question

A business-level strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage in specific product markets. a. True b. False

answer

True

question

Every firm uses all levels of strategy: corporate, acquisition and restructuring, international and cooperative. a. True b. False

answer

False

question

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. a. True b. False

answer

True

question

Global competition has increased the options for consumers and has made it more imperative for firms to identify the needs of customers in order to earn above-average returns. a. True b. False

answer

True

question

Effective use of the generic business strategies allows the firm to favorably position itself relative to the five forces. a. True b. False

answer

True

question

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. True b. False

answer

True

question

The generalized forms of value that goods and services provide are either low cost with acceptable features or highly differentiated features with acceptable cost. a. True b. False

answer

True

question

An English professor spends her summers writing low-brow romance novels that sell directly to paperback. She writes under a fictional name because she is embarrassed to admit to her colleagues and students how she earns the extra money for foreign vacations. The professor is correct in her concern that she is serving customer needs that are objectively inferior and bad. a. True b. False

answer

False

question

Changing consumer needs is illustrated by Starbucks' allowing consumers to have an experience rather than just a cup of coffee and to design their own drinks. a. True b. False

answer

True

question

Companies without the core competencies in their value chain activities and support functions are still able to implement successfully a either a cost leadership or a differentiation strategy, although they cannot implement an integrated cost leadership/differentiation strategy. a. True b. False

answer

False

question

To position itself differently from competitors, a firm must decide to either perform activities differently or to perform different activities. a. True b. False

answer

True

question

Southwest Airlines' tightly integrated activities make its cost leadership strategy more vulnerable to imitation than if its activities were loosely integrated. a. True b. False

answer

False

question

Strategic fit among the many activities in the value chain is critical for competitive advantage because it is more difficult for a competitor to match a configuration of integrated activities than to imitate a particular activity such as sales promotion or a process technology. a. True b. False

answer

True

question

The difference between the cost leadership and differentiation business-level strategies, and the focused cost leadership and focused differentiation strategies, is their basis for customer value. a. True b. False

answer

False

question

The integrated cost leadership/differentiation strategy is superior to the other business-level strategies. a. True b. False

answer

False

question

The key to Southwest Airlines' success has been its ability to continuously reduce costs while providing customers with superior levels of differentiation such as an engaging culture. a. True b. False

answer

False

question

The best of the generic business strategies is the integrated cost leadership/differentiation strategy. a. True b. False

answer

False

question

Low-cost leaders usually concentrate on the value chain activities of inbound logistics and outbound logistics as a means to reduce costs. a. True b. False

answer

True

question

Firms implementing cost leadership strategies often sell no-frills standardized goods or services (but with competitive levels of differentiation) to the industry's most typical customers. a. True b. False

answer

True

question

A low-cost position in the industry is not a valuable defense against rivals when competing on the basis of price. a. True b. False

answer

False

question

Walmart's change in strategy to attract more upscale customers will likely succeed because cost leaders are good at differentiating. a. True b. False

answer

False

question

Walmart's actions of becoming more upscale with the intent of taking sales away from Target provided an opening for competitors such as Amazon and Family Dollar to better compete on the basis of price and attract some of Walmart's customer. a. True b. False

answer

True

question

The value-creating activities associated with the cost leadership strategy and differentiation strategy are the same. a. True b. False

answer

False

question

Human resources and other support functions are not value-creating activities in the value chain; only the value chain activities create value. a. True b. False

answer

False

question

In general, firms can be most effective if they develop business-level strategies that will serve the needs of the "typical customer" in the industry. a. True b. False

answer

False

question

The differentiation strategy is effective for products that are expensive, luxury consumer goods. It is not effective for common, inexpensive products such as doughnuts. a. True b. False

answer

False

question

A risk of the differentiation strategy is that the firm's means of differentiation may eventually not provide value for which customers are willing to pay. a. True b. False

answer

True

question

Unlike a cost leadership and a differentiation strategy, both focus strategies are less dependent on the completion of various value chain and support activities in order to compete in a superior manner. a. True b. False

answer

False

question

The activities in the value chains of companies using focus strategies are quite different than the activities in the value chains of companies using industry-wide business strategies. a. True b. False

answer

False

question

A new generation of lunch trucks in cities such as New York, San Francisco, and Los Angeles serving high-end fare such as hamburgers made from grass-fed cattle, escargot, and crème brulee illustrate the focus cost leadership strategy. a. True b. False

answer

True

question

A risk of a focus strategy is that the needs of the customer within a narrow competitive segment may become more similar to those needs of customers in the whole market. a. True b. False

answer

True

question

Although it is a cost leader, IKEA also offers differentiated features that appeal to its target customers, including its unique furniture designs, in-store playrooms for children, wheelchairs for customer use, and extended hours. a. True b. False

answer

True

question

Flexible manufacturing systems, information networks, and total quality management are three techniques that make it possible for firms to implement the focused differentiation strategy. a. True b. False

answer

False

question

A flexible manufacturing system is a computer-controlled process used to produce a variety of products in moderate, flexible quantities with minimal manual intervention. a. True b. False

answer

True

question

Because of its focus on innovation and quality manufacturing, Total Quality Management is not useful for firms that follow a cost leadership strategy. a. True b. False

answer

False

question

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies. a. True b. False

answer

False

question

The hazard of getting "stuck in the middle" applies to firms using any business strategy. a. True b. False

answer

True

question

Research shows that firms using a hybrid strategy (i.e., integrated cost leadership/differentiation) often outperform firms using pure strategies ( i.e., cost leadership or differentiation). a. True b. False

answer

False

question

Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in a. the selection of industries in which the firm will compete. b. specific product markets. c. primary value chain activities. d. particular geographic locations.

answer

b. specific product markets.

question

A firm's core strategy is its strategy. a. corporate b. business c. pricing d. international

answer

b. business

question

. When selecting a business level strategy, the firm must determine all of the following EXCEPT a. how will the customer's needs be satisfied? b. who is the customer? c. what are the customers' needs? d. why should these customers' needs be satisfied?

answer

d. why should these customers' needs be satisfied?

question

. The three dimensions of a firm's relationships with customers include all the following EXCEPT a. exclusiveness. b. affiliation. c. richness. d. reach.

answer

a. exclusiveness.

question

Which of the following is TRUE? a. As customer loyalty increases, customers are more sensitive to price increases. b. Customer loyalty has a positive relationship with firm profitability. c. Customer loyalty is fragile and cannot reliably be considered a factor in firm success. d. Customer loyalty is of importance only to firms using the differentiation strategy.

answer

b. Customer loyalty has a positive relationship with firm profitability.

question

The dimension of relationships with customers is particularly important for social networking sites such as Facebook and MySpace. a. reach b. richness c. affiliation d. social

answer

a. reach

question

Amazon has built capabilities around Internet technology and e-commerce to facilitate information exchanges with its customers in a cost effective manner. This represents which of the three service dimension? a. reach b. richness c. affiliation d. None of the these options are correct.

answer

b. richness

question

Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances a. the reach of the company toward the customer. b. the ability to identify the customer. c. the richness of the relationship with the customer. d. affiliation with the customer.

answer

d. affiliation with the customer.

question

Before the firm decides what products to offer and what benefits and features they will have, the firm must decide all the following questions EXCEPT a. who the firm should serve. b. when the customer's needs should be satisfied. c. what needs the firm should satisfy. d. what core competencies are needed to satisfy customer needs.

answer

b. when the customer's needs should be satisfied.

question

In the animal food products business, food-product needs of owners of companion animals pets (e.g., dogs and cats) differ from the needs for food and health-related products of those owning production animals (e.g., livestock). Which of the following aspects of managing customer relationships does this choice refer to? a. Who: Determining the Customers to Serve b. What: Determining Which Customer Needs to Satisfy c. How: Determining Core Competencies Necessary to satisfy Customer Needs d. When: Determining When to Satisfy Customer Needs

answer

a. Who: Determining the Customers to Serve

question

Starbuck's determined that all of the following customer needs were important EXCEPT a. low price. b. the experience associated with drinking coffee, not just the coffee. c. the actual product of service (e.g., a cup of coffee), not the experience. d. allowing customer to design their own drinks.

answer

a. low price.

question

Hyundai allows customers to return their cars if they lose their job within 12 months of purchase. Which of the following aspects of managing customer relationships is Hyundai engaged in? a. Who: Determining the Customers to Serve b. What: Determining Which Customer Needs to Satisfy c. How: Determining Core Competencies Necessary to satisfy Customer Needs d. When: Determining When to Satisfy Customer Needs

answer

b. What: Determining Which Customer Needs to Satisfy

MGMT490 Exam2 CH4&5 part1 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards