Chapter 6 BSG Questions and Answers Rated A

Once a company has decided to employ one of the five basic competitive strategies, then it must also consider such additional strategic choices as A. whether and when to go on the offensive and initiate aggressive strategic moves to improve the company's market position. B. whether to outsource certain value chain activities or perform them in-house. C. whether to form strategic alliances and collaborative partnerships to add to its accumulation of resources and competitive capabilities. D. whether to integrate forward or backward into more stages of the industry value chain. E. All of the above. AnsE. A company's menu of strategic choices to supplement its decision to employ one of the five basic competitive strategies does not include A. whether and when to employ defensive strategies to protect the company's market position. B. whether to integrate backward or forward into more stages of the industry value chain. C. whether to employ a preemptive strike type of green ocean strategy. D. whether and when to go on the offensive and initiate aggressive strategic moves to improve the company's market position. E. whether to bolster the company's market position via acquisition or merger and/or whether to enter into strategic alliances or partnership arrangements with other enterprises. AnsC. Which of the following is not among the principal offensive strategy options that a company can employ? A. Leapfrogging competitors by being the first adopter of next-generation technologies or being first to market with next-generation products B. Offering an equally good or better product at a lower price C. Blocking the avenues open to challengers D. Attacking the competitive weakness of rivals E. Capturing unoccupied or less contested territory by maneuvering around AnsC. Which one of the following is an example of an offensive strategy? A. Blocking the avenues open to challengers B. Signaling challengers that retaliation is likely C. Pursuing continuous product innovation to draw sales and market share away from less innovative rivals D. Introducing new features or models to fill vacant niches in its overall product offering and better match the product offerings of key rivals E. Maintaining a war chest of cash and marketable securities AnsC. A hit-and-run or guerrilla warfare type offensive strategies involve A. random offensive attacks used by a market leader to steal customers away from unsuspecting smaller rivals. B. undertaking surprise moves to secure an advantageous position in a fast-growing and profitable market segment; usually the guerrilla signals rivals that it will use deep price cuts to defend its newly won position. C. work best if the guerrilla is the industry's low-cost leader. D. pitting a small company's own competitive strengths head-on against the strengths of much larger rivals. E. unexpected attacks (usually by a small competitor) to grab sales and market share from complacent or distracted rivals. AnsE. Launching a preemptive strike type of offensive strategy entails A. cutting prices below a weak rival's costs. B. moving first to secure an advantageous competitive assets that rivals can't readily match or duplicate.