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MAN 4720 Strategic Management Capstone Final
Verified Examination, 2026/2027 – Comprehensive
Business Strategy Examination
All of the following are advantages of cost leadership
EXCEPT:
A. high profits through volume
B. perceptions of quality
C. easier to survive price wars
D. all of the above - Answer-B
Which of the following is an advantage of cost leadership?
A. perceptions of cost
B. easier to survive price wars
C. low profits through volume
D. high profits through volume
E. A & C
F. B & D - Answer-F
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Which generic business strategy is on the intersection of
competing on uniqueness and targeting a broad market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation - Answer-B
T/F: Innovation becomes really important with a
differentiation business strategy. - Answer-T
T/F: Differentiation strategies face threats from knock offs
but are not sensitive to price wars. - Answer-F
T/F: Differentiation prevents a firm from creating brand
loyalty and increasing profit margins. - Answer-F
Which generic business strategy is on the intersection of
competing on cost and targeting a narrow market?
A. cost leadership
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B. differentiation
C. focused low cost
D. focused differentiation - Answer-C
Which of the following IS NOT a disadvantage of focused
generic business strategies?
A. lower profit margins
B. limited demand
C. niche may change or disappear
D. all of the above - Answer-A
Which of the following is a disadvantage of focused
generic business strategies?
A. lower profit margins
B. limited demand
C. decreased uniqueness of products
D. hardest strategy to implement - Answer-B
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Which generic business strategy is on the intersection of
competing on uniqueness and targeting a narrow market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation - Answer-D
You are a consultant for Toyota and have determined that
in the car manufacturing market, their products are offered
at a much lower price than competitors, but are also
substantially differentiated from competitors. The most
accurate description of Toyota's generic strategy is:
A. Differentiation
B. Overall Cost Leadership
C. Best Cost Strategy
D. Focused Differentiation - Answer-C
T/F: Companies will choose a generic business strategy to
avoid becoming "stuck in the middle". These firms are the
MAN 4720 Strategic Management Capstone Final
Verified Examination, 2026/2027 – Comprehensive
Business Strategy Examination
All of the following are advantages of cost leadership
EXCEPT:
A. high profits through volume
B. perceptions of quality
C. easier to survive price wars
D. all of the above - Answer-B
Which of the following is an advantage of cost leadership?
A. perceptions of cost
B. easier to survive price wars
C. low profits through volume
D. high profits through volume
E. A & C
F. B & D - Answer-F
,2|Page
Which generic business strategy is on the intersection of
competing on uniqueness and targeting a broad market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation - Answer-B
T/F: Innovation becomes really important with a
differentiation business strategy. - Answer-T
T/F: Differentiation strategies face threats from knock offs
but are not sensitive to price wars. - Answer-F
T/F: Differentiation prevents a firm from creating brand
loyalty and increasing profit margins. - Answer-F
Which generic business strategy is on the intersection of
competing on cost and targeting a narrow market?
A. cost leadership
,3|Page
B. differentiation
C. focused low cost
D. focused differentiation - Answer-C
Which of the following IS NOT a disadvantage of focused
generic business strategies?
A. lower profit margins
B. limited demand
C. niche may change or disappear
D. all of the above - Answer-A
Which of the following is a disadvantage of focused
generic business strategies?
A. lower profit margins
B. limited demand
C. decreased uniqueness of products
D. hardest strategy to implement - Answer-B
, 4|Page
Which generic business strategy is on the intersection of
competing on uniqueness and targeting a narrow market?
A. cost leadership
B. differentiation
C. focused low cost
D. focused differentiation - Answer-D
You are a consultant for Toyota and have determined that
in the car manufacturing market, their products are offered
at a much lower price than competitors, but are also
substantially differentiated from competitors. The most
accurate description of Toyota's generic strategy is:
A. Differentiation
B. Overall Cost Leadership
C. Best Cost Strategy
D. Focused Differentiation - Answer-C
T/F: Companies will choose a generic business strategy to
avoid becoming "stuck in the middle". These firms are the
