Question 1

A need for turnaround occurs only during the maturity or declining stage of the life cycle.

Accepted Answer

A) True 
 B)False

Question 2

Atlas Door created competitive advantage by reducing the time to receive and process an order and through installing a just-in-time logistics operation.Which of the following is not a reason for their favorable position relative to the five forces of industry competition?

Accepted Answer

A)  The service was easily imitable.
B)  It created high entry barriers for new entrants.
C)  The integration of many company value-chain activities provided causal ambiguity and path dependency.
D)  It exerted power over its customers.E) B) and C)
F) A) and B)

Question 3

High product differentiation is generally accompanied by

Accepted Answer

A)  higher market share.
B)  higher profit margins and lower costs.
C)  significant economies of scale.
D)  decreased emphasis on competition based on price.E) A) and B)
F) B) and D)

Question 4

Outright sales or sale and leaseback free up considerable cash and improve returns.This is an example 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) A) and B)
F) All of the above

Question 5

Zulily,an online retailer,competes with Amazon and other online retailers by

Accepted Answer

A)  maintaining a large inventory of products.
B)  running a labor-intensive distribution system.
C)  ordering products from vendors to keep in stock until a customer order comes in.
D)  keeping little inventory and ordering only when customers purchase a product.E) B) and C)
F) A) and D)

Question 6

When Cindy Grossman turned around HSN successfully in 2014,which of the following was not one of the practices she used?

Accepted Answer

A)  engaging stakeholders in the discussion
B)  developing a skilled,committed management team
C)  redesigning the company offerings
D)  making all best efforts to offer something for everyoneE) A) and C)
F) All of the above

Question 7

Once established,competitive advantages last forever whether the firm is in a high technology environment or not.

Accepted Answer

A) True 
 B)False

Question 8

Overall cost leadership is a generic strategy unlike others that does not require a tight set of interrelated tactics.

Accepted Answer

A) True 
 B)False

Question 9

The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages.Which of the following is not one of these three approaches?

Accepted Answer

A)  automated and flexible manufacturing systems
B)  deriving benefits from highly-focused and high-technology markets
C)  exploiting the profit pool concept for competitive advantage
D)  coordinating the extended value chain by way of information technologyE) A) and C)
F) A) and D)

Question 10

Value-chain support activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure) characterize which generic strategy?

Accepted Answer

A)  overall cost leadership
B)  differentiation focus
C)  differentiation
D)  stuck-in-the middleE) A) and B)
F) None of the above

Question 11

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry.

Accepted Answer

A) True 
 B)False

Question 12

Aldi,a discount supermarket retailer,has grown from its German base to the rest of Europe,Australia,and the United States by replicating a simple business format.Aldi limits the number of products in each category to ensure product turn,to ease stocking shelves,and to increase its power over supplier.This is an example of an overall cost leadership strategy because it

Accepted Answer

A)  gives them competitive advantage by decreasing productivity.
B)  gives them competitive advantage by tight cost and overhead control.
C)  eliminates the need to compete based on its products.
D)  requires the customer to recognize its efforts.E) A) and D)
F) A) and C)

Question 13

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

Accepted Answer

A)  weak customer loyalty.
B)  high barriers to entry.
C)  high threat of substitution.
D)  low buyer switching costs.E) All of the above
F) A) and C)

Question 14

Mass customization permits companies to manufacture unique products in relatively ________ quantities at ________ costs.

Accepted Answer

A)  large;higher
B)  large;lower
C)  small;higher
D)  small;lowerE) All of the above
F) B) and C)

Question 15

A platform business such as Airbnb leverages data analytics to differentiate its offer from that of competitors such as VRBO.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a potential pitfall of a differentiation strategy?

Accepted Answer

A)  Uniqueness that is not valuable.
B)  The price premium is too high.
C)  All rivals share a common input or raw material.
D)  Perceptions of differentiation may vary between buyers and sellers.E) None of the above
F) All of the above

Question 17

Which of the following is not a potential pitfall of a focus strategy?

Accepted Answer

A)  Erosion of cost advantages can arise within the narrow segment.
B)  Product/service offerings that are highly focused are subject to competition from new entrants.
C)  Focusers can become too focused to satisfy buyer needs.
D)  All rivals share a common input or raw material.E) A) and B)
F) A) and C)

Question 18

The Yoox algorithm permits it to predict which products will sell at which times and where,thus allowing effective stocking to meet customer needs.This a result of

Accepted Answer

A)  purchasing patterns.
B)  data analytics.
C)  physical plant.
D)  flooding the market with ads.E) B) and C)
F) A) and B)

Question 19

A pitfall of integrated overall cost leadership and differentiation is underestimating the expenses associated with coordinating value-creating activities in the extended value chain.

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 C)
F) B) and D)

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

A need for turnaround occurs only during the maturity or declining stage of the life cycle.

Correct Answer
verified

Value-chain support activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure) characterize which generic strategy?

Correct Answer
verified

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

Correct Answer
verified

High product differentiation is generally accompanied by

Correct Answer
verified

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry.

Correct Answer
verified

A pitfall of integrated overall cost leadership and differentiation is underestimating the expenses associated with coordinating value-creating activities in the extended value chain.

Correct Answer
verified

The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages.Which of the following is not one of these three approaches?

Correct Answer
verified

When Cindy Grossman turned around HSN successfully in 2014,which of the following was not one of the practices she used?

Correct Answer
verified

Zulily,an online retailer,competes with Amazon and other online retailers by

Correct Answer
verified

Outright sales or sale and leaseback free up considerable cash and improve returns.This is an example of which turnaround strategy used by successful companies?

Correct Answer
verified

Once established,competitive advantages last forever whether the firm is in a high technology environment or not.

Correct Answer
verified

Correct Answer
verified

Atlas Door created competitive advantage by reducing the time to receive and process an order and through installing a just-in-time logistics operation.Which of the following is not a reason for their favorable position relative to the five forces of industry competition?

Correct Answer
verified

Which of the following is not a potential pitfall of a focus strategy?

Correct Answer
verified

The Yoox algorithm permits it to predict which products will sell at which times and where,thus allowing effective stocking to meet customer needs.This a result of

Correct Answer
verified

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

Correct Answer
verified

Overall cost leadership is a generic strategy unlike others that does not require a tight set of interrelated tactics.

Correct Answer
verified

A platform business such as Airbnb leverages data analytics to differentiate its offer from that of competitors such as VRBO.

Correct Answer
verified

Which of the following is not a potential pitfall of a differentiation strategy?

Correct Answer
verified

Mass customization permits companies to manufacture unique products in relatively quantities at costs.

Correct Answer
verified

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

A need for turnaround occurs only during the maturity or declining stage of the life cycle.

Correct AnswerverifiedShow Answer

Value-chain support activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure) characterize which generic strategy?

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

High product differentiation is generally accompanied by

Correct AnswerverifiedShow Answer

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry.

Correct AnswerverifiedShow Answer

A pitfall of integrated overall cost leadership and differentiation is underestimating the expenses associated with coordinating value-creating activities in the extended value chain.

Correct AnswerverifiedShow Answer

The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages.Which of the following is not one of these three approaches?

Correct AnswerverifiedShow Answer

When Cindy Grossman turned around HSN successfully in 2014,which of the following was not one of the practices she used?

Correct AnswerverifiedShow Answer

Zulily,an online retailer,competes with Amazon and other online retailers by

Correct AnswerverifiedShow Answer

Outright sales or sale and leaseback free up considerable cash and improve returns.This is an example of which turnaround strategy used by successful companies?

Correct AnswerverifiedShow Answer

Once established,competitive advantages last forever whether the firm is in a high technology environment or not.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Atlas Door created competitive advantage by reducing the time to receive and process an order and through installing a just-in-time logistics operation.Which of the following is not a reason for their favorable position relative to the five forces of industry competition?

Correct AnswerverifiedShow Answer

Which of the following is not a potential pitfall of a focus strategy?

Correct AnswerverifiedShow Answer

The Yoox algorithm permits it to predict which products will sell at which times and where,thus allowing effective stocking to meet customer needs.This a result of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Overall cost leadership is a generic strategy unlike others that does not require a tight set of interrelated tactics.

Correct AnswerverifiedShow Answer

A platform business such as Airbnb leverages data analytics to differentiate its offer from that of competitors such as VRBO.

Correct AnswerverifiedShow Answer

Which of the following is not a potential pitfall of a differentiation strategy?

Correct AnswerverifiedShow Answer

Mass customization permits companies to manufacture unique products in relatively ________ quantities at ________ costs.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Mass customization permits companies to manufacture unique products in relatively quantities at costs.

Correct Answer
verified