Question 1

Experience curves attempt to capture both _______________ and learning effects.

Accepted Answer

A)   Customization
B)   Economies of scale
C)   Economies of scope
D)   Competitive positionE) A) and B)
F) A) and C)

Question 2

Name and give an example for TWO of the four value drivers noted in the text.

Accepted Answer

Product features are commonly mentioned,...

Question 3

The two primary competitive levers that managers can use in order to answer the question of how to compete are:

Accepted Answer

A)   Cost and core competencies.
B)   Value and cost.
C)   Value and core competencies.
D)   Cost and revenues.E) A) and B)
F) A) and C)

Question 4

Combining the dimensions of a firm's __________ and __________ tells us which generic business strategy the firm will pursue.

Accepted Answer

A)   Economies of scope; economies of scale
B)   Five forces; economies of scope
C)   Scope of competition; core capabilities
D)   Strategic position; scope of competitionE) A) and D)
F) All of the above

Question 5

As shown in the Chapter 6 opening case,Whole Foods Market had to seek new strategic initiatives such as enhancing its differentiated appeal and improving its cost structure because it was losing its competitive advantage.

Accepted Answer

A) True 
 B)False

Question 6

A company that uses a differentiation strategy achieves a competitive advantage as long as:

Accepted Answer

A)   The economic value that the firm creates is equal to that of the competition.
B)   The economic value that the firm creates is greater than that of the competition.
C)   The economic value that is created is less than that of the competition.
D)   The economic value that is created is dependent on strategic parity.E) A) and B)
F) A) and C)

Question 7

Due to the dynamic nature of business competition,a firm's strategic position should remain fixed over time.

Accepted Answer

A) True 
 B)False

Question 8

When a business drives costs down as its cumulative output increases,it is referred to as:

Accepted Answer

A)   A learning curve.
B)   An output curve.
C)   A demand curve.
D)   A distribution curve.E) A) and C)
F) B) and C)

Question 9

Generic business-level strategies that a firm can adopt include all of the following EXCEPT:

Accepted Answer

A)   Focused cost-leadership strategy.
B)   Focused differentiation strategy.
C)   Market differentiation strategy.
D)   Broad cost-leadership strategy.E) B) and C)
F) A) and D)

Question 10

The ___________ is the difference between value creation and cost.

Accepted Answer

A)   Profit gap
B)   Net profit
C)   Value gap
D)   Revenue gapE) A) and D)
F) All of the above

Question 11

All of the following are questions that managers answer when selecting a business-level strategy EXCEPT:

Accepted Answer

A)   Who will we serve?
B)   How many product markets will we be in?
C)   What customer needs and desires will we satisfy?
D)   Why do we want to satisfy these needs?E) All of the above
F) None of the above

Question 12

How is the scope of competition different between Rolex and Timex?

Accepted Answer

Rolex has a narrow scope focusing on a s...

Question 13

What is the difference between a strategic position and a strategic trade-off?

Accepted Answer

A strategic position is the firm's profi...

Question 14

When a firm offers products with unique features and higher value for customers than that of the competition,it is implementing a:

Accepted Answer

A)   Product-broad strategy.
B)   Differentiation strategy.
C)   Cost-leadership strategy.
D)   Product-focused strategy.E) A) and B)
F) A) and C)

Question 15

What are the key questions to answer for managers about business-level strategy?

Accepted Answer

Managers must be prepared to address who...

Question 16

When it comes to pursuing an integration strategy,managers manipulate both _____ and ________ drivers.

Accepted Answer

A)   Cost; value
B)   Cost; core capability
C)   Value; core capability
D)   Market; economicE) A) and B)
F) B) and C)

Question 17

Buy Us is a big box retailer who is in direct competition with Walmart and Target.Buy Us initially tried to respond to Walmart by cutting its prices and reducing costs.Walmart has greater buying power and a more efficient supply chain,therefore Buy Us was not able to compete on costs.The company then tried to differentiate itself by signing a celebrity to create an in-house line of clothing.However,Target has a celebrity clothing line that has a more differentiated appeal.The economic value created by Buy Us is currently less than Target and Walmart.It can be said that:

Accepted Answer

A)   Buy Us is successful in creating an integration strategy positioned between Walmart and Target.
B)   Buy Us is "stuck in the middle" and has a competitive disadvantage.
C)   Buy Us is still creating an integration strategy positioned between Walmart and Target and is on the right track. It should continue this business strategy.
D)   Buy Us is "stuck in the middle" and has a competitive advantage.E) A) and B)
F) A) and C)

Question 18

What is the major issue facing Whole Foods in the ChapterCase opener?

Accepted Answer

The firm is facing increasing competitio...

Question 19

One of the reasons that big box retailers like Home Depot are able to achieve economies of scale is that:

Accepted Answer

A)   They have both broad and narrow economies of scope.
B)   They are able to take advantage of physical properties and maximize their scale efficiencies by stocking more merchandise and handling inventory more efficiently.
C)   They are able to take advantage of market size and spread investment losses over many locations.
D)   They have been able to protect themselves from the threat of buyer power by increasing input prices.E) A) and C)
F) B) and C)

Question 20

In order for a firm to formulate an effective business-level strategy,it is important to remember that competitive advantage is determined by:

Accepted Answer

A)   The characteristics of the industry in which a firm competes.
B)   The characteristics of the firm itself.
C)   The characteristics of both the industry and the firm.
D)   The absolute positioning of the firm.E) None of the above
F) A) and B)

Exam 6: Business Strategy: Differentiation, Cost Leadership, and Integration

One of the reasons that big box retailers like Home Depot are able to achieve economies of scale is that:

Correct Answer
verified

Due to the dynamic nature of business competition,a firm's strategic position should remain fixed over time.

Correct Answer
verified

Generic business-level strategies that a firm can adopt include all of the following EXCEPT:

Correct Answer
verified

How is the scope of competition different between Rolex and Timex?

Correct Answer
verified
Rolex has a narrow scope focusing on a s...
View Answer

When a firm offers products with unique features and higher value for customers than that of the competition,it is implementing a:

Correct Answer
verified

Combining the dimensions of a firm's and tells us which generic business strategy the firm will pursue.

Correct Answer
verified

The ___________ is the difference between value creation and cost.

Correct Answer
verified

When it comes to pursuing an integration strategy,managers manipulate both _ and ____ drivers.

Correct Answer
verified

A company that uses a differentiation strategy achieves a competitive advantage as long as:

Correct Answer
verified

The two primary competitive levers that managers can use in order to answer the question of how to compete are:

Correct Answer
verified

What is the difference between a strategic position and a strategic trade-off?

Correct Answer
verified
A strategic position is the firm's profi...
View Answer

What are the key questions to answer for managers about business-level strategy?

Correct Answer
verified
Managers must be prepared to address who...
View Answer

What is the major issue facing Whole Foods in the ChapterCase opener?

Correct Answer
verified
The firm is facing increasing competitio...
View Answer

When a business drives costs down as its cumulative output increases,it is referred to as:

Correct Answer
verified

Name and give an example for TWO of the four value drivers noted in the text.

Correct Answer
verified
Product features are commonly mentioned,...
View Answer

In order for a firm to formulate an effective business-level strategy,it is important to remember that competitive advantage is determined by:

Correct Answer
verified

All of the following are questions that managers answer when selecting a business-level strategy EXCEPT:

Correct Answer
verified

Experience curves attempt to capture both _______________ and learning effects.

Correct Answer
verified

As shown in the Chapter 6 opening case,Whole Foods Market had to seek new strategic initiatives such as enhancing its differentiated appeal and improving its cost structure because it was losing its competitive advantage.

Correct Answer
verified

Correct Answer
verified

Exam 6: Business Strategy: Differentiation, Cost Leadership, and Integration

One of the reasons that big box retailers like Home Depot are able to achieve economies of scale is that:

Correct AnswerverifiedShow Answer

Due to the dynamic nature of business competition,a firm's strategic position should remain fixed over time.

Correct AnswerverifiedShow Answer

Generic business-level strategies that a firm can adopt include all of the following EXCEPT:

Correct AnswerverifiedShow Answer

How is the scope of competition different between Rolex and Timex?

Correct AnswerverifiedRolex has a narrow scope focusing on a s...View AnswerShow Answer

When a firm offers products with unique features and higher value for customers than that of the competition,it is implementing a:

Correct AnswerverifiedShow Answer

Combining the dimensions of a firm's __________ and __________ tells us which generic business strategy the firm will pursue.

Correct AnswerverifiedShow Answer

The ___________ is the difference between value creation and cost.

Correct AnswerverifiedShow Answer

When it comes to pursuing an integration strategy,managers manipulate both _____ and ________ drivers.

Correct AnswerverifiedShow Answer

A company that uses a differentiation strategy achieves a competitive advantage as long as:

Correct AnswerverifiedShow Answer

The two primary competitive levers that managers can use in order to answer the question of how to compete are:

Correct AnswerverifiedShow Answer

What is the difference between a strategic position and a strategic trade-off?

Correct AnswerverifiedA strategic position is the firm's profi...View AnswerShow Answer

What are the key questions to answer for managers about business-level strategy?

Correct AnswerverifiedManagers must be prepared to address who...View AnswerShow Answer

What is the major issue facing Whole Foods in the ChapterCase opener?

Correct AnswerverifiedThe firm is facing increasing competitio...View AnswerShow Answer

When a business drives costs down as its cumulative output increases,it is referred to as:

Correct AnswerverifiedShow Answer

Name and give an example for TWO of the four value drivers noted in the text.

Correct AnswerverifiedProduct features are commonly mentioned,...View AnswerShow Answer

In order for a firm to formulate an effective business-level strategy,it is important to remember that competitive advantage is determined by:

Correct AnswerverifiedShow Answer

All of the following are questions that managers answer when selecting a business-level strategy EXCEPT:

Correct AnswerverifiedShow Answer

Experience curves attempt to capture both _______________ and learning effects.

Correct AnswerverifiedShow Answer

As shown in the Chapter 6 opening case,Whole Foods Market had to seek new strategic initiatives such as enhancing its differentiated appeal and improving its cost structure because it was losing its competitive advantage.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Rolex has a narrow scope focusing on a s...
View Answer

Correct Answer
verified

Combining the dimensions of a firm's and tells us which generic business strategy the firm will pursue.

Correct Answer
verified

Correct Answer
verified

When it comes to pursuing an integration strategy,managers manipulate both _ and ____ drivers.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A strategic position is the firm's profi...
View Answer

Correct Answer
verified
Managers must be prepared to address who...
View Answer

Correct Answer
verified
The firm is facing increasing competitio...
View Answer

Correct Answer
verified

Correct Answer
verified
Product features are commonly mentioned,...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified