STRATEGIC MGMT 490 ULL CH 5,6,8,10 QUESTIONS
AND VERIFIED ANSWERS
WOTF (which of the following) are good opportunities for a company pursuing a low-
cost provider strategy?? - Answers - -price competition among competitors is vigorous
-rivals offer vertually identical products
-consumers use a product offered by rival companies in the same way
how does Nucor produce steel at a far lower cost than traditional steel mills? - Answers
- -a smaller workforce
-a lower capital investment
-lower operating costs
to reduce costs which amenities does Southwest NOT offer? - Answers - -assigned
seating
-baggage transfer between airlines
-first-class service
which strategies are recommended for enhancing differentiation based on value
drivers? (8) - Answers - -create products features and performance attributes that
appeal to a wide range of buyers
-improve customer service or add extra services
-invest in production-related R&D activities
-strive for innovation and tech advances
-pursue continuous quality improvement
-increase marketing and brand building
-seek out high quality inputs
-emphasize human resource activities that improve quality of company personnel
the potential for the preference for a niche market to change over time can present a
problem for companies that employ a __ - Answers - focused strategy
risk does not apply to a low-cost strategy
WOTF is a typical action for companies that pursue a low-cost leadership? - Answers -
offering lower prices than their rivals
Nucor Corp eliminates many steps in the steel manufacturing process by using what
equipment - Answers - electric arc furnaces
to increase the number of flights per day, Southwest Airlines - Answers - decreased
turnaround time at the gates
, what option do companies have for translating a low-cost advantage into profit
performance? - Answers - under pricing competitors
which methods help a company use cost drivers effectively? - Answers - -operating
facilities at full capacity
-capturing all available economies of scale
-improving supply chain effciency
WOTF are ways that online systems and advanced software can help a company
achieve operating efficiency? - Answers - -cutting production times
-reducing parts to inventories
WOTf allow a company to sell directly to customers effectively? - Answers - -
maintaining a direct sales staff
conducting sales through a company website
what pitfalls should a low-cost provider avoid? - Answers - -relying on a cost-reduction
approach that is easy to copy
-fixating on the cost reduction to the exclusion of product features
WOTF are results of successful differentiation strategies adopted by companies? -
Answers - -an increase in unit sales
-an improvement in buyer loyalty
when can differentiation strategies increase a company's profitability? - Answers - -
when a products prices can be raised significantly
-when increased sales are more than enough to cover the costs of differentiation
a company that employs a focused differentiation strategy may experience intense
competition if __ - Answers - the market segment. becomes too attractive
differentiation strategies fail when which of the following occur - Answers - -when
competitors match a company's strategy
-when buyers don't value a product or brands uniqueness
WOTF allow a company to sell directly to customers effectively? - Answers - -
conducting sales through a company website?
-maintaining a direct sales staff
T or F: Differentiation strategies are best created and developed within marketing and
advertising departments - Answers - FALSE
a merger can be defined as__ - Answers - the combining of two or more compnanies
into a single corporate entity
AND VERIFIED ANSWERS
WOTF (which of the following) are good opportunities for a company pursuing a low-
cost provider strategy?? - Answers - -price competition among competitors is vigorous
-rivals offer vertually identical products
-consumers use a product offered by rival companies in the same way
how does Nucor produce steel at a far lower cost than traditional steel mills? - Answers
- -a smaller workforce
-a lower capital investment
-lower operating costs
to reduce costs which amenities does Southwest NOT offer? - Answers - -assigned
seating
-baggage transfer between airlines
-first-class service
which strategies are recommended for enhancing differentiation based on value
drivers? (8) - Answers - -create products features and performance attributes that
appeal to a wide range of buyers
-improve customer service or add extra services
-invest in production-related R&D activities
-strive for innovation and tech advances
-pursue continuous quality improvement
-increase marketing and brand building
-seek out high quality inputs
-emphasize human resource activities that improve quality of company personnel
the potential for the preference for a niche market to change over time can present a
problem for companies that employ a __ - Answers - focused strategy
risk does not apply to a low-cost strategy
WOTF is a typical action for companies that pursue a low-cost leadership? - Answers -
offering lower prices than their rivals
Nucor Corp eliminates many steps in the steel manufacturing process by using what
equipment - Answers - electric arc furnaces
to increase the number of flights per day, Southwest Airlines - Answers - decreased
turnaround time at the gates
, what option do companies have for translating a low-cost advantage into profit
performance? - Answers - under pricing competitors
which methods help a company use cost drivers effectively? - Answers - -operating
facilities at full capacity
-capturing all available economies of scale
-improving supply chain effciency
WOTF are ways that online systems and advanced software can help a company
achieve operating efficiency? - Answers - -cutting production times
-reducing parts to inventories
WOTf allow a company to sell directly to customers effectively? - Answers - -
maintaining a direct sales staff
conducting sales through a company website
what pitfalls should a low-cost provider avoid? - Answers - -relying on a cost-reduction
approach that is easy to copy
-fixating on the cost reduction to the exclusion of product features
WOTF are results of successful differentiation strategies adopted by companies? -
Answers - -an increase in unit sales
-an improvement in buyer loyalty
when can differentiation strategies increase a company's profitability? - Answers - -
when a products prices can be raised significantly
-when increased sales are more than enough to cover the costs of differentiation
a company that employs a focused differentiation strategy may experience intense
competition if __ - Answers - the market segment. becomes too attractive
differentiation strategies fail when which of the following occur - Answers - -when
competitors match a company's strategy
-when buyers don't value a product or brands uniqueness
WOTF allow a company to sell directly to customers effectively? - Answers - -
conducting sales through a company website?
-maintaining a direct sales staff
T or F: Differentiation strategies are best created and developed within marketing and
advertising departments - Answers - FALSE
a merger can be defined as__ - Answers - the combining of two or more compnanies
into a single corporate entity
