BUSA 4980 CHAPTER 4 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Business Level Strategy - Answers how to compete in a specific market
Southwest Activity Map - Answers tightly integrated activities are difficult for competitors to imitate
Southwest Employees - Answers company culture fosters commitment and enthusiasm
5 Generic Business Level Strategies - Answers 1. Cost Leadership（Wal-mart)
2. Differentiation: Be unique and distinct (Nike, Delta, Starbucks)
Consumers willing to premiere price to perceive the different value and service
3. Focused Cost Leadership: low cost and narrow target market
4. Focused Differentiation
5. Integrated Cost Leadership/Differentiation
Why are Business Level Strategies Generic? - Answers strategies can be applied across any industry
Porter's Two Demensions - Answers 1. Target Market
2. Basis for Customer Value
Target Markets - Answers 1. Broad
2. Narrow
Cost Leadership - Answers to produce products with features that are acceptable to customers at the
lowest cost, relative to competitors
Differentiation - Answers to produce products that customers perceive as being different in ways that
are important to them at an acceptable cost
Focused Costleadership - Answers to produce goods on a narrow market that serve the needs of a
particular competitive segment
Focused Differentiation - Answers to produce goods to a narrow market that are highly differentiated
Cost Leadership Companies - Answers 1. Walmart
Focused Cost Leadership Companies - Answers 1. Eats
2. Farmer' Market
Differentiated Companies - Answers 1. Apple - Innovation
2. Starbucks
3. Caterpillar - Customer Service
4. Mckinze and Company - Consulting Services
5. Lexus
Focused Differtiation Companies - Answers 1. High End Cars
2. Viagra
3. Drug Companies
Integrated Cost Leadership Companies - Answers 1. Target
2. Home Depot
Integrated Cost Leadership/Differentiation - Answers engaging in value chain activies and support
functions that allow a firm to have low costs and differentiate
Integrated Risk - Answers potential to get stuck in the middle and no one knows what you are doing,
KMART
Broad Market - Answers serving many customers in many markets
Narrow Market - Answers one target market in one geographical region
3 Things to Implement Integrated Strategy - Answers 1. Flexible Manufacturing Systems
2. Total Quality Management
3. Information Networks
Flexible Manufacturing Systems - Answers systems to increase human, physical, and information
resources in order to differentiate and keep costs down
Information Networks - Answers link companies with suppliers, distributors, and customers
Total Quality Management - Answers management process to emphasize an organizations
commitment to customer and continuous improvement on all processes through problem solving
approaches based on empowerment of employees
Reach - Answers extent of access an connection with customers
TV - Answers has become a narrow market, channels are highly focused
Better Value Chain - Answers helps cost leadership
quiz 2 #12 - Answers A
Value - Answers willing to pay a higher price for products based on perception
Counterfitting - Answers hurts differentiation
Business Level Strategy - Answers how to compete in a specific market
Southwest Activity Map - Answers tightly integrated activities are difficult for competitors to imitate
Southwest Employees - Answers company culture fosters commitment and enthusiasm
5 Generic Business Level Strategies - Answers 1. Cost Leadership（Wal-mart)
2. Differentiation: Be unique and distinct (Nike, Delta, Starbucks)
Consumers willing to premiere price to perceive the different value and service
3. Focused Cost Leadership: low cost and narrow target market
4. Focused Differentiation
5. Integrated Cost Leadership/Differentiation
Why are Business Level Strategies Generic? - Answers strategies can be applied across any industry
Porter's Two Demensions - Answers 1. Target Market
2. Basis for Customer Value
Target Markets - Answers 1. Broad
2. Narrow
Cost Leadership - Answers to produce products with features that are acceptable to customers at the
lowest cost, relative to competitors
Differentiation - Answers to produce products that customers perceive as being different in ways that
are important to them at an acceptable cost
Focused Costleadership - Answers to produce goods on a narrow market that serve the needs of a
particular competitive segment
Focused Differentiation - Answers to produce goods to a narrow market that are highly differentiated
Cost Leadership Companies - Answers 1. Walmart
Focused Cost Leadership Companies - Answers 1. Eats
2. Farmer' Market
Differentiated Companies - Answers 1. Apple - Innovation
2. Starbucks
3. Caterpillar - Customer Service
4. Mckinze and Company - Consulting Services
5. Lexus
Focused Differtiation Companies - Answers 1. High End Cars
2. Viagra
3. Drug Companies
Integrated Cost Leadership Companies - Answers 1. Target
2. Home Depot
Integrated Cost Leadership/Differentiation - Answers engaging in value chain activies and support
functions that allow a firm to have low costs and differentiate
Integrated Risk - Answers potential to get stuck in the middle and no one knows what you are doing,
KMART
Broad Market - Answers serving many customers in many markets
Narrow Market - Answers one target market in one geographical region
3 Things to Implement Integrated Strategy - Answers 1. Flexible Manufacturing Systems
2. Total Quality Management
3. Information Networks
Flexible Manufacturing Systems - Answers systems to increase human, physical, and information
resources in order to differentiate and keep costs down
Information Networks - Answers link companies with suppliers, distributors, and customers
Total Quality Management - Answers management process to emphasize an organizations
commitment to customer and continuous improvement on all processes through problem solving
approaches based on empowerment of employees
Reach - Answers extent of access an connection with customers
TV - Answers has become a narrow market, channels are highly focused
Better Value Chain - Answers helps cost leadership
quiz 2 #12 - Answers A
Value - Answers willing to pay a higher price for products based on perception
Counterfitting - Answers hurts differentiation
