SEVI 30103 EXAM 2 QUESTIONS AND CORRECT RATIONALES
1. Business-level strategy integrated and coordinated set
of commitments and actions
the firm uses to gain a
competitive advan- tage by
exploiting core competen- cies
in specific product markets
2. The generic business level strategies - Overall Cost Leadership
-Ditterentiation
-Focus
3. Overall Cost Leadership - creating a low-cost position
rela- tive to competitors
-managing the value chain to
low- er costs
*focus on producing
goods/ser- vices with features
that are accept- able to
customers at the lowest cost,
relative to that of competitors
4. Overall Cost Leadership - Value creating actitivies - construction of eflcient
scale fa-
cilities utilizing automation
-vigorous pursuit of cost
reduc- tions from
experience
-tight cost and overhead
control, fewer levels of
higher-up
-avoidance of marginal
1/
30
,SEVI 30103 EXAM 2 QUESTIONS AND CORRECT RATIONALES
customer accounts,
profitability at the cus- tomer
-cost minimization is value
chain activities including R&D,
service, sales, and
advertising
2/
30
, SEVI 30103 EXAM 2 QUESTIONS AND CORRECT RATIONALES
5. Differentiation - products/services that
are unique and valued
-emphasis on non-price
attribut- es for which
customers will pay a
premium
-a level of cost parity relative
to competitors
-integration of multiple
points along the value
chain
-ditterentiation along multiple
di- mensions at once
6. Differentiation can have many forms: - prestige brand image
-quality
-technology
-innovation
-customer service
7. Differentiation - Value creating activities - superior material handling to
minimize damage
-low defect rates to improve
qual- ity
-accurate, responsive order
pro- cessing
-personal relationships with
key customers and rapid
response to customer
service
-creative/innovative
3/
30
1. Business-level strategy integrated and coordinated set
of commitments and actions
the firm uses to gain a
competitive advan- tage by
exploiting core competen- cies
in specific product markets
2. The generic business level strategies - Overall Cost Leadership
-Ditterentiation
-Focus
3. Overall Cost Leadership - creating a low-cost position
rela- tive to competitors
-managing the value chain to
low- er costs
*focus on producing
goods/ser- vices with features
that are accept- able to
customers at the lowest cost,
relative to that of competitors
4. Overall Cost Leadership - Value creating actitivies - construction of eflcient
scale fa-
cilities utilizing automation
-vigorous pursuit of cost
reduc- tions from
experience
-tight cost and overhead
control, fewer levels of
higher-up
-avoidance of marginal
1/
30
,SEVI 30103 EXAM 2 QUESTIONS AND CORRECT RATIONALES
customer accounts,
profitability at the cus- tomer
-cost minimization is value
chain activities including R&D,
service, sales, and
advertising
2/
30
, SEVI 30103 EXAM 2 QUESTIONS AND CORRECT RATIONALES
5. Differentiation - products/services that
are unique and valued
-emphasis on non-price
attribut- es for which
customers will pay a
premium
-a level of cost parity relative
to competitors
-integration of multiple
points along the value
chain
-ditterentiation along multiple
di- mensions at once
6. Differentiation can have many forms: - prestige brand image
-quality
-technology
-innovation
-customer service
7. Differentiation - Value creating activities - superior material handling to
minimize damage
-low defect rates to improve
qual- ity
-accurate, responsive order
pro- cessing
-personal relationships with
key customers and rapid
response to customer
service
-creative/innovative
3/
30
