BSG EXAM 2 QUESTIONS &
ACCURATE ANSWERS PASSED 100%
Business Strategy - Correct Answer ✔✔ A leadership plan that achieves a specific set
of goals or objectives
Generic Strategies - Correct Answer ✔✔ 1. low cost provider
2. broad differentiation
3. focused low cost
4. focused differentiation
5. best cost provider`
Low cost provider - Correct Answer ✔✔ competitive advantage is based on lower
overall costs than rivals
Ways to achieve cost advantage - Correct Answer ✔✔ 1. perform value chain activities
effectively than rivals
2. eliminate some cost-producing activities
Broad differentiation - Correct Answer ✔✔ works best when buyers' needs cannot all be
met by a standardized product, or service, offering
Tactics for creating differentiating attributes - Correct Answer ✔✔ 1. creating superior
products
2. improving production
3. marketing and brand-building activities
4. customer service or adding new services
5. coordinating with changel allies
6. company culture
Broad Differentiation works best in markets where: - Correct Answer ✔✔ 1. Needs and
uses of the product are diverse
2. Many ways to differentiate the product that customers value
3. Rival firms follow similar differentiation approach
4. Technological change is fast paced
Risks with broad differentiation: - Correct Answer ✔✔ Differentiation that is:
-not valued
-too high priced
-easily intimidated
Competitor innovation
, Focused strategy - Correct Answer ✔✔ concentrate on a narrow piece of the total
market
focused differentiation strategy - Correct Answer ✔✔ offer products/services tailored to
a narrow, well-defined group of buyers
best-cost provider strategy - Correct Answer ✔✔ combination of low cost provider and
differentiation, the aim is to create desirable attributes while beating rivals on cost and
price
Cost drivers - Correct Answer ✔✔ a factor that has a strong influence on a companies
cost
value driver - Correct Answer ✔✔ a factor that can have a strong differentiating effect
tangible attributes - Correct Answer ✔✔ product specifications, functions and styling.
economy of scale - Correct Answer ✔✔ an ability to lower unit cost by increasing the
scale of operation
efficiency curve - Correct Answer ✔✔ Shows the trade off between costs and
performance for the current supply chain design if the supply chain is operated as
efficiently as it can be
globalization - Correct Answer ✔✔ seeing a rise in market capitalism around the world
international strategy - Correct Answer ✔✔ creating value and competing in global
markets
Diamond of National Competitive Advantage - Correct Answer ✔✔ Factor Endowments
Demand Conditions
Related Supported Industries
Firm Strategy, Structure and Rivalry
Factor Endowments - Correct Answer ✔✔ Availability and relative prices of inputs
(labor, materials)
Demand Conditions - Correct Answer ✔✔ home market size and growth rate, buyer's
tastes, consumer expectations
Related Supporting Industries - Correct Answer ✔✔ proximity of suppliers, end users,
and complementary industries
Firm Strategies, Structure, and Rivalry - Correct Answer ✔✔ different styles of
management and organizations, degree or local rivalry
ACCURATE ANSWERS PASSED 100%
Business Strategy - Correct Answer ✔✔ A leadership plan that achieves a specific set
of goals or objectives
Generic Strategies - Correct Answer ✔✔ 1. low cost provider
2. broad differentiation
3. focused low cost
4. focused differentiation
5. best cost provider`
Low cost provider - Correct Answer ✔✔ competitive advantage is based on lower
overall costs than rivals
Ways to achieve cost advantage - Correct Answer ✔✔ 1. perform value chain activities
effectively than rivals
2. eliminate some cost-producing activities
Broad differentiation - Correct Answer ✔✔ works best when buyers' needs cannot all be
met by a standardized product, or service, offering
Tactics for creating differentiating attributes - Correct Answer ✔✔ 1. creating superior
products
2. improving production
3. marketing and brand-building activities
4. customer service or adding new services
5. coordinating with changel allies
6. company culture
Broad Differentiation works best in markets where: - Correct Answer ✔✔ 1. Needs and
uses of the product are diverse
2. Many ways to differentiate the product that customers value
3. Rival firms follow similar differentiation approach
4. Technological change is fast paced
Risks with broad differentiation: - Correct Answer ✔✔ Differentiation that is:
-not valued
-too high priced
-easily intimidated
Competitor innovation
, Focused strategy - Correct Answer ✔✔ concentrate on a narrow piece of the total
market
focused differentiation strategy - Correct Answer ✔✔ offer products/services tailored to
a narrow, well-defined group of buyers
best-cost provider strategy - Correct Answer ✔✔ combination of low cost provider and
differentiation, the aim is to create desirable attributes while beating rivals on cost and
price
Cost drivers - Correct Answer ✔✔ a factor that has a strong influence on a companies
cost
value driver - Correct Answer ✔✔ a factor that can have a strong differentiating effect
tangible attributes - Correct Answer ✔✔ product specifications, functions and styling.
economy of scale - Correct Answer ✔✔ an ability to lower unit cost by increasing the
scale of operation
efficiency curve - Correct Answer ✔✔ Shows the trade off between costs and
performance for the current supply chain design if the supply chain is operated as
efficiently as it can be
globalization - Correct Answer ✔✔ seeing a rise in market capitalism around the world
international strategy - Correct Answer ✔✔ creating value and competing in global
markets
Diamond of National Competitive Advantage - Correct Answer ✔✔ Factor Endowments
Demand Conditions
Related Supported Industries
Firm Strategy, Structure and Rivalry
Factor Endowments - Correct Answer ✔✔ Availability and relative prices of inputs
(labor, materials)
Demand Conditions - Correct Answer ✔✔ home market size and growth rate, buyer's
tastes, consumer expectations
Related Supporting Industries - Correct Answer ✔✔ proximity of suppliers, end users,
and complementary industries
Firm Strategies, Structure, and Rivalry - Correct Answer ✔✔ different styles of
management and organizations, degree or local rivalry
