Question 1

Which two of the following variables can managers primarily manipulate in order to answer the questions \"how should we compete?  -price -style -cost -size -value

Accepted Answer

cost and value

Question 2

A firm\'s strategic profile based on value creation and cost is called its

Accepted Answer

strategic position

Question 3

A ____ is a situation that requires choosing between a cost or value position

Accepted Answer

strategic trade-off

Question 4

A ____ strategy aims to create higher value for customers by offering products with unique features but a similar level of costs to those of competing products

Accepted Answer

differentiation

Question 5

In a focused differentiation strategy, the competitive scope is ____ than in a traditional differentiation strategy

Accepted Answer

narrower

Question 6

A ____ strategy attempts to create products with unique and attractive features in order to increase the price that consumers are willing to pay

Accepted Answer

differentiation

Question 7

A firm that pursues a differentiation strategy will often find that the added expense of offering new or unique product features offsets the increase in perceived value, and profit margins begin to erode. This underscores the importance of ____ control for firms pursuing a differentiation strategy

Accepted Answer

cost

Question 8

Economies of ___ are the savings that come from producing two or more different outputs at a lower cost than producing each output individually

Accepted Answer

scope

Question 9

Positive adjustments in product features, customer service, and complements may enable managers to

Accepted Answer

improve the firm\'s strategic position

Question 10

Different value drivers contribute to competitive advantage if

Accepted Answer

the increase in perceived value exceeds the corresponding cost increase

Question 11

The Ritz-Carlton provides a personalized customer experience based on sophisticated analysis of data gathering about each guest. This focus on ____ allows the hotel to increase its perceived value.

Accepted Answer

customer service

Question 12

A tablet manufacturer than includes a free stylus with every purchase is using ___ (use noun) to enhance users\' experience and increase the perceived value of its tablets.

Accepted Answer

complements

Question 13

A firm that hopes to achieve a competitive advantage by maintaining an efficient supply chain and taking advantage of economies of scale and a well-trained staff in focusing on

Accepted Answer

cost drivers

Question 14

Economies of scale are

Accepted Answer

decreases in cost per unit as output increases

Question 15

Diseconomies of scale often appear when a firm

Accepted Answer

becomes too large and complex to manage efficiently

Question 16

A ____ strategy attempts to increase the perceived value of a production while controlling costs

Accepted Answer

differentiation

Question 17

A differentiation strategy strategy can be threatened when

Accepted Answer

a product becomes commoditized and the focus of the competition shifts to price

Question 18

A ____ strategy requires achieving the lowest costs in the industry while maintaining a level of value that is acceptable to customers

Accepted Answer

cost-leadership

Question 19

The benefits of a cost-leadership strategy regarding the threat of entry in an industry are

Accepted Answer

protection against entry due to economies of scale

Question 20

Products in the affordable \"business-casual\" clothing market have largely become commoditized, and most retailers have begun to compete mainly on price rather than product features. In this environment, it is impossible for one retailer to gain market share without another losing it. This is an example of a ____ ocean.

Accepted Answer

red

Question 21

Furniture retailer IKEA has used the value innovation framework of ____ to successfully implement a blue ocean strategy

Accepted Answer

eliminate-reduce-raise-create

Question 22

To formulate an appropriate business-level strategy, managers must answer the ____ questions of competition

Accepted Answer

who, what, why, and how

Question 23

The ____ determines whether to pursue a specific narrow part of the market of to go after the broader market

Accepted Answer

scope of competition

Question 24

Value drivers known as ____ add value to a product or service when they are consumed in tandem with the focal product

Accepted Answer

complements

Question 25

The most important cost drivers are

Accepted Answer

-experience curve effects -learning curve effects -economies of scale -cost of input factors

Question 26

The goal of a ____-____ strategy is to achieve costs below those of competitors while maintaining similar value. A firm with this strategy could or could not achieve differentiation parity

Accepted Answer

cost-leadership

Question 27

A firm\'s competitive advantage is determined jointly by ___ effects and firm effects

Accepted Answer

industry

Question 28

At which stage of the industry life cycle does the size of the market expand rapidly?

Accepted Answer

growth

Question 29

An agreed-upon solution about a common set of engineering features and design choices is known as a

Accepted Answer

standard

Question 30

Innovation helps firms to achieve a competitive advantage by

Accepted Answer

redefining the market in their favor

Question 31

The commercialization of an invention by entrepreneurs is called

Accepted Answer

innovation

Question 32

True of false: Innovation can create value for one firm while destroying value for another

Accepted Answer

True

Question 33

Which are the four steps of the innovation process?

Accepted Answer

idea, invention, innovation, imitation

Question 34

Which of the following is an example of innovation?

Accepted Answer

Apple combining smart phone and wristwarch technologies to create the Apple Watch

Question 35

Entrepreneurs innovate by

Accepted Answer

commercializing new ideas and inventions

Question 36

The fundamental question of ____ is how to combine entrepreneurship with the concepts of strategic management in order to achieve a competitive advantage

Accepted Answer

strategic entrepreneurship

Question 37

The ____ identifies how industries tend to develop and change over time

Accepted Answer

industry life cycle

Question 38

The development of most industries follows an:

Accepted Answer

s-curve

Question 39

In which stage of the industry life cycle does competition become more intense, forcing weaker firms out of the industry?

Accepted Answer

Shakeout

Question 40

In the maturity stage of the industry life cycle, industry growth

Accepted Answer

flattens or even declines

Question 41

In the ____ stage of the industry life cycle, falling demand leads to a reduction in market size

Accepted Answer

decline

Question 42

Which of the following are strategic options in the decline stage of the industry life cycle?

Accepted Answer

maintain, exit, harvest, consolidate

Question 43

It is challenging for firms to \"cross the chasm\" because

Accepted Answer

each stage of the industry life cycle features a different group of customers with different preferences and demands

Question 44

According to the crossing-the-chasm framework, the largest difference in consumer expectations is between

Accepted Answer

early adopters and the early majority

Question 45

A significant difference between technology enthusiasts and early adopters is that

Accepted Answer

early adopters are interested in how a new technology will improve their lives, rather than in the details of the technology itself

Question 46

The shakeout stage of the industry life cycle is dominated by

Accepted Answer

the early majority

Question 47

a significant difference between the early majority and the late majority is that

Accepted Answer

the late majority is not confident in using new technologies

Question 48

Which customer segment will only adopt a new product when it becomes absolutely necessary?

Accepted Answer

laggards

Question 49

An innovation that targets existing markets with new technologies, is called

Accepted Answer

a disruptive innovation

Question 50

The most common type of innovation is

Accepted Answer

incremental innovation

Question 51

It is common for firms to start by introducing a(n) ____ innovation

Accepted Answer

radical

Question 52

Which of the following is most likely to produce a radical innovation?  -a leading toy manufacturer with a significant interest in maintaining the status quo -a new sportswear company with a handful of employees that perform a number of loosely-defined roles -an established restaurant chain with a clean organization structure and strictly defined roles for employees -a financial services firm that has been in business for 75 years and has longstanding customer relationships

Accepted Answer

a NEW sportswear company with a handful of employees that perform a number of loosely-defined roles

Question 53

In the ____ stage of the industry life cycle, a moderate amount of large firms compete for a share of a market that has reached its maximum size

Accepted Answer

maturity

Question 54

The four strategic options that managers have in the decline stage are:

Accepted Answer

exit, harvest, maintain, or consolidate

Question 55

True of False: The chasm separating the early adopters from the early majority is the biggest one

Accepted Answer

True

Question 56

Which of the following are characteristics of the early majority?

Accepted Answer

-rely on review by reputable magazines -strong sense of practicality -weigh benefits and costs carefully

Question 57

Innovations that target NEW markets and represent a major break from existing technologies or ways of thinking, such as the digital camera, the touch-screen smart phone, or the decoding of the human genome, are examples of

Accepted Answer

radical innovations

Question 58

The shakeout stage of the industry life cycle is dominated by

Accepted Answer

the early majority

Question 59

Educational organizations such as Coursera are ____ (use verb) traditional universities by offering massive open online courses on the web

Accepted Answer

disruptive

Question 60

What can incumbent firms do to counter disruptive innovations

Accepted Answer

-continue to innovate -protect the low end of the market -disrupt themselves

Question 61

Kava Botanicals, a boutique retailer than sells high-end makeup and accessories, is owned by two makeup manufacturers. Kava Botanicals is an example of which strategic alliance?

Accepted Answer

a joint venture

Question 62

____ strategy involves the decisions that senior management makes and the goal-directed actions it takes to gain and sustain competitive advantage in several industries and markets simultaneously

Accepted Answer

corporate

Question 63

The four underlying strategic management concepts that determine the scope of a firm are which of the following?

Accepted Answer

core competencies, economies of scale, economies of scope, and transaction costs

Question 64

Transaction cost economics help managers do which of the following?

Accepted Answer

choose which activities to do within the firm

BUSMHR 4490 – Exam 2 Learnsmart – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards