Question 1

A firm following a focus strategy must focus on

Accepted Answer

A)   governmental regulations.
B)   a market segment or group of segments.
C)   rising cost of inputs.
D)   avoiding entering international markets.E) A) and B)
F) A) and C)

Question 2

An important potential pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become stuck in the middle.

Accepted Answer

A) True 
 B)False

Question 3

The factors that lead to a low-cost position also provide a substantial ____ barriers position with respect to _______ products introduced by new and existing competitors.

Accepted Answer

A)   entry; substitute
B)   exit; primary
C)   product; substitute
D)   entry; primaryE) A) and C)
F) None of the above

Question 4

In the textbook example of Atlas Door,human talent trained in the new just-in-time systems have little reason to leave the company and therefore this is a sustainable competitive advantage.

Accepted Answer

A) True 
 B)False

Question 5

Mass customization enables manufacturers to be more responsive to customer demands for high quality products.

Accepted Answer

A) True 
 B)False

Question 6

A cost leadership strategy is not susceptible to the risk of reduced flexibility.

Accepted Answer

A) True 
 B)False

Question 7

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 general management and finance.

Accepted Answer

A)   introduction
B)   growth
C)   decline
D)   maturityE) B) and C)
F) None of the above

Question 8

Dell lost its competitive advantage starting in 2007 because it

Accepted Answer

A)   did not deliver innovations to respond to changing market demand.
B)   developed a highly performant just-in-time delivery system.
C)   did not reward its employees.
D)   let suppliers have dominant power.E) A) and B)
F) A) and C)

Question 9

A firm striving for cost leadership will typically spend relatively more on product-related research and development than on process-related research and development.

Accepted Answer

A) True 
 B)False

Question 10

Piecemeal productivity improvements during a turnaround typically do not involve

Accepted Answer

A)   business process reengineering.
B)   increased capacity utilization.
C)   benchmarking.
D)   expansion of company product market scope.E) C) and D)
F) A) and B)

Question 11

Many companies have a tight integration among their value-creating activities and have implemented just-in-time manufacturing.The textbook example of Atlas Door suggests that this is a competitive advantage,but it is easily imitated and therefore may not be sustainable in the long run.

Accepted Answer

A) True 
 B)False

Question 12

Cheesecake Factory differentiates itself along several different dimensions at once by offering high-quality food,the widest and deepest menu in its class of restaurants,and premium locations.

Accepted Answer

A) True 
 B)False

Question 13

In technology intensive industries,the duration of competitive advantages is declining.

Accepted Answer

A) True 
 B)False

Question 14

Corporations increasingly collect and analyze data on their customers.This is known as

Accepted Answer

A)   profit analysis.
B)   big data.
C)   cost reduction.
D)   automated analysis.E) B) and D)
F) B) and C)

Question 15

Piecemeal productivity improvements can be used by a mature business in need of a turnaround.

Accepted Answer

A) True 
 B)False

Question 16

A business that strives for a low-cost advantage must attain a(n) _______ cost advantage over rivals.

Accepted Answer

A)   relative
B)   evolutionary
C)   absolute
D)   potentialE) C) and D)
F) None of the above

Question 17

The experience curve is a way of looking at price benefits that come from studying sales figures.

Accepted Answer

A) True 
 B)False

Question 18

A firm can attain an overall cost leadership position by purchasing media in large blocks and maximizing sales force utilization through territory management.

Accepted Answer

A) True 
 B)False

Question 19

HSN CEO Mindy Grossman managed a successful turnaround by first engaging with employees.

Accepted Answer

A) True 
 B)False

Question 20

Research shows that which one of the following is not a strategy used by firms engaged in successful turnarounds?

Accepted Answer

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

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

Piecemeal productivity improvements can be used by a mature business in need of a turnaround.

Correct AnswerverifiedShow Answer

In the textbook example of Atlas Door,human talent trained in the new just-in-time systems have little reason to leave the company and therefore this is a sustainable competitive advantage.

Correct AnswerverifiedShow Answer

The experience curve is a way of looking at price benefits that come from studying sales figures.

Correct AnswerverifiedShow Answer

A business that strives for a low-cost advantage must attain a(n) _______ cost advantage over rivals.

Correct AnswerverifiedShow Answer

An important potential pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become stuck in the middle.

Correct AnswerverifiedShow Answer

A cost leadership strategy is not susceptible to the risk of reduced flexibility.

Correct AnswerverifiedShow Answer

A firm can attain an overall cost leadership position by purchasing media in large blocks and maximizing sales force utilization through territory management.

Correct AnswerverifiedShow Answer

Dell lost its competitive advantage starting in 2007 because it

Correct AnswerverifiedShow Answer

Cheesecake Factory differentiates itself along several different dimensions at once by offering high-quality food,the widest and deepest menu in its class of restaurants,and premium locations.

Correct AnswerverifiedShow Answer

In technology intensive industries,the duration of competitive advantages is declining.

Correct AnswerverifiedShow Answer

Research shows that which one of the following is not a strategy used by firms engaged in successful turnarounds?

Correct AnswerverifiedShow Answer

HSN CEO Mindy Grossman managed a successful turnaround by first engaging with employees.

Correct AnswerverifiedShow Answer

The factors that lead to a low-cost position also provide a substantial ____ barriers position with respect to _______ products introduced by new and existing competitors.

Correct AnswerverifiedShow Answer

A firm striving for cost leadership will typically spend relatively more on product-related research and development than on process-related research and development.

Correct AnswerverifiedShow Answer

Mass customization enables manufacturers to be more responsive to customer demands for high quality products.

Correct AnswerverifiedShow Answer

Piecemeal productivity improvements during a turnaround typically do not involve

Correct AnswerverifiedShow Answer

Corporations increasingly collect and analyze data on their customers.This is known as

Correct AnswerverifiedShow Answer

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 general management and finance.

Correct AnswerverifiedShow Answer

A firm following a focus strategy must focus on

Correct AnswerverifiedShow Answer

Many companies have a tight integration among their value-creating activities and have implemented just-in-time manufacturing.The textbook example of Atlas Door suggests that this is a competitive advantage,but it is easily imitated and therefore may not be sustainable in the long run.

Correct AnswerverifiedShow Answer

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The factors that lead to a low-cost position also provide a substantial barriers position with respect to ___ products introduced by new and existing competitors.

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