MBA 705 Weeks 5-6 Exam #1 Questions with Correct Answers
Support corporate- and business-level strategies at the business unit's functional
levels, such as marketing, finance, production, purchasing, HR, and IS. -
✔✔Functional Strategies
Often used to refer to strategic considerations at the functional level, with a day-
to-day, practical connotation. - ✔✔Tactics
Determines the effectiveness of the unit's business- and firm-level strategies, with
interdepartmental impact on operations and overall performance. -
✔✔Integration of Functional Strategies
Address a shorter time span and are more specific than business strategies,
focusing on strategy execution. - ✔✔Functional Strategies Time Span
Typically crafted by departmental managers responsible for implementing them,
after corporate and business strategies have been established. - ✔✔Functional
Strategy Development
Managers in all functional areas should understand how areas integrate and work
together to formulate functional strategies that fit together and support higher-
level strategies. - ✔✔Interrelationship Understanding
Summarizes the way functional strategies typically integrate with the business
strategy, as per Table 8.1. - ✔✔Porter's Cost Leadership and Differentiation
Strategies
,Emphasizes low-cost distribution and advertising, aligning with a low-cost
business strategy. - ✔✔Marketing Strategy - Low-Cost
Emphasizes differentiated distribution and advertising on a large scale, aligning
with a differentiation business strategy. - ✔✔Marketing Strategy - Differentiation
Emphasizes differentiated distribution and advertising on a large scale at the
lowest cost possible, aligning with a low-cost-differentiation business strategy. -
✔✔Marketing Strategy - Low-Cost-Differentiation
Lowers financial costs by borrowing when credit costs are low and issuing stock
when the market is strong, aligning with a low-cost business strategy. -
✔✔Finance Strategy - Low-Cost
Emphasizes obtaining resources and funding output improvements for
innovations even when financial costs may be high, aligning with a differentiation
business strategy. - ✔✔Finance Strategy - Differentiation
Emphasizes obtaining resources and funding output improvements or innovations
at the lowest possible cost, aligning with a low-cost-differentiation business
strategy. - ✔✔Finance Strategy - Low-Cost-Differentiation
Emphasizes operation efficiencies through learning, economics of scale, and
capital-labor substitution possibilities, aligning with a low-cost business strategy. -
✔✔Production Strategy - Low-Cost
Emphasizes quality in operations even when the cost of doing so is high, aligning
with a differentiation business strategy. - ✔✔Production Strategy - Differentiation
, Emphasizes quality in operations when the cost of doing so is relatively low,
aligning with a low-cost-differentiation business strategy. - ✔✔Production
Strategy - Low-Cost-Differentiation
Purchases at low costs through quality discounts, operates storage and
warehouse facilities, and controls inventory efficiently, aligning with a low-cost
business strategy. - ✔✔Purchasing Strategy - Low-Cost
Purchases high-quality inputs even if they cost more, conducts storage,
warehouse, and inventory activities with extensive care, aligning with a
differentiation business strategy. - ✔✔Purchasing Strategy - Differentiation
Purchases high-quality inputs but only if costs are low, conducts storage,
warehouse, and inventory activities with care but only if costs are relatively low,
aligning with a low-cost-differentiation business strategy. - ✔✔Purchasing
Strategy - Low-Cost-Differentiation
Emphasizes process R & D aimed at lowering costs of operation and distribution,
aligning with a low-cost business strategy. - ✔✔Research and Development
Strategy - Low-Cost
Emphasizes product and service R & D aimed at enhancing the outputs of the
business, aligning with a differentiation business strategy. - ✔✔Research and
Development Strategy - Differentiation
Support corporate- and business-level strategies at the business unit's functional
levels, such as marketing, finance, production, purchasing, HR, and IS. -
✔✔Functional Strategies
Often used to refer to strategic considerations at the functional level, with a day-
to-day, practical connotation. - ✔✔Tactics
Determines the effectiveness of the unit's business- and firm-level strategies, with
interdepartmental impact on operations and overall performance. -
✔✔Integration of Functional Strategies
Address a shorter time span and are more specific than business strategies,
focusing on strategy execution. - ✔✔Functional Strategies Time Span
Typically crafted by departmental managers responsible for implementing them,
after corporate and business strategies have been established. - ✔✔Functional
Strategy Development
Managers in all functional areas should understand how areas integrate and work
together to formulate functional strategies that fit together and support higher-
level strategies. - ✔✔Interrelationship Understanding
Summarizes the way functional strategies typically integrate with the business
strategy, as per Table 8.1. - ✔✔Porter's Cost Leadership and Differentiation
Strategies
,Emphasizes low-cost distribution and advertising, aligning with a low-cost
business strategy. - ✔✔Marketing Strategy - Low-Cost
Emphasizes differentiated distribution and advertising on a large scale, aligning
with a differentiation business strategy. - ✔✔Marketing Strategy - Differentiation
Emphasizes differentiated distribution and advertising on a large scale at the
lowest cost possible, aligning with a low-cost-differentiation business strategy. -
✔✔Marketing Strategy - Low-Cost-Differentiation
Lowers financial costs by borrowing when credit costs are low and issuing stock
when the market is strong, aligning with a low-cost business strategy. -
✔✔Finance Strategy - Low-Cost
Emphasizes obtaining resources and funding output improvements for
innovations even when financial costs may be high, aligning with a differentiation
business strategy. - ✔✔Finance Strategy - Differentiation
Emphasizes obtaining resources and funding output improvements or innovations
at the lowest possible cost, aligning with a low-cost-differentiation business
strategy. - ✔✔Finance Strategy - Low-Cost-Differentiation
Emphasizes operation efficiencies through learning, economics of scale, and
capital-labor substitution possibilities, aligning with a low-cost business strategy. -
✔✔Production Strategy - Low-Cost
Emphasizes quality in operations even when the cost of doing so is high, aligning
with a differentiation business strategy. - ✔✔Production Strategy - Differentiation
, Emphasizes quality in operations when the cost of doing so is relatively low,
aligning with a low-cost-differentiation business strategy. - ✔✔Production
Strategy - Low-Cost-Differentiation
Purchases at low costs through quality discounts, operates storage and
warehouse facilities, and controls inventory efficiently, aligning with a low-cost
business strategy. - ✔✔Purchasing Strategy - Low-Cost
Purchases high-quality inputs even if they cost more, conducts storage,
warehouse, and inventory activities with extensive care, aligning with a
differentiation business strategy. - ✔✔Purchasing Strategy - Differentiation
Purchases high-quality inputs but only if costs are low, conducts storage,
warehouse, and inventory activities with care but only if costs are relatively low,
aligning with a low-cost-differentiation business strategy. - ✔✔Purchasing
Strategy - Low-Cost-Differentiation
Emphasizes process R & D aimed at lowering costs of operation and distribution,
aligning with a low-cost business strategy. - ✔✔Research and Development
Strategy - Low-Cost
Emphasizes product and service R & D aimed at enhancing the outputs of the
business, aligning with a differentiation business strategy. - ✔✔Research and
Development Strategy - Differentiation
