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Question 1
Free
Multiple Choice

A _____ primarily details the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.

Choose correct answer/s
A

business-level strategy

B

code of ethics

C

mission statement

D

functional-level strategy

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Question 2
Free
Multiple Choice

Which of the following is a firm effect that has an impact on the competitive advantage of a firm?

Choose correct answer/s
A

the exit barriers within the industry in which the firm operates

B

the number of companies operating in the industry in which the firm operates

C

the intensity of rivalry among existing companies in the firm's chosen industry

D

the value and the cost position of the firm relative to its competitors

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Question 3
Free
Multiple Choice

A firm's business strategy will lead to a competitive advantage if it allows the firm to

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A

execute the same activities performed by the rivals in a similar manner.

B

reduce the value gap.

C

perform different activities than its rivals.

D

position itself below the productivity frontier.

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Question 4
Free
Multiple Choice

When a firm makes choices between a cost or value position to achieve competitive advantage,it is primarily involved in

Choose correct answer/s
A

collective bargaining.

B

strategic trade-offs.

C

arbitration.

D

mediation.

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Question 5
Free
Multiple Choice

Firms pursuing a differentiation strategy primarily seek to

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A

keep their cost structures lower than that of the cost leader.

B

reduce the value gap to gain a competitive advantage.

C

provide products that are a direct imitation of the competitors' products.

D

create higher customer perceived value than the value that competitors create.

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Question 6
Multiple Choice

Home Smart Inc.is a chain of supermarkets that sells its products at higher prices than its competitors.Yet,the supermarket chain has a large customer base due to its wide product portfolio and superior customer service.Which of the following generic business strategies has Home Smart adopted in this scenario?

Choose correct answer/s
A
cost-leadership
B
differentiation
C
market penetration
D
product diversification
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Question 7
Multiple Choice

Bargain Styles Inc.is an apparel company that caters to the highly price-conscious customers.Through its simple apparel designs,acceptable quality levels,and minimal customer service,the company has been able to sell its merchandise at the lowest prices in the industry.Which of the following generic business strategies is Bargain Styles applying?

Choose correct answer/s
A
cost-leadership
B
differentiation
C
niche marketing
D
product diversification
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Question 8
Multiple Choice

Why are differentiation and cost-leadership strategies referred to as generic business strategies?

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A
They can be simultaneously pursued by a firm without any trade-offs.
B
They can be used by any organization independent of industry context.
C
They require similar strategic positions in order to increase a firm's chances to gain competitive advantage.
D
They can be applied only by businesses, which have a competitive advantage.
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Question 9
Multiple Choice

True Empire Autos Inc.is an automobile company known for its luxury cars and follows a differentiation strategy.In this scenario,True Empire Autos should ideally compare its strategic position with a(n)

Choose correct answer/s
A
automobile company that sells pre-owned cars.
B
automobile company that sells high-end, premium cars.
C
automobile company that manufactures economy cars.
D
pen manufacturing company that follows a differentiation strategy.
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Question 10
Multiple Choice

Wear Crush Inc.is an apparel company known for its affordable clothes that follows a cost-leadership strategy.In this scenario,Wear Crush should ideally compare its strategic position with

Choose correct answer/s
A
a company that sells wristwatches at affordable prices.
B
a luxury apparel company that sells designer clothes.
C
an apparel company popular among price-conscious customers.
D
an online company that sells customized pet clothing.
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Question 11
Multiple Choice

In a focused cost-leadership strategy,a firm

Choose correct answer/s
A
caters to the segment of the market that is least cost-sensitive.
B
provides high-priced products for many different segments of the mass market.
C
delivers low-cost products and services to a specific, narrow part of the market.
D
focuses on reducing the economic value created to drive down costs.
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Question 12
Multiple Choice

Organic Eats is a restaurant that caters to the needs of a small percentage of highly health-conscious consumers.It has an all-organic,vegan menu.Since there are very few restaurants that offer the same unique services,customers are willing to pay a premium price for its products and services.In this scenario,Organic Eats is following a

Choose correct answer/s
A
product diversification strategy.
B
liquidation strategy.
C
mass market strategy.
D
focused differentiation strategy.
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Question 13
Multiple Choice

A company that uses a differentiation strategy can achieve a competitive advantage as long as its

Choose correct answer/s
A
economic value created is greater than that of its competitors.
B
value gap is lower than that of its competitors.
C
strategic position is below the productivity frontier.
D
products and services create a lower consumer surplus than that of its competitors.
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Question 14
Multiple Choice

Both Viten Electronics Inc.and JL Electronics Inc.incur a cost of $400 to manufacture a LED television.However,the economic value created by JL Electronics is more than that created by Viten Electronics.What does this indicate?

Choose correct answer/s
A
Viten Electronics has a competitive advantage over JL Electronics.
B
Both Viten Electronics and JL Electronics have achieved competitive parity.
C
JL Electronics can charge a premium price on its televisions.
D
Viten Electronics has created a higher value gap than JL Electronics.
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Question 15
Multiple Choice

A firm pursuing a differentiation strategy as opposed to a low-cost strategy will

Choose correct answer/s
A
focus its research and development on product technologies to add uniqueness.
B
concentrate on leveraging its economies of scale through process technologies.
C
build an organization structure that relies on strict budget controls.
D
create a lower economic value as compared to its competitors.
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Question 16
Multiple Choice

When a differentiator charges a similar price as its competitors in the same strategic group but offers more perceived value,it

Choose correct answer/s
A
loses its competitive advantage.
B
gains market share from other firms.
C
lowers the economic value created.
D
results in diseconomies of scale.
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Question 17
Multiple Choice

Both Blue Horizons Electronics Inc.and CLR Inc.have achieved cost parity in the television market.To gain and sustain a competitive advantage against CLR,Blue Horizons Electronics should

Choose correct answer/s
A
achieve differentiation parity with CLR.
B
keep its value gap lower than that of CLR.
C
create greater perceived economic value than CLR.
D
increase its cost of production to more than that of CLR.
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Question 18
Multiple Choice

Which of the following will hamper a differentiator's ability to achieve a competitive advantage?

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A
lower production costs
B
premium prices
C
lower value gap
D
customized goods
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Question 19
Multiple Choice

Whole Foods differentiates itself from competitors by offering top-quality foods obtained through sustainable agriculture.This business strategy implies that Whole Foods focuses on

Choose correct answer/s
A
decreasing the existing value gap by providing luxury goods to customers.
B
maintaining a less steeper learning curve as compared to its competitors.
C
increasing the perceived value created for customers, which allows it to charge a premium price.
D
lowering its costs compared to its competitors,' while offering adequate value for its products and services.
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Question 20
Multiple Choice

Which of the following is more of a value driver than a cost driver?

Choose correct answer/s
A
superior customer service
B
economies of scale
C
learning-curve effects
D
experience-curve effects
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