Question 1

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) B) and D)
F) All of the above

Question 2

Firms in turnaround situations find that cutting administrative expenses and inventories and speeding up collection of receivables are ineffective strategies.

Accepted Answer

A) True 
 B)False

Question 3

In the textbook example of Atlas Door, it created low entry barriers for new entrants through its development of competitive advantages.

Accepted Answer

A) True 
 B)False

Question 4

The French automobile maker, Renault, attains competitive advantage by revamping cars to be more cost efficient.

Accepted Answer

A) True 
 B)False

Question 5

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) None of the above
F) All of the above

Question 6

An overall high-cost position enables a firm to achieve above-average returns despite strong competition.

Accepted Answer

A) True 
 B)False

Question 7

Using information systems to streamline and automate the primary activities of a manufacturing company value chain does not provide competitive advantage.

Accepted Answer

A) True 
 B)False

Question 8

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) B) and C)
F) C) and D)

Question 9

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) B) and C)
F) A) and C)

Question 10

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 11

Which of the following statements about the introduction stage of the market life cycle is true?

Accepted Answer

A)  It produces relatively large, positive cash flows.
B)  Strong brand recognition seldom serves as an important switching cost.
C)  Market share gains by pioneers are usually easily sustained for many years.
D)  Products offered by pioneers may be perceived as differentiated because they are new.E) B) and D)
F) A) and B)

Question 12

Many firms have achieved success by integrating activities throughout the extended value chain by using _______ to link their own value chain with the value chains of their customers and suppliers.

Accepted Answer

A)  customization
B)  information technology
C)  human resources
D)  competitive advantageE) All of the above
F) A) and B)

Question 13

The Pepsi algorithm that permits it to lower out of stock inventory is a result of using

Accepted Answer

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

Question 14

A potential pitfall of a focus strategy is that cost advantages will not change over time.

Accepted Answer

A) True 
 B)False

Question 15

Piecemeal productivity improvements are not useful as a turnaround strategy because they are not cumulative.

Accepted Answer

A) True 
 B)False

Question 16

Tesco is saving 3 million USD a year alone in landfill taxes by simply sending its used cooking oil and chicken fat to be used to generate bioenergy rather than putting it in a landfill. This is an example of an overall cost leadership strategy because it

Accepted Answer

A)  gives them competitive advantage by reducing energy costs.
B)  gives them competitive advantage by decreasing productivity.
C)  eliminates the need to compete based on its products.
D)  requires the customer to recognize its efforts.E) All of the above
F) C) and D)

Question 17

In the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high.

Accepted Answer

A)  growth
B)  introduction
C)  decline
D)  maturityE) B) and D)
F) A) and B)

Question 18

A disadvantage of firms that successfully integrate overall cost leadership and a differentiation strategy is that they are relatively easy for competitors to imitate.

Accepted Answer

A) True 
 B)False

Question 19

With experience, unit costs of production decline as _________ increases in most industries.

Accepted Answer

A)  costs
B)  volume
C)  price
D)  outputE) C) and D)
F) A) and B)

Question 20

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) None of the above

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

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

Many firms have achieved success by integrating activities throughout the extended value chain by using _______ to link their own value chain with the value chains of their customers and suppliers.

Correct AnswerverifiedShow Answer

A firm following a focus strategy must focus on

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the textbook example of Atlas Door, it created low entry barriers for new entrants through its development of competitive advantages.

Correct AnswerverifiedShow Answer

In the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high.

Correct AnswerverifiedShow Answer

Firms in turnaround situations find that cutting administrative expenses and inventories and speeding up collection of receivables are ineffective strategies.

Correct AnswerverifiedShow Answer

A potential pitfall of a focus strategy is that cost advantages will not change over time.

Correct AnswerverifiedShow Answer

Tesco is saving 3 million USD a year alone in landfill taxes by simply sending its used cooking oil and chicken fat to be used to generate bioenergy rather than putting it in a landfill. This is an example of an overall cost leadership strategy because it

Correct AnswerverifiedShow Answer

The Pepsi algorithm that permits it to lower out of stock inventory is a result of using

Correct AnswerverifiedShow Answer

The French automobile maker, Renault, attains competitive advantage by revamping cars to be more cost efficient.

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

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

Piecemeal productivity improvements are not useful as a turnaround strategy because they are not cumulative.

Correct AnswerverifiedShow Answer

With experience, unit costs of production decline as _________ increases in most industries.

Correct AnswerverifiedShow Answer

Which of the following statements about the introduction stage of the market life cycle is true?

Correct AnswerverifiedShow Answer

An overall high-cost position enables a firm to achieve above-average returns despite strong competition.

Correct AnswerverifiedShow Answer

High product differentiation is generally accompanied by

Correct AnswerverifiedShow Answer

Using information systems to streamline and automate the primary activities of a manufacturing company value chain does not provide competitive advantage.

Correct AnswerverifiedShow Answer

A disadvantage of firms that successfully integrate overall cost leadership and a differentiation strategy is that they are relatively easy for competitors to imitate.

Correct AnswerverifiedShow Answer

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