Question 1

Which of the following is an accurate statement about economies of scale?

Accepted Answer

A)  Production costs per unit are less in a large facility than in a small facility
B)  The more product a company makes,the lower its variable production costs
C)  Economies of scale are identical to throughput
D)  Doubling factory size typically doubles fixed costs
E)  Companies with economies of scale have high capacity utilization

Question 2

In differentiation strategies,the emphasis is on creating value through uniqueness.

Accepted Answer

A) True 
 B)False

Question 3

A firm pursuing a "blue ocean" strategy:

Accepted Answer

A)  Will collaborate with competitors to create a stronger market position
B)  Will utilize a best cost generic strategy,but in a completely unique way
C)  Will threaten to retaliate against competitive actions
D)  Will erect huge barriers to competition
E)  Will pursue political lobbying

Question 4

An organization would like to expand overseas.Its managers have considered pursing the expansion through a joint venture,but they are concerned that using a joint venture would limit the amount of profits they can make and also limit their control of the venture.Which of the following global expansion tactics should you suggest to these managers?

Accepted Answer

A)  Exporting
B)  Transnational symbiotic venturing
C)  A greenfield venture
D)  Franchising
E)  Licensing

Question 5

How can a firm be successful by pursuing a differentiation strategy? What are some of the risks associated with a differentiation strategy?

Accepted Answer

The only way a differentiation strategy ...

Question 6

A multidomestic approach to international markets:

Accepted Answer

A)  Involves the production and marketing of one product design throughout the world
B)  Involves custom tailoring of products and services around individual market needs
C)  Is almost always preferable to a global strategy
D)  Is almost always less costly than a global strategy
E)  Is only appropriate when economic efficiencies are possible

Question 7

Experience effects mean:

Accepted Answer

A)  An employee can easily learn to do several different jobs within a firm
B)  Employees learn to do jobs more efficiently with repetition
C)  Employees who are slow to learn new tasks will require additional training time
D)  The time required to complete a task will decrease as a predictable function of the number of times the task is repeated
E)  Both B and D are correct

Question 8

Generic strategies are concerned with:

Accepted Answer

A)  The competitive tactics firms use to protect their competitive positions
B)  How the firm intends to position itself to create value for its customers
C)  Selection of the business areas in which the firm will compete
D)  Functional strategies the firm will pursue
E)  None of the above

Question 9

Exporting,licensing,and franchising are international expansion tactics.

Accepted Answer

A) True 
 B)False

Question 10

What is a cost leadership strategy? How might a firm pursue it? What are some of the risks associated with this strategy?

Accepted Answer

Firms pursuing cost leadership set out t...

Question 11

Economies of scale can contribute to reduced costs per unit.

Accepted Answer

A) True 
 B)False

Question 12

Only one firm at a time can pursue a particular business-level strategy.

Accepted Answer

A) True 
 B)False

Question 13

The most important elements in a business model include all of the following except:

Accepted Answer

A)  Selecting a growth strategy
B)  Verifying that sufficient demand exists for a given product at a given price in a particular market
C)  Selecting unique features and technologies to be imbedded into the products or services
D)  Determining how to capture a portion of the value created in terms of revenues and profits
E)  Identifying market segments to be targeted

Question 14

At the maturity stage of the life cycle,revenue growth accelerates rapidly.

Accepted Answer

A) True 
 B)False

Question 15

A competitive shakeout usually occurs at the beginning of the growth stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 16

What are the key elements in defining a business model?

Accepted Answer

Some of the most important elements in a...

Question 17

Competitive tactics are concerned with how the firm intends to position itself to create value for its customers.

Accepted Answer

A) True 
 B)False

Question 18

A business-level strategy consists of the competitive approach of a single line-of-business instead of the entire corporation.

Accepted Answer

A) True 
 B)False

Question 19

During the maturity stage of the industry life cycle:

Accepted Answer

A)  Product differentiation becomes easier to establish
B)  Customers focus on product quality and availability
C)  Firms have an opportunity to create entry barriers
D)  High-volume production tends to dominate manufacturing strategy
E)  First-mover advantages are commonly available

Exam 5: Business-Level Strategies

A multidomestic approach to international markets:

Correct Answer
verified

Which of the following is an accurate statement about economies of scale?

Correct Answer
verified

Exporting,licensing,and franchising are international expansion tactics.

Correct Answer
verified

What are the key elements in defining a business model?

Correct Answer
verified
Some of the most important elements in a...
View Answer

Economies of scale can contribute to reduced costs per unit.

Correct Answer
verified

Experience effects mean:

Correct Answer
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The most important elements in a business model include all of the following except:

Correct Answer
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Generic strategies are concerned with:

Correct Answer
verified

Competitive tactics are concerned with how the firm intends to position itself to create value for its customers.

Correct Answer
verified

In differentiation strategies,the emphasis is on creating value through uniqueness.

Correct Answer
verified

A business-level strategy consists of the competitive approach of a single line-of-business instead of the entire corporation.

Correct Answer
verified

How can a firm be successful by pursuing a differentiation strategy? What are some of the risks associated with a differentiation strategy?

Correct Answer
verified
The only way a differentiation strategy ...
View Answer

At the maturity stage of the life cycle,revenue growth accelerates rapidly.

Correct Answer
verified

Correct Answer
verified

A firm pursuing a "blue ocean" strategy:

Correct Answer
verified

What is a cost leadership strategy? How might a firm pursue it? What are some of the risks associated with this strategy?

Correct Answer
verified
Firms pursuing cost leadership set out t...
View Answer

Only one firm at a time can pursue a particular business-level strategy.

Correct Answer
verified

During the maturity stage of the industry life cycle:

Correct Answer
verified

A competitive shakeout usually occurs at the beginning of the growth stage of the product life cycle.

Correct Answer
verified

Exam 5: Business-Level Strategies

A multidomestic approach to international markets:

Correct AnswerverifiedShow Answer

Which of the following is an accurate statement about economies of scale?

Correct AnswerverifiedShow Answer

Exporting,licensing,and franchising are international expansion tactics.

Correct AnswerverifiedShow Answer

What are the key elements in defining a business model?

Correct AnswerverifiedSome of the most important elements in a...View AnswerShow Answer

Economies of scale can contribute to reduced costs per unit.

Correct AnswerverifiedShow Answer

Experience effects mean:

Correct AnswerverifiedShow Answer

The most important elements in a business model include all of the following except:

Correct AnswerverifiedShow Answer

Generic strategies are concerned with:

Correct AnswerverifiedShow Answer

Competitive tactics are concerned with how the firm intends to position itself to create value for its customers.

Correct AnswerverifiedShow Answer

In differentiation strategies,the emphasis is on creating value through uniqueness.

Correct AnswerverifiedShow Answer

A business-level strategy consists of the competitive approach of a single line-of-business instead of the entire corporation.

Correct AnswerverifiedShow Answer

How can a firm be successful by pursuing a differentiation strategy? What are some of the risks associated with a differentiation strategy?

Correct AnswerverifiedThe only way a differentiation strategy ...View AnswerShow Answer

At the maturity stage of the life cycle,revenue growth accelerates rapidly.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A firm pursuing a "blue ocean" strategy:

Correct AnswerverifiedShow Answer

What is a cost leadership strategy? How might a firm pursue it? What are some of the risks associated with this strategy?

Correct AnswerverifiedFirms pursuing cost leadership set out t...View AnswerShow Answer

Only one firm at a time can pursue a particular business-level strategy.

Correct AnswerverifiedShow Answer

During the maturity stage of the industry life cycle:

Correct AnswerverifiedShow Answer

A competitive shakeout usually occurs at the beginning of the growth stage of the product life cycle.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Some of the most important elements in a...
View 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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The only way a differentiation strategy ...
View 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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Firms pursuing cost leadership set out t...
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Correct Answer
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Correct Answer
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Correct Answer
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