Question 1

Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy?

Accepted Answer

A)  Firms that target too large a market that causes unit costs to increase.
B)  Firms that underestimate the expenses associated with coordinating value-creating activities in the extended value chain.
C)  Firms that fail to attain both strategies may end up with neither and become stuck-in-the-middle.
D)  Firms that miscalculate sources of revenue and profit pools in the company industry.E) A) and C)
F) C) and D)

Question 2

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)  declineE) None of the above
F) All of the above

Question 3

An overall ________ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

Accepted Answer

A)  differentiation
B)  low-cost
C)  focused
D)  high-costE) None of the above
F) B) and C)

Question 4

Company competitive advantages can be eroded by all the following except

Accepted Answer

A)  rapid changes in technology.
B)  globalization.
C)  actions by rivals within the industry.
D)  actions by workers outside of the industry.E) A) and B)
F) A) and C)

Question 5

Barnes and Noble lost its market share in book retailing to Amazon.It tried to regain market share by offering a similar electronic reader,the Nook,to the Amazon Kindle series.This demonstrates that Barnes and Noble lacked

Accepted Answer

A)  a short-term strategy.
B)  a company-wide strategy.
C)  a sustainable competitive advantage.
D)  good suppliers.E) C) and D)
F) B) and D)

Question 6

Most turnarounds require a firm to carefully analyze its relevant environments.________ analysis results in actions aimed at reduced costs and higher efficiency.

Accepted Answer

A)  External
B)  Internal
C)  Global
D)  EnvironmentalE) All of the above
F) C) and D)

Question 7

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.E) All of the above
F) C) and D)

Question 8

What is a focus strategy? Provide an example where this has been implemented successfully.

Accepted Answer

A focus strategy is based on the choice ...

Question 9

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

Accepted Answer

A)  having brand-loyal customers become more sensitive to prices.
B)  increasing economies of scale.
C)  providing protection against rivalry.
D)  serving a broader market segment.E) A) and B)
F) None of the above

Question 10

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.E) None of the above
F) A) and B)

Question 11

A platform business is like a matchmaker in that it can bring together buyers and sellers.An example of a successful platform provider is Facebook.By attracting and retaining users through expanding services it differentiates itself from more narrowly-focused competitors such as Twitter.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Andersen Windows lowered costs,enhanced quality and variety,and improved its response time to customers by

Accepted Answer

A)  creating a new paper-based catalog.
B)  creating an interactive computer version of its paper catalogs.
C)  creating an integrated computer system of catalogs,products,orders,and manufacturing.
D)  creating a manufacturing system for ordering parts.E) All of the above
F) B) and C)

Question 14

An overall low-cost position enables a firm to achieve ________ returns despite strong competition.

Accepted Answer

A)  below average
B)  average
C)  no
D)  above averageE) C) and D)
F) A) and D)

Question 15

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

Accepted Answer

A)  spreading out a given expense or investment over a greater volume.
B)  hiring more experienced personnel.
C)  repeating a process until a task becomes easier.
D)  competing in an industry for a long time.E) A) and B)
F) All of the above

Question 16

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.E) B) and D)
F) A) and B)

Question 17

Which statement regarding competitive advantages is true?

Accepted Answer

A)  With an overall cost leadership strategy,firms need not be concerned with parity on differentiation.
B)  In the long run,a business with one or more competitive advantages is probably destined to earn normal profits.
C)  If several competitors pursue similar differentiation tactics,they may all be perceived as equals in the mind of the consumer.
D)  Attaining multiple types of competitive advantage is a recipe for failure.E) B) and C)
F) A) and D)

Question 18

Improving business processes by reengineering them,benchmarking specific activities against industry leaders,encouraging employee input to identify excess costs,increasing capacity utilization,and improving employee productivity lead to a significant overall gain.These are examples of which turnaround strategy used by successful companies?

Accepted Answer

A)  asset and cost surgery
B)  selective product and market pruning
C)  piecemeal productivity improvements
D)  global expansionE) B) and C)
F) A) and D)

Question 19

Caterpillar uses data analytics to differentiate itself from competitors by providing information services.

Accepted Answer

A) True 
 B)False

Question 20

Atlas Door created competitive advantages in overall low cost and differentiation by creating ________ among value-chain activities.

Accepted Answer

A)  substitutes
B)  advantages
C)  disadvantages
D)  linkagesE) A) and C)
F) C) and D)

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

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?

Correct Answer
verified

Atlas Door created competitive advantages in overall low cost and differentiation by creating ________ among value-chain activities.

Correct Answer
verified

A platform business is like a matchmaker in that it can bring together buyers and sellers.An example of a successful platform provider is Facebook.By attracting and retaining users through expanding services it differentiates itself from more narrowly-focused competitors such as Twitter.

Correct Answer
verified

Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy?

Correct Answer
verified

Barnes and Noble lost its market share in book retailing to Amazon.It tried to regain market share by offering a similar electronic reader,the Nook,to the Amazon Kindle series.This demonstrates that Barnes and Noble lacked

Correct Answer
verified

An overall low-cost position enables a firm to achieve ________ returns despite strong competition.

Correct Answer
verified

Most turnarounds require a firm to carefully analyze its relevant environments.________ analysis results in actions aimed at reduced costs and higher efficiency.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Andersen Windows lowered costs,enhanced quality and variety,and improved its response time to customers by

Correct Answer
verified

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

Correct Answer
verified

Company competitive advantages can be eroded by all the following except

Correct Answer
verified

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

Correct Answer
verified

An overall ________ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

Correct Answer
verified

Correct Answer
verified

Which statement regarding competitive advantages is true?

Correct Answer
verified

Caterpillar uses data analytics to differentiate itself from competitors by providing information services.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

What is a focus strategy? Provide an example where this has been implemented successfully.

Correct Answer
verified
A focus strategy is based on the choice ...
View Answer

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

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?

Correct AnswerverifiedShow Answer

Atlas Door created competitive advantages in overall low cost and differentiation by creating ________ among value-chain activities.

Correct AnswerverifiedShow Answer

A platform business is like a matchmaker in that it can bring together buyers and sellers.An example of a successful platform provider is Facebook.By attracting and retaining users through expanding services it differentiates itself from more narrowly-focused competitors such as Twitter.

Correct AnswerverifiedShow Answer

Which of the following is not a potential pitfall of an integrated overall low cost and differentiation strategy?

Correct AnswerverifiedShow Answer

Barnes and Noble lost its market share in book retailing to Amazon.It tried to regain market share by offering a similar electronic reader,the Nook,to the Amazon Kindle series.This demonstrates that Barnes and Noble lacked

Correct AnswerverifiedShow Answer

An overall low-cost position enables a firm to achieve ________ returns despite strong competition.

Correct AnswerverifiedShow Answer

Most turnarounds require a firm to carefully analyze its relevant environments.________ analysis results in actions aimed at reduced costs and higher efficiency.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Andersen Windows lowered costs,enhanced quality and variety,and improved its response time to customers by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Company competitive advantages can be eroded by all the following except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An overall ________ position enables a firm to achieve above-average returns because it protects firms against powerful buyers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which statement regarding competitive advantages is true?

Correct AnswerverifiedShow Answer

Caterpillar uses data analytics to differentiate itself from competitors by providing information services.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is a focus strategy? Provide an example where this has been implemented successfully.

Correct AnswerverifiedA focus strategy is based on the choice ...View AnswerShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A focus strategy is based on the choice ...
View Answer