MGT 4800J QUIZ #2 | QUESTIONS AND ANSWERS |
LATEST UPDATE | WITH COMPLETE SOLUTION.
Why is an examination of generic strategies valuable? Answer - Focusing on
generic strategies allows executives to concentrate on the core elements of
firms' business-level strategies
What are the four main generic strategies? Answer - (1) cost leadership,
(2) differentiation,
(3) focused cost leadership, and
(4) focused differentiation
What is a best-cost strategy? Answer - firms are able to offer both low prices
and unique features that customers find desirable
What does it mean to be "stuck in the middle"? Answer - Firms that are not
able to offer low prices or appealing unique features are referred to as "stuck in
the middle."
two dimensions that are critical to defining business-level strategy Answer - 1.
the source of competitive advantage (cost or uniqueness) and
2. the scope of operations (broad or narrow).
,limitations of generic strategies Answer - (1) Keeping costs low - limit
advertising spending
Business-level strategy addresses the question of how a firm will __________
in a particular industry Answer - compete
A _____________ ___________ is a general way of positioning a firm within an
industry Answer - generic strategy
2 types of scope of operations Answer - 1. broad target
2. narrow target
2 types of competitive advantage Answer - 1. cost
2. uniqueness
Differentiation is a ________ target and ____________ type of competitive
advantage Answer - broad, unique
Focused differentiation is a ________ target and ____________ type of
competitive advantage Answer - narrow, unique
Cost leadership is a ________ target and ____________ type of competitive
advantage Answer - broad, cost
Focused cost leadership is a ________ target and ____________ type of
competitive advantage Answer - narrow, cost
•Business-level _________________ examine how firms compete in a given
industry. Firms derive such strategies by executives making decisions about
, whether their source of _________________ _______________ is based on
______________ or _____________ and whether their scope of operations
targets a ___________ or _____________ market. Answer - strategies,
competitive advantage, price or differentiation, broad or narrow
Examining business-level strategy in terms of generic strategies has
____________________ Answer - limitations
Firms that compete based on _____________ and target a _______________
target market are following a cost leadership strategy Answer - price, broad
Many cost leaders rely on _______________of _______________ to achieve
efficiency Answer - economies of scale
Economies of scale are created when the costs of offering goods and services
__________________ as a firm is able to sell more items. This occurs because
expenses are ________________ across a greater number of items (=
efficiency) Answer - decreases, distributed
What are 3 pros of cost leadership Answer - (1) benefits relative to potential
entrants - discourages new and existing firms, because comp doesnt want to
compete directly with an efficient cost leaders' prices
(2) attract large market share
What are 3 cons of cost leadership Answer - (1) need for high sales - brand
loyalty - requires upfront investments in production or capacity
(2) minimizing ad, market research, R&D can be costly in long run (lagging
rivals)
LATEST UPDATE | WITH COMPLETE SOLUTION.
Why is an examination of generic strategies valuable? Answer - Focusing on
generic strategies allows executives to concentrate on the core elements of
firms' business-level strategies
What are the four main generic strategies? Answer - (1) cost leadership,
(2) differentiation,
(3) focused cost leadership, and
(4) focused differentiation
What is a best-cost strategy? Answer - firms are able to offer both low prices
and unique features that customers find desirable
What does it mean to be "stuck in the middle"? Answer - Firms that are not
able to offer low prices or appealing unique features are referred to as "stuck in
the middle."
two dimensions that are critical to defining business-level strategy Answer - 1.
the source of competitive advantage (cost or uniqueness) and
2. the scope of operations (broad or narrow).
,limitations of generic strategies Answer - (1) Keeping costs low - limit
advertising spending
Business-level strategy addresses the question of how a firm will __________
in a particular industry Answer - compete
A _____________ ___________ is a general way of positioning a firm within an
industry Answer - generic strategy
2 types of scope of operations Answer - 1. broad target
2. narrow target
2 types of competitive advantage Answer - 1. cost
2. uniqueness
Differentiation is a ________ target and ____________ type of competitive
advantage Answer - broad, unique
Focused differentiation is a ________ target and ____________ type of
competitive advantage Answer - narrow, unique
Cost leadership is a ________ target and ____________ type of competitive
advantage Answer - broad, cost
Focused cost leadership is a ________ target and ____________ type of
competitive advantage Answer - narrow, cost
•Business-level _________________ examine how firms compete in a given
industry. Firms derive such strategies by executives making decisions about
, whether their source of _________________ _______________ is based on
______________ or _____________ and whether their scope of operations
targets a ___________ or _____________ market. Answer - strategies,
competitive advantage, price or differentiation, broad or narrow
Examining business-level strategy in terms of generic strategies has
____________________ Answer - limitations
Firms that compete based on _____________ and target a _______________
target market are following a cost leadership strategy Answer - price, broad
Many cost leaders rely on _______________of _______________ to achieve
efficiency Answer - economies of scale
Economies of scale are created when the costs of offering goods and services
__________________ as a firm is able to sell more items. This occurs because
expenses are ________________ across a greater number of items (=
efficiency) Answer - decreases, distributed
What are 3 pros of cost leadership Answer - (1) benefits relative to potential
entrants - discourages new and existing firms, because comp doesnt want to
compete directly with an efficient cost leaders' prices
(2) attract large market share
What are 3 cons of cost leadership Answer - (1) need for high sales - brand
loyalty - requires upfront investments in production or capacity
(2) minimizing ad, market research, R&D can be costly in long run (lagging
rivals)
