MGMT 478 Final Exam Stevenson UPDATED ACTUAL Questions And Correct
Answers
C
Terms in this set (143)
low cost strategies business strategies that seek to establish long term competitive advantages by
emphasizing and perfecting value chain activities that can be achieved at cost
substantially below what competitors are able to match on a sustained basis. This
allows the firm, in turn, to compete primarily by charging a price lower than
competitors can match and still stay in business.
differentiation a business strategy that seeks to build competitive advantage with its product or
service by having it be "different" from other available competitive products
based on features, performance, or other factors not directly related to cost and
price. The difference would one that would be hard to create and or difficult to
copy or imitate
The skills and resources that foster differentiation: --- -strong marketing abilities
-product engineering
-creative talent and flair
-strong capabilities in basic research corporate reputation for quality or technical
leadership
-long tradition in an industry or unique combo of skills drawn from other
businesses
-strong cooperation from channels
strong cooperation from suppliers of major components to the product or service
companies seeking a sustained competitive advantage set up a new cost structure and differentiate the business
should look to : ---
The skills and resources that foster cost leadership are : -- low cost distribution system, sustained capital investment, products or services
- designed for ease of manufacture or delivery
speed based strategies business strategies built around functional capabilities and activities that allow the
company to meet customer needs directly or indirectly more rapidly than its main
competitors
The skill and resources that foster speed strategy : --- flexible manufacturing capabilities, excellent inbound and outbound logistics,
technical people in sales or customer service
businesses build strategies around distinct competitive speed, differentiation, cost advantages, quality
advantages, the four key sources are: ---
, market focus this is a generic strategy that applies a differentiation strategy approach, or a low
cost strategy approach, or a combination, and does so solely in a narrow or
focused market niche rather than trying to do so across the broader market. The
narrow focus may be geographically defined or defined by product type features,
or target customer type, or some combination of these
emerging industry an industry that has growing sales across all the companies in the industry based
on growing demand for the relatively new products, technologies, and or services
made available by the firms participating in this industry
growth industry strategies business strategies that may b more advantageous for firms participating in
rapidly growing industries and markets
mature industry strategies strategies used by firms competing in markets where the growth rate of that
market from year to year has reached or is close to zero
declining industry an industry in which the trend of total sales as an indicator of total demand for an
industry's products or services among all the participants in the industry have
started to drop from the last several years with the likelihood being that such a
trend will continue indefinitely
fragmented industry an industry in which there are numerous competitors such that no single firm or
small group of firms controls any significant share of the overall industry sales
global industry industry in which competition crosses national borders
grand strategy selection mix a four cell guide to strategies based upon whether the business is operating from
a position of strength or weakness and rely on its own resources versus having to
acquire resources via merger or acquisition
vertical acquisition acquisition of firms that supply inputs such as raw materials, or customers for its
outputs, such as warehouses for finished products
conglomerate diversification acquiring or entering businesses unrelated to a firm's current technologies,
markets, or products
retrenchment cutting back on products, markets, operations because the firm's overall
competitive and financial situation cannot support commitments needed to
sustain or build its operations
divestiture the sale of a firm or a major component
liquidation closing down the operations of a business and selling its assets and operations to
pay its debts and distribute any gains to stockholders
Answers
C
Terms in this set (143)
low cost strategies business strategies that seek to establish long term competitive advantages by
emphasizing and perfecting value chain activities that can be achieved at cost
substantially below what competitors are able to match on a sustained basis. This
allows the firm, in turn, to compete primarily by charging a price lower than
competitors can match and still stay in business.
differentiation a business strategy that seeks to build competitive advantage with its product or
service by having it be "different" from other available competitive products
based on features, performance, or other factors not directly related to cost and
price. The difference would one that would be hard to create and or difficult to
copy or imitate
The skills and resources that foster differentiation: --- -strong marketing abilities
-product engineering
-creative talent and flair
-strong capabilities in basic research corporate reputation for quality or technical
leadership
-long tradition in an industry or unique combo of skills drawn from other
businesses
-strong cooperation from channels
strong cooperation from suppliers of major components to the product or service
companies seeking a sustained competitive advantage set up a new cost structure and differentiate the business
should look to : ---
The skills and resources that foster cost leadership are : -- low cost distribution system, sustained capital investment, products or services
- designed for ease of manufacture or delivery
speed based strategies business strategies built around functional capabilities and activities that allow the
company to meet customer needs directly or indirectly more rapidly than its main
competitors
The skill and resources that foster speed strategy : --- flexible manufacturing capabilities, excellent inbound and outbound logistics,
technical people in sales or customer service
businesses build strategies around distinct competitive speed, differentiation, cost advantages, quality
advantages, the four key sources are: ---
, market focus this is a generic strategy that applies a differentiation strategy approach, or a low
cost strategy approach, or a combination, and does so solely in a narrow or
focused market niche rather than trying to do so across the broader market. The
narrow focus may be geographically defined or defined by product type features,
or target customer type, or some combination of these
emerging industry an industry that has growing sales across all the companies in the industry based
on growing demand for the relatively new products, technologies, and or services
made available by the firms participating in this industry
growth industry strategies business strategies that may b more advantageous for firms participating in
rapidly growing industries and markets
mature industry strategies strategies used by firms competing in markets where the growth rate of that
market from year to year has reached or is close to zero
declining industry an industry in which the trend of total sales as an indicator of total demand for an
industry's products or services among all the participants in the industry have
started to drop from the last several years with the likelihood being that such a
trend will continue indefinitely
fragmented industry an industry in which there are numerous competitors such that no single firm or
small group of firms controls any significant share of the overall industry sales
global industry industry in which competition crosses national borders
grand strategy selection mix a four cell guide to strategies based upon whether the business is operating from
a position of strength or weakness and rely on its own resources versus having to
acquire resources via merger or acquisition
vertical acquisition acquisition of firms that supply inputs such as raw materials, or customers for its
outputs, such as warehouses for finished products
conglomerate diversification acquiring or entering businesses unrelated to a firm's current technologies,
markets, or products
retrenchment cutting back on products, markets, operations because the firm's overall
competitive and financial situation cannot support commitments needed to
sustain or build its operations
divestiture the sale of a firm or a major component
liquidation closing down the operations of a business and selling its assets and operations to
pay its debts and distribute any gains to stockholders
