Question 1

If a firm's strategy can be implemented, then it must be aligned with the appropriate implementation levers.

Accepted Answer

A) True 
 B)False

Question 2

When a company is acquired by another, but still operates independently, it operates as a(n)  ________.

Accepted Answer

A)   strategic business unit
B)   separate company
C)   independent entity
D)   subsidiary independent company A

Question 3

A successful differentiation position requires that a firm satisfy all but which of the following criteria?

Accepted Answer

A)   one or more buyer needs in a manner superior to competitors.
B)   customers so that they pay higher prices for the added points of differentiation
C)   the requirement of perceived uniqueness about the product that attracts customers
D)   competitive pricing

Question 4

According to Porter, what are the two key factors affecting the economic logic of competitive advantage?

Accepted Answer

According to Porter, two key factors affect the economic logic of competitive advantage. These alternative sources of advantage are having a lower cost structure than industry competitors and having a product or service that customers perceive as differentiated from other products in the industry to the point that they will pay higher prices than what is charged for other products in the industry.

Question 5

As production experience is gained, incremental production costs increase at a constant rate.

Accepted Answer

A) True 
 B)False

Question 6

Two firms of the same size may have significantly different operating costs because one has progressed farther down the learning curve.

Accepted Answer

A) True 
 B)False

Question 7

Mercedes Benz is the world's leading manufacturer of premium passenger cars because it has a reputation for all but which of the following?

Accepted Answer

A)   producing cars at the fastest rate in the industry
B)   innovative engineering
C)   styling that appeals to buyers who will pay premium prices
D)   effective safety features

Question 8

Focus positions may fail because of all of the following except ________.

Accepted Answer

A)   trying to meet the needs of too many customers
B)   straddling inconsistent positions
C)   being out-focused by competitors
D)   attempting to grow beyond the niche

Question 9

Name the four positions included in Porter's concept of generic strategies.

Accepted Answer

The four positions are low cos...

Question 10

Different production technologies result in similar costs.

Accepted Answer

A) True 
 B)False

Question 11

The levers that are necessary for implementing a firm's strategy include all but having ________.

Accepted Answer

A)   appropriate systems and processes
B)   sufficient managerial resources
C)   five- and ten-year business forecasts
D)   incentives that are congruent with objectives

Question 12

The Economic Logic vs Scope of Arena model identifies four generic strategic positions that result from a firm's starting strategic position. Which is not one of these four positions?

Accepted Answer

A)   broad differentiation
B)   focused cost leadership
C)   focused differentiation
D)   narrow differentiation

Question 13

Firms that produce differentiated products usually have difficulties managing costs.

Accepted Answer

A) True 
 B)False

Question 14

It is necessary to have both financial and human capital resources to successfully pull off a firm's strategy.

Accepted Answer

A) True 
 B)False

Question 15

Learning and economies of scope are both drivers of the differentiation strategic position.

Accepted Answer

A) True 
 B)False  False

Question 16

Focused differentiation targets unique products to relatively small segments.

Accepted Answer

A) True 
 B)False

Question 17

Variable costs are the costs of ________.

Accepted Answer

A)   raw materials and labor
B)   the last unit of production
C)   rent and equipment
D)   all expenses incurred by the firm

Question 18

Differentiation may fail because of all of the following except ________.

Accepted Answer

A)   underfulfillment
B)   overfulfillment
C)   ease of imitation
D)   unusually high quality

Question 19

Pacific Cycle markets a product for virtually every market segment, offers a range of quality in its product mix, and keeps costs down by ________.

Accepted Answer

A)   eliminating middle management in the firm
B)   using American labor from a low-wage state
C)   outsourcing all of its production to Asia
D)   taking orders for sample merchandise

Question 20

As industries enter periods of rapid growth, early movers are virtually guaranteed rapid growth.

Accepted Answer

A) True 
 B)False

Exam 5: Creating Business Strategies

If a firm's strategy can be implemented, then it must be aligned with the appropriate implementation levers.

Correct Answer
verified

When a company is acquired by another, but still operates independently, it operates as a(n) ________.

Correct Answer
verified
A

A successful differentiation position requires that a firm satisfy all but which of the following criteria?

Correct Answer
verified

According to Porter, what are the two key factors affecting the economic logic of competitive advantage?

As production experience is gained, incremental production costs increase at a constant rate.

Correct Answer
verified

Two firms of the same size may have significantly different operating costs because one has progressed farther down the learning curve.

Correct Answer
verified

Mercedes Benz is the world's leading manufacturer of premium passenger cars because it has a reputation for all but which of the following?

Correct Answer
verified

Focus positions may fail because of all of the following except ________.

Correct Answer
verified

Name the four positions included in Porter's concept of generic strategies.

Correct Answer
verified
The four positions are low cos...
View Answer

Different production technologies result in similar costs.

Correct Answer
verified

The levers that are necessary for implementing a firm's strategy include all but having ________.

Correct Answer
verified

The Economic Logic vs Scope of Arena model identifies four generic strategic positions that result from a firm's starting strategic position. Which is not one of these four positions?

Correct Answer
verified

Firms that produce differentiated products usually have difficulties managing costs.

Correct Answer
verified

It is necessary to have both financial and human capital resources to successfully pull off a firm's strategy.

Correct Answer
verified

Learning and economies of scope are both drivers of the differentiation strategic position.

Correct Answer
verified
False

Focused differentiation targets unique products to relatively small segments.

Correct Answer
verified

Variable costs are the costs of ________.

Correct Answer
verified

Differentiation may fail because of all of the following except ________.

Correct Answer
verified

Pacific Cycle markets a product for virtually every market segment, offers a range of quality in its product mix, and keeps costs down by ________.

Correct Answer
verified

As industries enter periods of rapid growth, early movers are virtually guaranteed rapid growth.

Correct Answer
verified

Exam 5: Creating Business Strategies

If a firm's strategy can be implemented, then it must be aligned with the appropriate implementation levers.

Correct AnswerverifiedShow Answer

When a company is acquired by another, but still operates independently, it operates as a(n) ________.

Correct AnswerverifiedA

A successful differentiation position requires that a firm satisfy all but which of the following criteria?

Correct AnswerverifiedShow Answer

According to Porter, what are the two key factors affecting the economic logic of competitive advantage?

As production experience is gained, incremental production costs increase at a constant rate.

Correct AnswerverifiedShow Answer

Two firms of the same size may have significantly different operating costs because one has progressed farther down the learning curve.

Correct AnswerverifiedShow Answer

Mercedes Benz is the world's leading manufacturer of premium passenger cars because it has a reputation for all but which of the following?

Correct AnswerverifiedShow Answer

Focus positions may fail because of all of the following except ________.

Correct AnswerverifiedShow Answer

Name the four positions included in Porter's concept of generic strategies.

Correct AnswerverifiedThe four positions are low cos...View AnswerShow Answer

Different production technologies result in similar costs.

Correct AnswerverifiedShow Answer

The levers that are necessary for implementing a firm's strategy include all but having ________.

Correct AnswerverifiedShow Answer

The Economic Logic vs Scope of Arena model identifies four generic strategic positions that result from a firm's starting strategic position. Which is not one of these four positions?

Correct AnswerverifiedShow Answer

Firms that produce differentiated products usually have difficulties managing costs.

Correct AnswerverifiedShow Answer

It is necessary to have both financial and human capital resources to successfully pull off a firm's strategy.

Correct AnswerverifiedShow Answer

Learning and economies of scope are both drivers of the differentiation strategic position.

Correct AnswerverifiedFalse

Focused differentiation targets unique products to relatively small segments.

Correct AnswerverifiedShow Answer

Variable costs are the costs of ________.

Correct AnswerverifiedShow Answer

Differentiation may fail because of all of the following except ________.

Correct AnswerverifiedShow Answer

Pacific Cycle markets a product for virtually every market segment, offers a range of quality in its product mix, and keeps costs down by ________.

Correct AnswerverifiedShow Answer

As industries enter periods of rapid growth, early movers are virtually guaranteed rapid growth.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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A

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
The four positions are low cos...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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False

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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