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Bus-WES
Exam 2. Ch 5-8
| Question | Answer |
|---|---|
| A company's competitive strategy deals with | specifics of managemnt's game plan for comepting successfully-how it intends to please sustomers, offensice and defensive moves to counter with, etc. |
| The two biggest factors that distinguish one competitive strategy from another boil down t | whether a company’s market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low costs or differentiation. |
| Which of the following is not one of the five basic competitive strategy options? | A superior customer service strategy, A focused differentiation strategy, A best-cost provider strategy, A broad differentiation strategy. |
| A low-cost provider's basis for competitive advantage is | meaningfully lower overall costs than rivals. |
| The two major avenues for achieving a cost advantage over rivals include | must either do a better job than rivals of performing value chain activities more cost-effectively and/or else revamp its value chain to eliminate or bypass some cost-producing activities. |
| The essence of a broad differentiation strategy is to | a company is able to either keep the costs of achieving differentiation below the added price premium the differentiating attributes can command in the marketplace |
| among the options or possibilities for managing value chain activities in a way that creates desirable differentiating attributes, enhances the value delivered to customers, differentiates the company's service offering from the offerings of rivals? | Collabrating with suppliers, New produt R&D, quality improvement, increasing on marketing, better job at customer service. |
| What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is | their concentrated attention on serving the needs of buyers in a narrow piece of the overall market |
| A focused low-cost strategy seeks to achieve competitive advantage by | meaningfully lower overall costs than competitors. involves a serving buyers in the target market niche at a lower cost and a lower price than rival competitors. |
| A company achieves best-cost provider status by | When a company can incorporate appfeatures, good-to-excellent product performance or quality, or more satisfying sustomer service into its product offering at a lower cost than rivals. |
| Vertical integration strategies | Can aim at full integration, participating in all stages of the industry. Extends a firm's competitive and operating scope within the same industry. |
| A strategic alliance | is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control, and mutual dependence. |
| The best strategic alliances | are highly selective, focusing on particular value chain activities and on obtaining a particular competitive benefit |
| The difference between a merger and an acquisition is | A MERGER is the combining more in combing tow or more companies into a single entity. An ACQUISITION is a combination in which on e company, the acquirer,purchases and absorbs the operations of another. |
| Because when to make a strategic move can be just as important as what move to make, a company's best option with respect to timing is | To carefully weigh the first-mover advantages against the first-mover disadvantages and act accordingly |
| Which of the following is an accurate statement as concerns crafting strategies to compete in the markets of foreign countries? | Maintain a national production base, license forigen firms ot use the companys technology, employ a franchising strategy, adopt a multicountry strategy, global staategy, acqutions. |
| Which of the following is a typical reason why companies opt to sell their products/services in some or many countries? | Gain access to new cusotmers, achieve lower costs, further exploit capabilities, and strengths, to spread business rusk across wude market base |
| A "think local, act local" multicountry type of strategy | becomes more appealing the bigger the country-to-country differences in buyer tastes, cultural traditions, and market conditions. |
| Cross-country differences in wage rates, worker productivity, energy costs, environmental regulations, tax rates, inflation rates, and the like | from country to country are often so big that a company's operating costs and profitability are significantly impacted by where its production, distribution ,and customer service actives are located. |
| Companies that export goods to foreign countries | always gain in competitiveness when the currency of the country in which the goods are manufactured grows weaker relative to the currencies of currencies of countries to which the goods are being exported. |
| Multicountry competition exists when | competition in one national market is not closely connected to competition in another national market. Self-contained country markets. |
| The defining characteristic of global competition is | a market situation where competitive conditions across national markets are linked strongly enough to form a true international or world market and where leading competitors compete head to head in many different countries. |
| Which of the following is not one of the primary strategy options for competing in the markets of foreign countries? | An international offensive strategy |
| The advantages of using a franchising strategy to pursue opportunities in foreign markets include | having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchiser to expend only the resources to recruit, train, and support foreign franchisees. |
| A "think global, act global" approach to strategy-making is preferable to a "think local, act local" approach when | country-to-country differences are small enough to be accommodated with the framework of a mostly uniform global strategy. |
| The classic or most pervasive reason for locating an activity in a particular country is | Low cost |
| Profit sanctuaries | Are country markets in which a company derives substantial profits because of its strong or protected market position. |
| In principle, a company's move to diversify into a new business cannot be considered successful unless it | results in added long-tern economic value for shareholders |
| To create value for shareholders via diversification, a company must | Build a multibusiness company where the whole is greater than the sum of its parts. |
| The three tests for judging whether a particular move to diversify into a new business can produce added long-term economic value for shareholders are | Industry attractiveness test, the cost-of-entry test, and the better-off test |
| The essential requirement for different businesses to be "related" is that | their value chains posses competitively valuable cross-business relationships that present opportunities for the businesses to perform better under the same corporate umbrella. |
| Different businesses are said to be "unrelated" when | When activities comprising their respective value chains are so dissimilar that no competitively valuable cross-business relations are present. |
| A big advantage of related diversification is that | Builds shareholders value by leveraging theses cross-business relationships into competitive advantage, thus allowing the company as a whole to perform better than just the sum of its individual businesses. |
| Economies of scope | stem from strategic fit efficiencies along the value chains of related businesses. |
| The basic premise of unrelated diversification is that | Any company that can be acquired on good financial terms and that has satisfactory growth and earnings potential represents a good acquisition and a good business opportunity |
| A business unit's relative market share is | the ratio of its market share to the market share held by the largest rival firm in the industry, market share measured in unit volue not dollars. |
| The nine-cell industry attractiveness-competitive strength matrix helps identify which of a diversified company's various businesses | allocate their resources, to high opportunity or low opportunity |
| The difference between a "cash-cow" business and a "cash hog" business is that | A cash cow business produces large internal cash flows over and above what is needed to build and maintain the business whereas the internal cash flows of a cash hog business are too small to fully fund its operating needs and capital requirements |
| The competitive advantage of a best-cost provider is | lower costs than rivals in incorporating upscale attributes, putting the company in a position to under price rivals whose products have similar upscale attributes. |
| The target market of a best-cost provider is | Value-conscious buyers |
| A company's menu of strategic choices to supplement its decision to employ one of the five basic competitive strategies does include | Low cost provider, broad differentiation, focused low cost, focoused didderentaion, best cost provider. |
| The best strategic offensives entail | Focusing relentlessly on building competitive advantage, employing the element of surprise as opposed to doing what rivals expect, applying resources where rivals are least able and being impatient with the status quo. |
| A blue ocean type of offensive strategy | involves abandoning efforts to beat out competitors in existing markets and, instead, inventing a new industry or distinctive market segment |
| The best targets for an offensive-minded company to target for attack include | Attack rivals in those competitive areas where they are weak. |
| One very important advantage of a product-information-only Web site strategy is | Avoiding channel conflict |
| The advantages of using online sales at the company's Web site as a minor distribution channel include. | When Profit margins from online sales are bigger than wholesale/retail, website helps buyers learn about product ease of purchasing, when selling directly to end users allows a manufacturer to maek greater use of build to order manufacturing and assembly. |
| Two big appeals of a brick-and-click strategy are | They are an economic means of expanding a company’s geographic reach and they give both existing and potential cutomers another choice of how to communicate with the company, shop for product info and make purchaes, or resolve customer-service problems |
| Outsourcing strategies | Involve a conscious decision to abandon or forgo attempts to perform certain value chain activities internally ad to instead farm them out to outside specialists and strategic allies. |
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irfanmawani