question

*The primary aim of strategic management at the business level is:*

answer

> Achieving competitive advantage

question

*Primary value chain activities that involve the effective layout of receiving dock operations (inbound) logistics and support value chain activities that include expertise in process engineering (technology development) characterize what generic strategy?*

answer

> Overall cost leadership

question

*A manufacturing business pursuing cost leadership will likely:*

answer

> Rely on experience effects to raise efficiency

question

*One aspect of using a cost leadership strategy is that experience effects may lead to lower costs. Experience effects are achieved by:*

answer

> Repeating a process until a task becomes easier

question

*The experience curve suggests that cutting prices is a good strategy:*

answer

> If it can induce greater demand and thereby help a firm travel down the experience curve faster

question

*Convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increase from suppliers characterize which type of competitive strategy?*

answer

> Overall cost leadership

question

*Which of the following is a risk (or potential pitfall) of cost leadership?*

answer

> Cost cutting may lead to the loss of desirable features

question

*Support value chain activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure) characterize what generic strategy?*

answer

> Differentiation

question

*A firm can achieve differentiation through all of the following means EXCEPT:*

answer

> Offering lower prices to frequent customers

question

*High product differentiation is generally accompanied by:*

answer

> Decreased emphasis on competition based on price

question

*Which of the following is FALSE regarding how a differentiation strategy can help a firm to improve its competitive position vis-a-vi Porter's five forces?*

answer

> Supplier power is increased because suppliers will be able to charge higher prices for their inputs

question

*A differentiation strategy enables a business to address the five competitive forces by:*

answer

> Lessening competitive rivalry by distinguishing itself

question

*All of the following are potential pitfalls of a differentiation strategy EXCEPT:*

answer

> All rivals share a common input or raw material

question

*Which statement regarding competitive advantages is true?*

answer

> If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer

question

*A narrow market focus is to a differentiation-based strategy as a:*

answer

> Broadly-defined target market is to a cost leadership strategy

question

*A firm following a focus strategy:*

answer

> Must focus on a market segment or group of segments

question

*All of the following are potential pitfalls of a focus strategy EXCEPT:*

answer

> All rivals share a common input or raw material

question

*Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform:*

answer

> Higher than firms that achieve either a cost or a differentiation advantage

question

*The text discuss three approaches to combining overall cost leadership and differentiation competitive advantages. These are the following EXCEPT:*

answer

> Deriving benefits from highly focused and high technology markets

question

*A ______ can be defined as the total profits in an industry at all points along the industry's value chain.*

answer

> Profit pool

question

*All of the following are potential pitfalls of an integrated overall cost and differentiation strategy EXCEPT:*

answer

> Targeting too large a market that causes unit costs to increase

question

*Which of the following is NOT one of the ways the Internet is lowering transaction costs?*

answer

> Evaluating employee performance

question

*Dell Computer has an online ordering system that allows consumers to configure their own computers before Dell builds them. This capability is an example of:*

answer

> Mass customization

question

*Which of the following methods of implementing a differentiation strategy has been greatly enhanced because of the Internet technologies?*

answer

> Mass customization

question

*Which of the following phrases best completes this sentence: Because of the Internet, firms that use a focus strategy have new opportunities to:*

answer

> Asses niche markets in a highly specialized fashion

question

*One of the reasons the Internet is eroding sustainable competitive advantages is:*

answer

> Incumbent firms are entering market segments that they previously considered to be too small

question

*Which of the following statements about the introduction stage of the market life cycle is TRUE?*

answer

> Products or services offered by pioneers may be perceived as differentiated simply because they are new

question

*In the ____ stage of the industry life cycle, the emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low.*

answer

> Introduction

question

*The growth stage of the industry life cycle is characterized by:*

answer

> A growing trend to compete on the basis of price

question

*In the ____ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high.*

answer

> Growth

question

*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?*

answer

> Maturity

question

*A market that mainly competes on the basis of price and has stagnant growth is characteristic of what life cycle stage?*

answer

> Maturity

question

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

answer

> Maturity

question

*In the ___ stage of the industry life cycle, there are few segments, the emphasis on process design is low, and the major functional areas of concern are generally management and finance.*

answer

> Decline

question

*The most likely time to pursue a harvest strategy is in a situation of:*

answer

> Strong competitive advantage

question

*During the decline stage of the industry life cycle, ____ refers to obtaining as much profit as possible and requires that costs be decreased quickly.*

answer

> Harvesting

question

*Research shows that the following are all strategies used by firms engaged in successful turnarounds EXCEPT:*

answer

> Global expansion

question

*As markets mature:*

answer

> There is increasing emphasis on efficiency

question

*Which of the following is most often true about mature markets:*

answer

> Advantages that cannot be duplicated by other competitors are difficult to achieve

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