MGT 4335 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
business-level strategy - AnswersA strategy designed for a firm or a division of a firm that competes
within a single business.
generic strategies - AnswersBasic types of business-level strategies based on breadth of target market
(industrywide versus narrow market segment) and type of competitive advantage (low cost versus
uniqueness).
overall cost leadership - AnswersA firm's generic strategy based on appeal to the industrywide market
using a competitive advantage based on low cost.
experience curve - AnswersThe decline in unit costs of production as cumulative output increases.
competitive parity - AnswersA firm's achievement of similarity, or being "on par," with competitors
with respect to low cost, differentiation, or other strategic product characteristic.
differentiation strategy - AnswersA firm's generic strategy based on creating differences in the firm's
product or service offering by creating something that is perceived industrywide as unique and valued
by customers.
focus strategy - AnswersA firm's generic strategy based on appeal to a narrow market segment within
an industry.
combination strategies - AnswersFirms' integrations of various strategies to provide multiple types of
value to customers.
industry life cycle - AnswersThe stages of introduction, growth, maturity, and decline that typically
occur over the life of an industry.
introduction stage - AnswersThe first stage of the industry life cycle characterized by new products
not known to customers, poorly defined market segments, unspecified product features, low sales
growth, rapid technological change, operating losses, and a need for financial support.
growth stage - AnswersThe second stage of the product life cycle characterized by strong increases in
sales, growing competition, developing brand recognition, and a need for financing complementary
value-chain activities.
maturity stage - AnswersThe third stage of the product life cycle characterized by slowing demand
growth, saturated markets, direct competition, price competition, and emphasis on efficient
operations.
decline stage - AnswersThe fourth stage of the product life cycle characterized by falling sales and
profits, increasing price competition, and industry consolidation.
diversification - AnswersThe process of firms expanding their operations by entering new businesses.
related diversification - AnswersA firm entering a different business in which it can benefit from
leveraging core competencies, sharing activities, or building market power.
economies of scope - AnswersCost savings from leveraging core competencies or sharing related
activities among businesses in a corporation.
core competencies - AnswersA firm's strategic resources that reflect the collective learning in the
organization.
sharing activities - AnswersHaving activities of two or more businesses' value chains done by one of
the businesses.
market power - AnswersFirms' abilities to profit through restricting or controlling supply to a market
or coordinating with other firms to reduce investment.
pooled negotiating power - AnswersThe improvement in bargaining position relative to suppliers and
customers.
vertical integration - AnswersAn expansion or extension of the firm by integrating preceding or
successive production processes.
unrelated diversification - AnswersA firm entering a different business that has little horizontal
interaction with other businesses of a firm.
parenting advantage - AnswersThe positive contributions of the corporate office to a new business as
a result of expertise and support provided.
restructuring - AnswersThe intervention of the corporate office in a new business that substantially
changes the assets, capital structure, or management.
portfolio management - AnswersA method of assessing the competitive position of a portfolio of
businesses, suggesting strategic alternatives, and identifying priorities for resource allocation.
acquisitions - AnswersThe incorporation of one firm into another through purchase.
mergers - AnswersThe combining of two or more firms into one new legal entity.
business-level strategy - AnswersA strategy designed for a firm or a division of a firm that competes
within a single business.
generic strategies - AnswersBasic types of business-level strategies based on breadth of target market
(industrywide versus narrow market segment) and type of competitive advantage (low cost versus
uniqueness).
overall cost leadership - AnswersA firm's generic strategy based on appeal to the industrywide market
using a competitive advantage based on low cost.
experience curve - AnswersThe decline in unit costs of production as cumulative output increases.
competitive parity - AnswersA firm's achievement of similarity, or being "on par," with competitors
with respect to low cost, differentiation, or other strategic product characteristic.
differentiation strategy - AnswersA firm's generic strategy based on creating differences in the firm's
product or service offering by creating something that is perceived industrywide as unique and valued
by customers.
focus strategy - AnswersA firm's generic strategy based on appeal to a narrow market segment within
an industry.
combination strategies - AnswersFirms' integrations of various strategies to provide multiple types of
value to customers.
industry life cycle - AnswersThe stages of introduction, growth, maturity, and decline that typically
occur over the life of an industry.
introduction stage - AnswersThe first stage of the industry life cycle characterized by new products
not known to customers, poorly defined market segments, unspecified product features, low sales
growth, rapid technological change, operating losses, and a need for financial support.
growth stage - AnswersThe second stage of the product life cycle characterized by strong increases in
sales, growing competition, developing brand recognition, and a need for financing complementary
value-chain activities.
maturity stage - AnswersThe third stage of the product life cycle characterized by slowing demand
growth, saturated markets, direct competition, price competition, and emphasis on efficient
operations.
decline stage - AnswersThe fourth stage of the product life cycle characterized by falling sales and
profits, increasing price competition, and industry consolidation.
diversification - AnswersThe process of firms expanding their operations by entering new businesses.
related diversification - AnswersA firm entering a different business in which it can benefit from
leveraging core competencies, sharing activities, or building market power.
economies of scope - AnswersCost savings from leveraging core competencies or sharing related
activities among businesses in a corporation.
core competencies - AnswersA firm's strategic resources that reflect the collective learning in the
organization.
sharing activities - AnswersHaving activities of two or more businesses' value chains done by one of
the businesses.
market power - AnswersFirms' abilities to profit through restricting or controlling supply to a market
or coordinating with other firms to reduce investment.
pooled negotiating power - AnswersThe improvement in bargaining position relative to suppliers and
customers.
vertical integration - AnswersAn expansion or extension of the firm by integrating preceding or
successive production processes.
unrelated diversification - AnswersA firm entering a different business that has little horizontal
interaction with other businesses of a firm.
parenting advantage - AnswersThe positive contributions of the corporate office to a new business as
a result of expertise and support provided.
restructuring - AnswersThe intervention of the corporate office in a new business that substantially
changes the assets, capital structure, or management.
portfolio management - AnswersA method of assessing the competitive position of a portfolio of
businesses, suggesting strategic alternatives, and identifying priorities for resource allocation.
acquisitions - AnswersThe incorporation of one firm into another through purchase.
mergers - AnswersThe combining of two or more firms into one new legal entity.
