MAN 4720 Final Exam UCF (Capstone
UCF) Questions with Guaranteed Pass
Solutions 2025/2026 Updated.
A - Answer What is a generic business strategy?
A. a general way of positioning a firm's business-level strategy within an industry
B. a general way of positioning a firm's business-level strategy to penetrate an international
market
C. a general strategy that positions your firm in a competitive position within an industry
D. all of the above
A - Answer What are the two dimensions on which generic business strategies are classified?
A. breadth of competitive scope/source of competitive advantage
B. breadth of product line/source of competitive advantage
C. breadth of competitive scope/extent of vertical integration
D. breadth of product line/extent of vertical integration
D - Answer Which of the following is not a main generic strategies?
A. cost leadership
B. differentiation
C. focused low cost
D. focused penetration
F - Answer Which of the following is an example of one of the main generic strategies?
A. differentiation
B. diversification
C. focused low cost
D. cost abandonment
E. B & C
F. A & C
,A - Answer Which generic business strategy is on the intersection of competing on cost and
targeting a broad market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation
T - Answer T/F: The experience curve is known as the decline in unit cost of production as
cumulative output increases - based on knowledge/expertise.
F - Answer T/F: Economies of scale refers to an increase in unit cost of production as rate of
output increases (based on spreading out fixed costs).
C - Answer All of the following are disadvantages of cost leadership EXCEPT:
A. perceptions of quality
B. relies on volume
C. harder to survive price wars
D. can be too focused on cost
B - Answer Which of the following is a disadvantage of cost leadership:
A. perceptions of service
B. can be focused too much on cost
C. relies on demand
D. none of the above
B - Answer All of the following are advantages of cost leadership EXCEPT:
A. high profits through volume
B. perceptions of quality
C. easier to survive price wars
D. all of the above
F - Answer Which of the following is an advantage of cost leadership?
,A. perceptions of cost
B. easier to survive price wars
C. low profits through volume
D. high profits through volume
E. A & C
F. B & D
B - Answer Which generic business strategy is on the intersection of competing on
uniqueness and targeting a broad market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation
T - Answer T/F: Innovation becomes really important with a differentiation business strategy.
F - Answer T/F: Differentiation strategies face threats from knock offs but are not sensitive to
price wars.
F - Answer T/F: Differentiation prevents a firm from creating brand loyalty and increasing
profit margins.
C - Answer Which generic business strategy is on the intersection of competing on cost and
targeting a narrow market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation
A - Answer Which of the following IS NOT a disadvantage of focused generic business
strategies?
A. lower profit margins
, B. limited demand
C. niche may change or disappear
D. all of the above
B - Answer Which of the following is a disadvantage of focused generic business strategies?
A. lower profit margins
B. limited demand
C. decreased uniqueness of products
D. hardest strategy to implement
D - Answer Which generic business strategy is on the intersection of competing on
uniqueness and targeting a narrow market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation
C - Answer You are a consultant for Toyota and have determined that in the car
manufacturing market, their products are offered at a much lower price than competitors, but
are also substantially differentiated from competitors. The most accurate description of Toyota's
generic strategy is:
A. Differentiation
B. Overall Cost Leadership
C. Best Cost Strategy
D. Focused Differentiation
T - Answer T/F: Companies will choose a generic business strategy to avoid becoming "stuck
in the middle". These firms are the ones that don't try to compete on either differentiation or
cost.
D - Answer A company using a best cost strategy may do all of the following EXCEPT:
A. use more than one generic strategy
B. compete on price and uniqueness
UCF) Questions with Guaranteed Pass
Solutions 2025/2026 Updated.
A - Answer What is a generic business strategy?
A. a general way of positioning a firm's business-level strategy within an industry
B. a general way of positioning a firm's business-level strategy to penetrate an international
market
C. a general strategy that positions your firm in a competitive position within an industry
D. all of the above
A - Answer What are the two dimensions on which generic business strategies are classified?
A. breadth of competitive scope/source of competitive advantage
B. breadth of product line/source of competitive advantage
C. breadth of competitive scope/extent of vertical integration
D. breadth of product line/extent of vertical integration
D - Answer Which of the following is not a main generic strategies?
A. cost leadership
B. differentiation
C. focused low cost
D. focused penetration
F - Answer Which of the following is an example of one of the main generic strategies?
A. differentiation
B. diversification
C. focused low cost
D. cost abandonment
E. B & C
F. A & C
,A - Answer Which generic business strategy is on the intersection of competing on cost and
targeting a broad market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation
T - Answer T/F: The experience curve is known as the decline in unit cost of production as
cumulative output increases - based on knowledge/expertise.
F - Answer T/F: Economies of scale refers to an increase in unit cost of production as rate of
output increases (based on spreading out fixed costs).
C - Answer All of the following are disadvantages of cost leadership EXCEPT:
A. perceptions of quality
B. relies on volume
C. harder to survive price wars
D. can be too focused on cost
B - Answer Which of the following is a disadvantage of cost leadership:
A. perceptions of service
B. can be focused too much on cost
C. relies on demand
D. none of the above
B - Answer All of the following are advantages of cost leadership EXCEPT:
A. high profits through volume
B. perceptions of quality
C. easier to survive price wars
D. all of the above
F - Answer Which of the following is an advantage of cost leadership?
,A. perceptions of cost
B. easier to survive price wars
C. low profits through volume
D. high profits through volume
E. A & C
F. B & D
B - Answer Which generic business strategy is on the intersection of competing on
uniqueness and targeting a broad market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation
T - Answer T/F: Innovation becomes really important with a differentiation business strategy.
F - Answer T/F: Differentiation strategies face threats from knock offs but are not sensitive to
price wars.
F - Answer T/F: Differentiation prevents a firm from creating brand loyalty and increasing
profit margins.
C - Answer Which generic business strategy is on the intersection of competing on cost and
targeting a narrow market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation
A - Answer Which of the following IS NOT a disadvantage of focused generic business
strategies?
A. lower profit margins
, B. limited demand
C. niche may change or disappear
D. all of the above
B - Answer Which of the following is a disadvantage of focused generic business strategies?
A. lower profit margins
B. limited demand
C. decreased uniqueness of products
D. hardest strategy to implement
D - Answer Which generic business strategy is on the intersection of competing on
uniqueness and targeting a narrow market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation
C - Answer You are a consultant for Toyota and have determined that in the car
manufacturing market, their products are offered at a much lower price than competitors, but
are also substantially differentiated from competitors. The most accurate description of Toyota's
generic strategy is:
A. Differentiation
B. Overall Cost Leadership
C. Best Cost Strategy
D. Focused Differentiation
T - Answer T/F: Companies will choose a generic business strategy to avoid becoming "stuck
in the middle". These firms are the ones that don't try to compete on either differentiation or
cost.
D - Answer A company using a best cost strategy may do all of the following EXCEPT:
A. use more than one generic strategy
B. compete on price and uniqueness
