Business-level Strategy: Creating Andsustaining Competitive Advantages

This question bank verified by Studydeets

Questions Bank

Strategic Management: Creating Competitiveadvantages
Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages
Assessing the Internal Environmentof the Firm
Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources
Business-Level Strategy: Creating Andsustaining Competitive Advantages
Corporate-Level Strategy: Creatingvalue Through Diversification
International Strategy: Creating Valuein Global Markets
Entrepreneurial Strategy and Competitive Dynamics
Strategic Control and Corporategovernance
Creating Effective Organizational Designs
Strategic Leadership: Creating a Learning Organization and an Ethical Organization
Managing Innovation and Fosteringcorporate Entrepreneurship

All Questions

Question 1

Free

True/False

The three generic strategies presented by Michael Porter can be shown on two dimensions: competitive advantage and product life cycle.

Choose correct answer/s

True

False

Check answer

Question 2

Free

True/False

The three generic strategies that Michael Porter believes a firm can use to overcome the five forces and achieve competitive advantage include overall price leadership.

Choose correct answer/s

True

False

Check answer

Question 3

Free

True/False

Concentrating solely on one form of competitive advantage generally leads to the highest possible level of profitability.

Choose correct answer/s

True

False

Check answer

Question 4

Free

True/False

A firm striving for cost leadership will typically spend relatively more on product related R&D than on process related R&D.

Choose correct answer/s

True

False

Check answer

Question 5

Free

True/False

To generate above average returns,a firm following an overall cost leadership position should NOT be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

Choose correct answer/s

True

False

Check answer

Question 6

True/False

The experience curve concept suggests that production costs tend to decrease as production increases.

Choose correct answer/s

True

False

To unlock the question

Question 7

True/False

A firm can attain an overall cost leadership position by increasing the management layers in order to reduce overhead costs.

Choose correct answer/s

True

False

To unlock the question

Question 8

True/False

A firm can attain an overall cost leadership position by using automated technology to reduce scrappage rates.

Choose correct answer/s

True

False

To unlock the question

Question 9

True/False

A firm can attain an overall cost leadership position by purchasing media in large blocks and maximizing sales force utilization through territory management.

Choose correct answer/s

True

False

To unlock the question

Question 10

True/False

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

Choose correct answer/s

True

False

To unlock the question

Question 11

True/False

Firms that compete on overall cost leadership are vulnerable if there is an increase in the cost of the inputs on which the advantage is based.

Choose correct answer/s

True

False

To unlock the question

Question 12

True/False

Too much focus on one or a few value-chain activities can be a pitfall of the overall cost leadership strategy.

Choose correct answer/s

True

False

To unlock the question

Question 13

True/False

A cost leadership strategy can be at risk of obsolescence of the basis of the cost advantage.

Choose correct answer/s

True

False

To unlock the question

Question 14

True/False

A cost leadership strategy is not susceptible to the risk of reduced flexibility.

Choose correct answer/s

True

False

To unlock the question

Question 15

True/False

The example of Lexus automobiles in the text points out that a firm can strengthen its differentiation strategy by achieving integration at multiple points along the value chain.
D. Power customer satisfaction ratings. It found that quality perceptions (design, engineering, and manufacturing) can be strongly influenced by downstream activities in the value chain (marketing and sales, service).

Choose correct answer/s

True

False

To unlock the question

Question 16

True/False

A successful differentiation strategy lowers entry barriers because of customer loyalty and the ability of the firm to provide uniqueness in its products and services.

Choose correct answer/s

True

False

To unlock the question

Question 17

True/False

A successful differentiation strategy increases rivalry since buyers become more price-sensitive.

Choose correct answer/s

True

False

To unlock the question

Question 18

True/False

If a firm has a successful differentiation strategy,it is necessary to attain parity on cost.

Choose correct answer/s

True

False

To unlock the question

Question 19

True/False

One potential pitfall of a differentiation strategy is that identification of the brand in the marketplace may become diluted through excessive product line extensions.

Choose correct answer/s

True

False

To unlock the question

Question 20

True/False

Focus,by itself,often constitutes a competitive advantage.

Choose correct answer/s

True

False

To unlock the question