In each blank, try to type in the
word that is missing. If you've
typed in the correct word, the
blank will turn green.
If your not sure what answer should be entered, press the space bar and the next missing letter will be displayed. When you are all done, you should look back over all your answers and review the ones in red. These ones in red are the ones which you needed help on. Question: Business-level strategies detail and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in:
a. the selection of industries where firm competes
b. specific product markets.Answer: b. product markets. Question: A firm's core strategy is its ____ strategy.
a. corporate
b. business
c. pricing
d. international
Answer: b. Question: When selecting a business level strategy, the firm must determine all of the following EXCEPT:
a. who is the customer?
b. what are the customers' needs?
c. why should these customers' needs be ?
Answer: c. why these customers' needs be satisfied? Question: The three dimensions of a firm's relationships with customers include all the following EXCEPT:
a. exclusiveness.
b. .
c. richness.
d. reach.
Answer: a. . Question: Which of the following is TRUE?
a. As customer loyalty increases, customers are more sensitive to price increases.
b. loyalty has a positive relationship with firm profitability.
Answer: b. Customer loyalty has a positive relationship with firm . Question: The ________dimension of relationships with customers is particularly important for social networking sites such as Facebook and Twitter.
a. reach
b. richness
c. affiliation
d. social
Answer: a. Question: Amazon has built capabilities around Internet technology and e-commerce to facilitate information exchanges with its customers in a cost effective manner. This represents which of the three service
a. b. Richness
c. AffiliationAnswer: b. Question: Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances:
a. the of the company toward the customer.
b. affiliation with the customer.Answer: b. affiliation with the . Question: Before the firm decides what products to offer and what benefits and features they will have, the firm must all the following questions EXCEPT:
a. who the firm should serve.
b. when the customer's needs should be satisfied.
Answer: b. when the customer's needs should be . Question: In the food products business, food-product needs of owners of companion animals pets (e.g., dogs and cats) differ from the needs for food and health-related products of Answer: a. Who: Determining the to Serve Question: Starbuck's determined that all of the customer needs were important EXCEPT:
a. low price.
b. the experience associated with drinking coffee, not just the coffee.Answer: a. low . Question: Hyundai allows customers to return their cars if they lose their job within 12 months of purchase. Which of the following aspects of managing custom
a. Who: the Customers to Serve
b. What: Determining Which Customer Needs to SatisfyAnswer: b. What: Which Customer Needs to Satisfy Question: An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota
a. The decorator does not understand
b. The decorator has no core
c. The decorator should choose
d. The decorator is highly affiliated .
Answer: a. The does not understand that customer needs are neither right nor wrong, good nor bad. Question: In order to meet and exceed customer's expectations, firms must:
a. continuously improve, innovate, and upgrade their core competencies.
b. defend their established core competenciAnswer: a. improve, innovate, and upgrade their core competencies. Question: Business-level strategies are specifically with:
a. creating differences between the firm's position and its competitors.
b. selecting the industries in which the firm will compete.
c. how functional areas will be organized witAnswer: a. creating differences between the firm's and its competitors. Question: An is investigating starting a company that provides tax advice to small companies:
a. analyze the reach, richness, and affiliation the company must have with its customers.
b. provide tax advice either in a Answer: b. provide tax either in a different manner or provide a different kind of tax service than competitors. Question: Which of the following are central to value-creating strategies and thereby satisfying customers' needs?
a. Firm resources
b. Capabilities
c. Core competencies
d. None of the the aboveAnswer: c. competencies Question: The analysis of the activity map of a successful company such as Southwest Airlines emphasizes how:
a. the organizational culture
b. understanding the profit abilit
c. it is hard for rivals to match
d. the and support activities
Answer: c. it is hard for rivals to match a configuration of integrated than to imitate a single activity. Question: By examining the ____ of Southwest Airlines, one can identify the strategic themes around which it has developed its business strategy.
a. activity map
b. profit sharing
c. value diagram
d. five forces modelAnswer: a. map Question: If Southwest Airlines employees lost their high and commitment to the company:
a. the airline could continue
b. replacement employees could be
c. there would be no impact on
d. Southwest would have lost one of i
Answer: d. Southwest would have lost one of its competitive advantages, and its would be threatened.c Question: Strategic fit among many activities (in an map) is fundamental to:
a. the development of core competencies for a firm.
b. the breadth of competitive scope for a firm.
c. sustainability of a firm's competitive advantage.Answer: c. sustainability of a firm's advantage.
Question: All of the are considered generic business-level strategies EXCEPT:
a. product diversification.
b. cost leadership.
c. focused differentiation.
d. integrated cost leadership/differentiation.
Answer: a. diversification. Question: A company using a narrow target market in its business strategy is:
a. following a cost leadership business strategy.
b. focusing on a broad of geographic markets.
c. limiting the group of customer segments served.
Answer: c. limiting the of customer segments served. Question: As the television industry has changed in the last few decades from just three major networks to a multiplicity of ,
a. broader target market
b. narrower target market
c. increased use of primary activities to capture value
Answer: b. narrower market Question: The effectiveness of any of the generic business-level strategies is contingent upon:
a. customer and competitors' strategies.
b. the match between the opportunities an
c. the trends in the general consumer baseAnswer: b. the between the opportunities an Question: A cost leadership strategy provides goods or services with features that are:
a. .
b. unique.
c. substandard.
d. mediocre.Answer: a. . Question: A cost leadership strategy targets the industry's ____ customers.
a. most typical
b. poorest
c. least educated
d. most frugal
Answer: a. most Question: Durable Ceramics, Inc., provides inexpensive tile to builders of institutional buildings such as
a. both Durable and Cost-Less
b. Durable will be unable to
c. both Cost-Less and Durable will
d. Cost-Less will Answer: d. Cost-Less will go out of business, and Durable will gain power over its customers. Question: Research suggests that having a competitive advantage in ____ creates more value in the cost leadership strategy than it does in the differentiation strategy.
a. marketing and sales
b. technology development
c. logisticsAnswer: . Question: A river barge can offer cheaper, although slower, per pound transportation of product
a. the integrated cost leadership/differentiation strategy.
b. either of the focus strategies.
c. the cost leadership strategy.
Answer:
c. the cost leadership . Question: Walmart went against business-level and made changes to attract upscale customers.
a. It strengthened Walmart's position against rivals such as Dollar Stores and Amazo
b. It made Walmart vulnerable to Dollar Store and Amazon.
Answer: b. It made vulnerable to Dollar Store and Amazon Question: Walmart's same store sales have been declining and those of rivals Family Dollar and have been increasing.
a. Walmart changed its strategy to focused differentiation.
b. Walmart changed its strategy to attract more upscale customer
Answer: d. Walmart changed its strategy to more upscale customer Question: A company pursuing the differentiation or focused differentiation strategy would tend to:
a. build economies of scale and efficient operations.
b. develop and .
c. develop flexible systems
d. have relationships with suppliers
Answer: c. flexible systems that allow rapid response to customers' changing needs. Question: When the of supplies increase in an industry, the low-cost leader:
a. may continue competing with rivals
b. will lose customers as a result of price increases.
c. will be unable to absorb
d. may be the only firm
Answer: d. may be the only firm able to pay the higher prices and continue to earn average or above-average . Question: Ever-improving levels of efficiency profit margins for a cost-leader. This effects which of the five forces of industry structure most directly?
a. Potential entrants
b. Substitutes
c. Buyer power
d. Supplier powerAnswer: a. Potential Question: The typical risks of a cost leadership strategy include:
a. the inability to balance high differentiation and low price.
b. production and distribution c. excessive differentiation to
d. loss of customer loyalty.Answer: b. production and distribution processes becoming . Question: When a firm is able to produce nonstandardized (that is, distinctive)
a. a differentiation strategy.
b. a cost leadership .
c. an integrated cost leadership/differentiation strategy.
d. a single-product strategy.
Answer: a. a differentiation . Question: A firm successfully implementing a differentiation strategy would expect:
a. customers to be sensitive to price increases.
b. to charge premium prices.
c. customers to perceive the as standard.
Answer: b. to premium prices. Question: The products or services that are from others, have qualities that are:
a. perceived by the customer to add value that they will pay a premium to purchase.
b. valued by the typical industry customer.
Answer: a. perceived by the to add value that they will pay a premium to purchase. Question: . Blind taste-tests have shown that the taste of premium-priced vodkas and inexpensive vodkas are indistinguishable even to drinkers of vodka.
a. the perception of perceived prestige
b. the importance of high-quality raw materials Answer: a. the perception of perceived prestige and status as a means of a product. Question: All of the following are examples of differentiated products EXCEPT:
a. Mont Blanc pens.
b. Caterpillar's heavy-duty earth-moving .
c. Great Value brand at Walmart.
d. Prada fashion.
Answer: c. Great Value brand at . Question: The use of a differentiation strategy would be expected to be LEAST effective in which of the markets?
a. Commodity goods
b. Mmotion pictures
c. Popular music
d. Writing instruments
Answer: a. goods Question: All of the following are ways that a good or service can be differentiated EXCEPT:
a. responsive customer service.
b. perceived prestige and status.
c. economies of scale and efficient .
d. engineering design and performance.
Answer: c. economies of scale and efficient . Question: The differentiation strategy can be effective in controlling the power of rivalry with existing compe
a. customers will seek out the -cost product.
b. customers of nondifferentiated products
c. customers are loyal to brands
Answer: c. customers are loyal to brands that are in meaningful ways. Question: Wholesome Pet Food has specialized for 20 years
a. Wholesome will probably be able
b. Companies pursuing Wholesome's business strategy are especially vulnerable to this risk.
Answer: a. Wholesome will probably be able to pass the cost on to its because they are less sensitive to price increases than the average buyer. Question: . Which of the following is NOT a value-creating activity associated with the differentiation strategy?
a. policies to ensure efficient
b. Providing accurate and timely delivery of goods to customers.
Answer: . Developing policies to ensure efficient hiring and retention to keep costs low and training to ensure high employee efficiency. Question: A differentiation strategy can be effective in the power of substitutes in an industry because
b. substitute products are lower quality.
c. a differentiating firm can always lower prices.
d. customers develop brand loyalty.
Answer: d. customers brand loyalty.
Question: Recently, the only type of car available for Anthony to rent on a business trip was a compact, fuel-efficient Japanese import.
a. a 's products
b. a product imitation
c. experience can narrow
Answer: c. experience can Question: A manufacturer of jewelry imitates the style of a popular and expensive brand using manufactured stones rather tha. customer sensitive to differentials
b. threat by the cost leader
c. customer experience
d. counterfeiting
Answer: d. Question: The typical risks of a differentiation strategy do NOT include which of the following?
a. Customers may find
b. Customers' experience
c. Counterfeit goods are
d. of raw materials
Answer: d. of raw materials Question: When implementing a focus strategy, the firm seeks to:
b. move into the global market.
c. target the typical customer in an industry.
d. the specialized needs of a market segment.Answer: d. serve the specialized needs of a market . Question: The focused differentiation strategy differs from the differentiation strategy in that:
a. the focused differentiators have a broader competitive scope.
b. the value-creating activities
c. differentiators target aAnswer: c. differentiators target a narrower customer market. Question: Chico's is a clothing retailer that targets middle-aged women who want stylish and a. focused differentiation based on a buyer group
b. focused differentiation based on a product line segment
c. generic differentiation
Answer: a. focused differentiation on a buyer group Question: The new generation of lunch serving high-end fare in cities such as New York, San Francisco, and Los Angeles share which of the following a business strategies?
a. Cost leadership
b. Focused differentiation
Answer: b. Focused differentiation Question: The Monteleone Company pays large fees to a highly recognizable, prestigious individual
a. focused cost leadership strategy.
b. differentiation strategy.
Answer: b. focused strategy. Question: Focus strategies are:
a. sheltered from the risks
b. able to avoid global risk
c. faced with additional types of risks than are industry-wide strategies.
d. more subject to failure than industry-wide .Answer: c. faced with additional of risks than are industry-wide strategies. Question: New Balance Athletic Shoes target Baby Boomers' needs for well-fitting shoes. The company is unique in that it offers a very broad range of shoe .
a. Baby Boomers may find that
b. a competitor may be able Answer: b. a competitor may be able to better use flexible manufacturing systems to make with an individualized fit. Question: Suppose another firm found a way to offer IKEA's customers (young buyers interested in stylish furniture at low cost)
a. An industry-wide competitor that the market segment served by IKEA is worth entering.
b. Focusing on a more narrowlyAnswer: b. Focusing on a more narrowly defined and "outfocusing" the focuser.
additional sources Question: Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices.
a. Cost leadership
b. Differentiation
c. Integrated cost leadership/differentiation
d. in the middle
Answer: c. cost leadership/differentiation Question: Firms use the cost leadership/differentiation strategy because
a. other firms have established unassailable market dominance with the other four strategies.
b. global markets allow
c. most consumers want to pay a
Answer: c. most consumers want to pay a low for products with somewhat highly differentiated features Question: The integration of a cost and a differentiation strategy:
a. is challenging because
b. forces a firm to adapt more slowly to changes in its environment.
Answer: a. is challenging because it increases the number of -chain activities and support functions in which the firm must become competent. Question: Target's brand promise "Expect More. Pay Less" and appeal to higher-income,
a. cost leadership
b. differentiatio
c. focused differentiation
d. cost leadership/differentiation
Answer: d. integrated cost /differentiation Question: J.C. Penney attempted the strategy ______ . But it couldn't out ______ Walmart, nor could it ______ Macy's and Target.
a. of integrated cost leadership; price; compete with
b. of focused differentiation; cost; differentiate betweenAnswer: a. of cost leadership; price; compete with Question: The benefit of a flexible manufacturing system is that:
a. the lot size to manufacture a firm's product efficiently is reduced
b. the necessary skill levels of workers are reduced, allowing the firm to reduce costs.
Answer: a. the lot size needed to manufacture a firm's product efficiently is Question: A flexible manufacturing is:
a. based on the use of temporary and part-time employees as well as outsourcing.
b. a computer-controlled process
Answer: b. a computer-controlled that is used to produce a variety of products in moderate, flexible quantities with minimal human intervention. Question: A nationwide chain of pet stores wishes to identify the tradeoffs that its customers are willing to make low-cost products
a. information networks.
b. a flexible manufacturing system.
c. differentiation development planning.
Answer: a. networks. Question: By linking companies with their suppliers, distributors, and customers, ____ provide a company with flexibility.
a. flexible manufacturing systems
b. information networks
c. Total Quality Management systems
d. capabilities
Answer: b. information Question: TQM is most helpful to firms following the ____ business strategy.
a. cost leadership
b. integrated cost leadership/differentiation
c. focused cost leadership
d. focused differentiationAnswer: b. cost leadership/differentiation Question: The term "stuck in the middle":
a. means adhering to a middle of the road strategy in the face of outcomes.
d. means that the firm's cost structure i
Answer: d. means that the firm's cost structure is not low enough to allow it to attractively price its products and that its products are not sufficiently differentiated to create value for its customer. Question: All of the following describe strategies EXCEPT:
a. they are purposeful.
b. they cannibalize the old strategy.
c. they precede the of actions to which they apply.Answer: b. cannibalize the old strategy. Question: More choices and easily accessible information about the functionality of firms' products are creating increasingly ______ customers.
a. sophisticated and knowledgeable
b. loyal
c. dissatisfied
d. contentAnswer: a. sophisticated and Question: The ______ dimension of relationships with customers is concerned with the firm's access and connection to customers.
a. loyalty
b. reach
c. richness
d. affiliationAnswer: b. Question: Reach is an especially dimension for which firm?
a. Google
b. J.C. Penney
c. Blockbuster
d. Colgate-PalmoliveAnswer: a. Question: Customer ratings of products they bought is an example of:
a. loyalty.
b. reach.
c. richness.
d. affiliation.Answer: c. richness. Question: A company selling diapers knows the market is for people with young children. However, within that they can further divide the market by a demographic factor like:
a. culture.
b. lifestyle.
c. consumption pattern.
d. income.Answer: d. . Question: When firms use core competencies to implement value-creating strategies they are answering the "______" question.
a. who
b. what
c. why
d. how
Answer:
d. Question: Stage in the family life cycle is a ______ factor.
a. demographic
b. socioeconomic
c. psychological
d. perceptual
Answer:
b. Question: The book The Dyslexic Advantage appeals to a market of educators, people with dyslexia, their friends, family, and coworkers. This is customer segmentation by ______ factors.
a. demographic
b. socioeconomic
c. psychologicalAnswer: c. Question: Religious beliefs are an example of customer segmentation by ______ factors.
a. demographic
b. socioeconomic
c. geographic
d. psychologicalAnswer: d. Question: Historically, women have paid more for dry cleaning than men. Signature Cleaners advertises "equal price" for all customers. Signature Cleaners appeals to women, which is market segmentation by ______ fact
a. demographic
b. socioeconomicAnswer: a. Question: Milling Company makes Jiffy packaged baking mixes. It was established in 1930. It has never spent
a. differentiation
b. focused differentiation
c. integrated cost leadership/differentiation
d. cost leadershipAnswer: d. leadership Question: Mercedes mass produces luxury vehicles at a premium price. It uses a(n) ______ strategy.
a. differentiation
b. focused differentiation
c. integrated cost leadership/differentiation
d. focused cost leadershipAnswer: a. Question: A firm using a(n) ______ strategy generally needs to operate "below the radar" of larger and more resource rich firms that serve the broader market.
a. cost leadership
b. differentiation
c. focused
d. integrated cost Answer: c. |
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