Question 1

As an industry becomes hypercompetitive,firms initially respond by

Accepted Answer

A)   raising entry barriers.
B)   moving into untapped markets.
C)   attacking the strongholds of other firms.
D)   competing on cost and quality.
E)   working their way to a situation of perfect competition.F) A) and E)
G) B) and D)

Question 2

The goal of strategy is to find a(n) ________ that is so well suited to the firm's competitive advantages that other organizations are not likely to challenge or dislodge it.

Accepted Answer

A)   strategic fit.
B)   propitious niche.
C)   common thread.
D)   business screen.
E)   implicit strategy.F) A) and E)
G) A) and D)

Question 3

Discuss competitive strategy differences between a fragmented and a consolidated industry.

Accepted Answer

In a fragmented industry,there are many ...

Question 4

Morgan Motor Car Company manufactures classic British sports cars.Which of Porter's strategies is this company following?

Accepted Answer

A)   differentiation focus
B)   cost leadership
C)   stuck in the middle
D)   differentiation
E)   cost focusF) C) and D)
G) A) and B)

Question 5

Competitive scope is

Accepted Answer

A)   the breadth of the company's target market.
B)   a business strategy.
C)   the common thread found in the firm's mission statement.
D)   the foundation of the choice between cost leadership and differentiation strategies.
E)   an element of the marketing mix.F) A) and E)
G) C) and D)

Question 6

Business strategy focuses on

Accepted Answer

A)   ensuring that the company maintains the existing market share that it has historically enjoyed.
B)   improving the competitive position of a corporation's products or services within the industry or market segment served.
C)   providing adequate shareholders' return on investment.
D)   preventing the competition from gaining a competitive edge by undermining their marketing plan.
E)   recovering the competitive lead by using all available resources that the company can provide.F) B) and C)
G) None of the above

Question 7

According to Porter,the term that applies to the breadth of a company's or business unit's target market is called

Accepted Answer

A)   competitive scope.
B)   differentiation.
C)   focus.
D)   diversification.
E)   cost leadership.F) B) and E)
G) B) and D)

Question 8

A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented industry can be referred to as a

Accepted Answer

A)   merger.
B)   strategic rollup.
C)   cost strategy.
D)   differentiation strategy.
E)   focus strategy.F) B) and E)
G) A) and B)

Question 9

Cost leadership is the ability of a company or business unit to design,produce,and market a comparable product more efficiently than its competitors.

Accepted Answer

A) True 
 B)False

Question 10

Tight cost control is an organizational requirement for a cost leadership strategy.

Accepted Answer

A) True 
 B)False

Question 11

The text authors note that the essence of strategy is

Accepted Answer

A)   opportunity divided by capacity.
B)   strength divided by opportunity.
C)   threat divided by capacity.
D)   threat divided by opportunity.
E)   opportunity divided by threat.F) A) and B)
G) D) and E)

Question 12

Populating a SWOT chart,by itself,is just the start of a strategic analysis.

Accepted Answer

A) True 
 B)False

Question 13

Jet airplane manufacturers often enter into strategic alliances to

Accepted Answer

A)   obtain new capabilities.
B)   obtain access to specific markets.
C)   reduce financial risk.
D)   reduce political risk.
E)   preserve autonomy.F) C) and D)
G) None of the above

Question 14

According to Porter,a business unit in a competitive marketplace with no generic competitive strategy is

Accepted Answer

A)   achieving synergy.
B)   practicing innovative leadership.
C)   stuck in the middle.
D)   not goal directed.
E)   last in line.F) B) and D)
G) A) and C)

Question 15

Walt Disney Company competes successfully in the entertainment industry using which of Porter's competitive strategies?

Accepted Answer

A)   differentiation focus
B)   stuck in the middle
C)   cost leadership
D)   differentiation
E)   cost focusF) A) and E)
G) C) and D)

Question 16

Which strategy raises the questions of whether to compete on the basis of lower cost or differentiation and whether to compete for the biggest market or a niche market?

Accepted Answer

A)   business
B)   corporate
C)   competitive
D)   functional
E)   focusF) C) and D)
G) A) and D)

Question 17

An example of a company that was "stuck in the middle" was K-Mart as the company tried to imitate both Walmart's low-cost strategy and Target's differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not one of the risks of a cost leadership strategy?

Accepted Answer

A)   The technology that the organization has been using changes.
B)   Pricing for higher quality that is too far above the price of the competition.
C)   Competitors can achieve viable imitations.
D)   Other bases for cost leadership erode.
E)   Proximity in differentiation is lost.F) C) and D)
G) B) and E)

Question 19

Research suggests that a differentiation strategy is more likely to generate higher profits than a lower cost strategy because differentiation creates

Accepted Answer

A)   a better entry barrier.
B)   a better exit barrier.
C)   a better niche market.
D)   a more sustainable competitive advantage.
E)   no clear long-term strategy.F) All of the above
G) B) and C)

Question 20

The two general types of cooperative strategies are collusion and strategic alliances.

Accepted Answer

A) True 
 B)False

Exam 6: Strategy Formulation: Business Strategy

As an industry becomes hypercompetitive,firms initially respond by

Correct AnswerverifiedShow Answer

An example of a company that was "stuck in the middle" was K-Mart as the company tried to imitate both Walmart's low-cost strategy and Target's differentiation strategy.

Correct AnswerverifiedShow Answer

Competitive scope is

Correct AnswerverifiedShow Answer

Tight cost control is an organizational requirement for a cost leadership strategy.

Correct AnswerverifiedShow Answer

Morgan Motor Car Company manufactures classic British sports cars.Which of Porter's strategies is this company following?

Correct AnswerverifiedShow Answer

The two general types of cooperative strategies are collusion and strategic alliances.

Correct AnswerverifiedShow Answer

Walt Disney Company competes successfully in the entertainment industry using which of Porter's competitive strategies?

Correct AnswerverifiedShow Answer

The goal of strategy is to find a(n) ________ that is so well suited to the firm's competitive advantages that other organizations are not likely to challenge or dislodge it.

Correct AnswerverifiedShow Answer

A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented industry can be referred to as a

Correct AnswerverifiedShow Answer

Jet airplane manufacturers often enter into strategic alliances to

Correct AnswerverifiedShow Answer

According to Porter,a business unit in a competitive marketplace with no generic competitive strategy is

Correct AnswerverifiedShow Answer

Populating a SWOT chart,by itself,is just the start of a strategic analysis.

Correct AnswerverifiedShow Answer

Business strategy focuses on

Correct AnswerverifiedShow Answer

The text authors note that the essence of strategy is

Correct AnswerverifiedShow Answer

Research suggests that a differentiation strategy is more likely to generate higher profits than a lower cost strategy because differentiation creates

Correct AnswerverifiedShow Answer

According to Porter,the term that applies to the breadth of a company's or business unit's target market is called

Correct AnswerverifiedShow Answer

Which strategy raises the questions of whether to compete on the basis of lower cost or differentiation and whether to compete for the biggest market or a niche market?

Correct AnswerverifiedShow Answer

Which of the following is not one of the risks of a cost leadership strategy?

Correct AnswerverifiedShow Answer

Cost leadership is the ability of a company or business unit to design,produce,and market a comparable product more efficiently than its competitors.

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Discuss competitive strategy differences between a fragmented and a consolidated industry.

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In a fragmented industry,there are many ...
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