Question 1

By examining the activity map of Southwest Airlines, one can identify the areas of __________ around which it has developed its business strategy.These themes include limited passenger service, high aircraft utilization, and highly productive ground and gate crews.

Accepted Answer

A)   strategic intent
B)   core competency
C)   differentiation
D)   data analytics

Question 2

Southwest Airlines' tightly integrated activities make its cost leadership strategy more vulnerable to imitation than if its activities were loosely integrated.

Accepted Answer

A) True 
 B)False

Question 3

In the animal food products business, food-product needs of owners of companion animal pets (e.g., dogs and cats)  differ from the needs for food and health-related products of those owning production animals (e.g., livestock) .To which of the following aspects of managing customer relationships does this choice refer?

Accepted Answer

A)   Who: Determining the Customers to Serve
B)   What: Determining Which Customer Needs to Satisfy
C)   How: Determining Core Competencies Necessary to Satisfy Customer Needs
D)   When: Determining When to Satisfy Customer Needs

Question 4

To position itself differently from competitors, a firm must decide whether it intends to perform activities differently or to perform different activities.

Accepted Answer

A) True 
 B)False

Question 5

Almost any identifiable human or organizational characteristic can be used to subdivide a market into segments that differ from one another on a given characteristic.

Accepted Answer

A) True 
 B)False

Question 6

The focused differentiation strategy differs from the differentiation strategy in that:

Accepted Answer

A)   the focused differentiators have a broader competitive scope.
B)   the value-creating activities of focused differentiators are more constrained.
C)   focused differentiators target a narrower customer market.
D)   there are fewer risks with the focused differentiation strategy. C

Question 7

A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets.

Accepted Answer

A) True 
 B)False

Question 8

In general, firms can be MOST effective if they develop business-level strategies that will serve the needs of the "typical customer" in the industry.

Accepted Answer

A) True 
 B)False

Question 9

An entrepreneur is investigating starting a company that provides tax advice to small companies.In order to position his company differently from the existing competitors, the entrepreneur must:

Accepted Answer

A)   analyze the reach, richness, and affiliation the company must have with its customers.
B)   provide tax advice either in a different manner or provide a different kind of tax service than competitors.
C)   offer tax advice at a price lower than the cheapest competitor.
D)   offer tax advice at a higher quality than the best competitor.

Question 10

A firm using a(n)  __________ strategy generally needs to operate "below the radar" of larger and more resource rich firms that serve the broader market.

Accepted Answer

A)   cost leadership
B)   differentiation
C)   focused
D)   integrated cost leadership/differentiation

Question 11

Hyundai allows customers to return their cars if they lose their job within 12 months of purchase.Hyundai is engaged in which of the following aspects of managing customer relationships?

Accepted Answer

A)   Who: Determining the Customers to Serve
B)   What: Determining Which Customer Needs to Satisfy
C)   How: Determining Core Competencies Necessary to Satisfy Customer Needs
D)   When: Determining When to Satisfy Customer Needs B

Question 12

Ever-improving levels of efficiency enhance profit margins for a cost leader.This affects which of the following forces of industry structure most directly?

Accepted Answer

A)   Potential entrants
B)   Substitutes
C)   Buyer power
D)   Supplier power

Question 13

A company using a narrow target market in its business strategy is:

Accepted Answer

A)   following a cost leadership business strategy.
B)   focusing on a broad array of geographic markets.
C)   limiting the group of customer segments served.
D)   decreasing the number of activities on its value chain.

Question 14

Global competition has increased the options for consumers and has made it more imperative for firms to identify the needs of customers to earn above-average returns.

Accepted Answer

A) True 
 B)False

Question 15

When the costs of supplies increase in an industry, the cost leader:

Accepted Answer

A)   may continue competing with rivals on the basis of product features.
B)   will lose customers as a result of price increases.
C)   will be unable to absorb higher costs because cost leaders operate on very narrow profit margins.
D)   may be the only firm able to pay the higher prices and continue to earn average or above-average returns.

Question 16

A firm's core strategy is its __________ strategy.

Accepted Answer

A)   corporate-level
B)   business-level
C)   pricing
D)   international

Question 17

Business-level strategies are concerned specifically with:

Accepted Answer

A)   creating differences between the firm's position and its competitors.
B)   selecting the industries in which the firm will compete.
C)   how functional areas will be organized within the firm.
D)   how a business with multiple physical locations will operate one of those locations.

Question 18

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Accepted Answer

A) True 
 B)False  False

Question 19

A nationwide chain of pet stores wishes to identify the trade-offs that its customers are willing to make between low-cost products such as generic pet foods and differentiated features such as pick-up and delivery of pets for grooming.The best technique for this firm to learn this information would be to use:

Accepted Answer

A)   information networks.
B)   a flexible manufacturing system.
C)   differentiation development planning.
D)   enterprise resource planning.

Question 20

A company selling diapers knows the market is for people with infants and toddlers.However, within that segment, it can further divide the market by a demographic factor like:

Accepted Answer

A)   culture.
B)   lifestyle.
C)   consumption pattern.
D)   income.

Exam 4: Business-Level Strategy

By examining the activity map of Southwest Airlines, one can identify the areas of __________ around which it has developed its business strategy.These themes include limited passenger service, high aircraft utilization, and highly productive ground and gate crews.

Correct Answer
verified

Southwest Airlines' tightly integrated activities make its cost leadership strategy more vulnerable to imitation than if its activities were loosely integrated.

Correct Answer
verified

Correct Answer
verified

To position itself differently from competitors, a firm must decide whether it intends to perform activities differently or to perform different activities.

Correct Answer
verified

Almost any identifiable human or organizational characteristic can be used to subdivide a market into segments that differ from one another on a given characteristic.

Correct Answer
verified

The focused differentiation strategy differs from the differentiation strategy in that:

Correct Answer
verified
C

A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets.

Correct Answer
verified

In general, firms can be MOST effective if they develop business-level strategies that will serve the needs of the "typical customer" in the industry.

Correct Answer
verified

An entrepreneur is investigating starting a company that provides tax advice to small companies.In order to position his company differently from the existing competitors, the entrepreneur must:

Correct Answer
verified

A firm using a(n) __________ strategy generally needs to operate "below the radar" of larger and more resource rich firms that serve the broader market.

Correct Answer
verified

Hyundai allows customers to return their cars if they lose their job within 12 months of purchase.Hyundai is engaged in which of the following aspects of managing customer relationships?

Correct Answer
verified
B

Ever-improving levels of efficiency enhance profit margins for a cost leader.This affects which of the following forces of industry structure most directly?

Correct Answer
verified

A company using a narrow target market in its business strategy is:

Correct Answer
verified

Global competition has increased the options for consumers and has made it more imperative for firms to identify the needs of customers to earn above-average returns.

Correct Answer
verified

When the costs of supplies increase in an industry, the cost leader:

Correct Answer
verified

A firm's core strategy is its __________ strategy.

Correct Answer
verified

Business-level strategies are concerned specifically with:

Correct Answer
verified

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Correct Answer
verified
False

Correct Answer
verified

A company selling diapers knows the market is for people with infants and toddlers.However, within that segment, it can further divide the market by a demographic factor like:

Correct Answer
verified

Exam 4: Business-Level Strategy

By examining the activity map of Southwest Airlines, one can identify the areas of __________ around which it has developed its business strategy.These themes include limited passenger service, high aircraft utilization, and highly productive ground and gate crews.

Correct AnswerverifiedShow Answer

Southwest Airlines' tightly integrated activities make its cost leadership strategy more vulnerable to imitation than if its activities were loosely integrated.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

To position itself differently from competitors, a firm must decide whether it intends to perform activities differently or to perform different activities.

Correct AnswerverifiedShow Answer

Almost any identifiable human or organizational characteristic can be used to subdivide a market into segments that differ from one another on a given characteristic.

Correct AnswerverifiedShow Answer

The focused differentiation strategy differs from the differentiation strategy in that:

Correct AnswerverifiedC

A business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets.

Correct AnswerverifiedShow Answer

In general, firms can be MOST effective if they develop business-level strategies that will serve the needs of the "typical customer" in the industry.

Correct AnswerverifiedShow Answer

An entrepreneur is investigating starting a company that provides tax advice to small companies.In order to position his company differently from the existing competitors, the entrepreneur must:

Correct AnswerverifiedShow Answer

A firm using a(n) __________ strategy generally needs to operate "below the radar" of larger and more resource rich firms that serve the broader market.

Correct AnswerverifiedShow Answer

Hyundai allows customers to return their cars if they lose their job within 12 months of purchase.Hyundai is engaged in which of the following aspects of managing customer relationships?

Correct AnswerverifiedB

Ever-improving levels of efficiency enhance profit margins for a cost leader.This affects which of the following forces of industry structure most directly?

Correct AnswerverifiedShow Answer

A company using a narrow target market in its business strategy is:

Correct AnswerverifiedShow Answer

Global competition has increased the options for consumers and has made it more imperative for firms to identify the needs of customers to earn above-average returns.

Correct AnswerverifiedShow Answer

When the costs of supplies increase in an industry, the cost leader:

Correct AnswerverifiedShow Answer

A firm's core strategy is its __________ strategy.

Correct AnswerverifiedShow Answer

Business-level strategies are concerned specifically with:

Correct AnswerverifiedShow Answer

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Correct AnswerverifiedFalse

Correct AnswerverifiedShow Answer

A company selling diapers knows the market is for people with infants and toddlers.However, within that segment, it can further divide the market by a demographic factor like:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified