4940 Exam 2 And Exam 3 Study Guide
Questions with Actual Detailed
Answers.
global mind-set - Answer the ability to analyze, understand and manage an internal
organization in ways that are not dependent on the assumptions of a single country, culture, or
context.
Value - Answer is measured by a product's performance characteristics and by its attributes
for which customers are willing to pay
Tangible resources - Answer are assets that can be observed and quantified.
- Tangible resources are hard to leverage.
- it is difficult to derive additional business or value from
Intangible resources - Answer are assets that are rooted deeply in the firm's history,
accumulate over time, and are relatively difficult for competitors to analyze and imitate.
- Are less visible and more difficult for competitors to understand, purchase, imitate, or
substitute for
- Are more relied on to be the foundation for a firm's capabilities
- Can be leveraged
Valuable capabilities - Answer allow the firm to exploit opportunities or neutralize threats in
its external environment.
Rare capabilities - Answer capabilities that few, if any, competitors possess.
Costly-to-imitate capabilities - Answer are capabilities that other firms cannot easily develop.
- historical: a unique and a valuable organizational culture or brand name
- ambiguous cause: the causes and uses of competence are unclear
- social complexity: interpersonal relationships, trust, and friendships among managers,
suppliers, and customers
nonsubstitutable capabilities - Answer do not have strategic equivalents.
,Value chain activities - Answer are activities or tasks the firm completes in order to produce
products and then sell, distribute, and service those products in ways that create value for
customers.
Support functions - Answer include the activities or tasks the firm completes in order to
support the work being done to produce, sell, distribute, and service the products the firm is
producing.
business-level strategy - Answer is an integrated and coordinated set of commitments and
actions the firm uses to gain a competitive advantage by exploiting core competencies in a
specific product market.
Market segmentation - Answer is the process of dividing customers into groups based on
their needs.
- used to cluster customers with similar needs into identifiable groups.
- Firms can use almost any identifiable human or organizational characteristic to subdivide a
market into segments that differ from one another on a given characteristic.
business model - Answer describes what a firm does to create, deliver, and capture value for
its stakeholders.
cost leadership strategy - Answer - is an integrated set of actions taken to produce products
with features that are acceptable to customers at the lowest cost, relative to that of
competitors.
- these firms usually sell standardized goods/ services but with competitive levels of
differentiation, to the industry's most typical customers.
differentiation strategy - Answer - is an integrated set of actions taken to produce products
(at an acceptable cost) that customers perceive as being different in ways that are important to
them.
- target customers for whom the firm creates value because of the manner in which its products
differ from those produced and marketed by competitors.
focus strategy - Answer integrated set of actions taken to produce products that serve the
needs of
a particular segment of customers.
integrated cost leadership/differentiation strategy - Answer finds a firm engaging
simultaneously in primary value-chain activities and support functions
to achieve a low-cost position with some product differentiation.
, - firms seek to produce products at a relatively low cost that have some differentiated features
that their customers value.
Total quality management (TQM) - Answer involves the implementation of appropriate
tools/techniques to provide products and services to customers with best quality.
Competitive advantages have a _____ life. Because of this, firms eventually _____ competitive
advantages. - Answer limited; duplicate
a competitive advantage's sustainability is a function of three factors: - Answer 1. The rate of
core competence obsolescence because of environmental changes
2. The availability of substitutes for the core competence
3. The imitability of the core competence
Blind taste-tests have shown that the taste of premium-priced vodkas and inexpensive vodkas
are indistinguishable even to regular drinkers of vodka. But the sales of premium vodkas are
thriving. This is an example of the - Answer perception of perceived prestige and status as a
means of differentiating a product.
The focused differentiation strategy differs from the differentiation strategy in that - Answer
focused differentiators target a narrower customer market.
Blue Apron is committed to helping customers make good choices in what they eat by delivering
food directly to consumers. Blue Apron had a __________ model and uses a __________
strategy. - Answer subscription; differentiation
The integration of a cost leadership and a differentiation strategy - Answer is challenging
because it increases the number of value-chain activities and support functions in which the
firm must become competent.
A company pursuing the differentiation or focused differentiation strategy would tend to -
Answer develop flexible systems that allow rapid response to customers' changing needs.
All six of these steps are critical to the successful implementation of launching a new strategic
plan. - Answer 1. Disseminate (Pre-launch)
2. Designate
3. Budget
4. Launch
5. Train
Questions with Actual Detailed
Answers.
global mind-set - Answer the ability to analyze, understand and manage an internal
organization in ways that are not dependent on the assumptions of a single country, culture, or
context.
Value - Answer is measured by a product's performance characteristics and by its attributes
for which customers are willing to pay
Tangible resources - Answer are assets that can be observed and quantified.
- Tangible resources are hard to leverage.
- it is difficult to derive additional business or value from
Intangible resources - Answer are assets that are rooted deeply in the firm's history,
accumulate over time, and are relatively difficult for competitors to analyze and imitate.
- Are less visible and more difficult for competitors to understand, purchase, imitate, or
substitute for
- Are more relied on to be the foundation for a firm's capabilities
- Can be leveraged
Valuable capabilities - Answer allow the firm to exploit opportunities or neutralize threats in
its external environment.
Rare capabilities - Answer capabilities that few, if any, competitors possess.
Costly-to-imitate capabilities - Answer are capabilities that other firms cannot easily develop.
- historical: a unique and a valuable organizational culture or brand name
- ambiguous cause: the causes and uses of competence are unclear
- social complexity: interpersonal relationships, trust, and friendships among managers,
suppliers, and customers
nonsubstitutable capabilities - Answer do not have strategic equivalents.
,Value chain activities - Answer are activities or tasks the firm completes in order to produce
products and then sell, distribute, and service those products in ways that create value for
customers.
Support functions - Answer include the activities or tasks the firm completes in order to
support the work being done to produce, sell, distribute, and service the products the firm is
producing.
business-level strategy - Answer is an integrated and coordinated set of commitments and
actions the firm uses to gain a competitive advantage by exploiting core competencies in a
specific product market.
Market segmentation - Answer is the process of dividing customers into groups based on
their needs.
- used to cluster customers with similar needs into identifiable groups.
- Firms can use almost any identifiable human or organizational characteristic to subdivide a
market into segments that differ from one another on a given characteristic.
business model - Answer describes what a firm does to create, deliver, and capture value for
its stakeholders.
cost leadership strategy - Answer - is an integrated set of actions taken to produce products
with features that are acceptable to customers at the lowest cost, relative to that of
competitors.
- these firms usually sell standardized goods/ services but with competitive levels of
differentiation, to the industry's most typical customers.
differentiation strategy - Answer - is an integrated set of actions taken to produce products
(at an acceptable cost) that customers perceive as being different in ways that are important to
them.
- target customers for whom the firm creates value because of the manner in which its products
differ from those produced and marketed by competitors.
focus strategy - Answer integrated set of actions taken to produce products that serve the
needs of
a particular segment of customers.
integrated cost leadership/differentiation strategy - Answer finds a firm engaging
simultaneously in primary value-chain activities and support functions
to achieve a low-cost position with some product differentiation.
, - firms seek to produce products at a relatively low cost that have some differentiated features
that their customers value.
Total quality management (TQM) - Answer involves the implementation of appropriate
tools/techniques to provide products and services to customers with best quality.
Competitive advantages have a _____ life. Because of this, firms eventually _____ competitive
advantages. - Answer limited; duplicate
a competitive advantage's sustainability is a function of three factors: - Answer 1. The rate of
core competence obsolescence because of environmental changes
2. The availability of substitutes for the core competence
3. The imitability of the core competence
Blind taste-tests have shown that the taste of premium-priced vodkas and inexpensive vodkas
are indistinguishable even to regular drinkers of vodka. But the sales of premium vodkas are
thriving. This is an example of the - Answer perception of perceived prestige and status as a
means of differentiating a product.
The focused differentiation strategy differs from the differentiation strategy in that - Answer
focused differentiators target a narrower customer market.
Blue Apron is committed to helping customers make good choices in what they eat by delivering
food directly to consumers. Blue Apron had a __________ model and uses a __________
strategy. - Answer subscription; differentiation
The integration of a cost leadership and a differentiation strategy - Answer is challenging
because it increases the number of value-chain activities and support functions in which the
firm must become competent.
A company pursuing the differentiation or focused differentiation strategy would tend to -
Answer develop flexible systems that allow rapid response to customers' changing needs.
All six of these steps are critical to the successful implementation of launching a new strategic
plan. - Answer 1. Disseminate (Pre-launch)
2. Designate
3. Budget
4. Launch
5. Train
