introduction 
B)  growth 
C)  maturity 
D)  decline

Question 15

Early pioneer in online education,University of Phoenix,has faced increasing challenges from traditional university online programs who are able to offer their programs at the same cost.This is an example of which generic strategy gone wrong:

Accepted Answer

A)  Differentiation. 
B)  Overall cost leadership. 
C)  Focus strategy. 
D)  Low cost leadership.

Question 16

A firm can differentiate itself in a support activity by purchasing high-quality components to enhance product image such as Apple does with its laptop computers.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is most often true of mature markets?

Accepted Answer

A)  Some competitors enjoy a significant operating advantage due to increasing experience effects. 
B)  The market supports premium pricing, which attracts additional competitors. 
C)  Advantages that cannot be duplicated by other competitors are difficult to achieve. 
D)  The magnitude of pricing differences and product differentiation is larger than in the growth stage.

Question 18

A risk for a firm that tries to attain both cost and differentiation advantages is that it can be stuck in the middle.An example of this is supermarkets because their ________ structure is ________ than discount retailers,and customers do not value their products and services as being high-end such as those offered by Whole Foods.

Accepted Answer

A)  cost; higher 
B)  price; higher 
C)  price; lower 
D)  cost; lower

Question 19

Mass customization permits companies to manufacture unique products in relatively ________ quantities at ________ costs.

Accepted Answer

A)  large; higher 
B)  large; lower 
C)  small; higher 
D)  small; lower

Question 20

Rivals would find it difficult to challenge Atlas Door in the short run because of

Accepted Answer

A)  strong customer loyalty. 
B)  low barriers to entry. 
C)  high threat of substitution. 
D)  low buyer switching costs.

Exam 5: Business-level Strategy: Creating and Sustaining Competitive Advantages

Global logistics firms such as DHL Supply Chain and Global Forwarding or C.H.Robinson Worldwide compete using an overall cost leadership strategy in primary activities such as

Atlas Door relies on technologies that are rather well known and non-proprietary.This opens it up to the potential of

Which of these statements regarding the industry life cycle is true?

A low-cost position permits buyers to exert power to drive ________ prices only to the level of the next most efficient producer.

The Yoox algorithm permits it to predict which products will sell at which times and where,thus allowing effective stocking to meet customer needs.This a result of

With experience,unit costs of production decline as ________ increases in most industries.

Few turnarounds require firms to analyze both the external and internal environments relevant to their firm.

Combination strategies,such as integrating overall low cost and differentiation,makes it easier for rivals to duplicate or imitate because it is harder for the primary firm to provide value.

An overall low-cost position protects a firm against rivalry from competitors because ________ allow a firm to earn returns even if its competitors eroded their profits through intense rivalry.

Marlin Steel Wire Products is a manufacturer of commodity wire products out of Baltimore,MD.Marlin has many rivals based in China and other emerging markets.The company cannot compete on labor costs so it used a ________ strategy to automate its production and now specializes in high-end products.

The primary aim of strategic management at the business level is

In a given market,key technology no longer has patent protection,experience is not an advantage,and there is a growing need to compete on price.What stage of its life cycle is the market in?

Once established,competitive advantages last forever whether the firm is in a high technology environment or not.

The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle?

Early pioneer in online education,University of Phoenix,has faced increasing challenges from traditional university online programs who are able to offer their programs at the same cost.This is an example of which generic strategy gone wrong:

A firm can differentiate itself in a support activity by purchasing high-quality components to enhance product image such as Apple does with its laptop computers.

Which of the following is most often true of mature markets?

Mass customization permits companies to manufacture unique products in relatively quantities at costs.

Rivals would find it difficult to challenge Atlas Door in the short run because of