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Mixed Quiz
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1

Strategic analysis and choice is the phase of the strategic management process when business managers examine and choose a business strategy that allows their business to maintain or create a sustainable competitive advantage.
A)True
B)False
2

Businesses become successful because they posses some advantage relative to their customers.
A)True
B)False
3

Businesses that lack a cost or differentiation advantage usually experience average or below-average profitability.
A)True
B)False
4

Differentiation is the extent to which a business concentrates on a narrowly defined market.
A)True
B)False
5

Mature industries are newly formed or re-formed industries that typically are created by technological innovation, newly emerging customer needs, or other economic or sociological changes.
A)True
B)False
6

Which of the following is NOT a source of competitive advantage?
A)The business's cost structure
B)Its ability to differentiate the business from competitors
C)Its ability to be a follower of trends
D)All of the above are sources of competitive advantage
7

Which of the following is an advantage provided by low-cost activities?
A)Low-cost advantages that increase the likelihood of pricing pressure from buyers
B)Truly sustained low-cost advantages may push rivals into other areas, lessening price competition
C)New entrants competing on price must face an entrenched cost leader with the experience to replicate every cost advantage
D)Low-cost advantages should increase the attractiveness of substitute products
8

Which of the following is NOT true of cost leadership?
A)Many cost-saving activities are easily duplicated
B)Exclusive cost leadership can become a trap
C)Obsessive cost leadership can shrink other cost advantages involving key product attributes
D)Cost differences seldom decline over time
9

When a business successfully differentiates itself
A)rivalry is increased
B)rivalry is reduced
C)rivalry remains unchanged
D)there is no effect on rivalry
10

When a business successfully differentiates itself
A)brand loyalty is hard for newcomers to overcome
B)brand loyalty is easy for newcomers to overcome
C)brand loyalty is hard for customers to overcome
D)brand loyalty becomes irrelevant
11

For effectively differentiated products
A)buyers are insensitive to prices
B)buyers are less sensitive to prices
C)buyers are more sensitive to prices
D)buyer sensitivity is not an issue
12

Which of the following statements is TRUE of the risks of a differentiation strategy?
A)Imitation broadens perceived differentiation, rendering differentiation meaningless
B)Technological changes may nullify past investments or learning
C)The cost differences between low-cost competitors and the differentiated business becomes too narrow for differentiation to hold brand loyalty
D)All of the above statements are true
13

Speed-based competitive advantage can be created around
A)competitor responsiveness
B)product enrichment cycles
C)product or service improvements
D)all of the above
14

Typical industry settings include
A)emerging industries
B)concentrated industries
C)local industries
D)multinational industries
15

Which of the following is NOT a business strategy requirement in emerging industries?
A)The ability to slowly improve product quality and performance features
B)Advantageous relationships with key suppliers and promising distribution channels
C)The ability to forecast future competitors and the strategies they are likely to employ
D)The ability to establish the firm's technology as the dominant one before technological uncertainty decreases
16

Pruning the product line is a strategy used in what industry environment?
A)Emerging
B)Maturity
C)Declining
D)Fragmented
17

______ is the extent to which a business concentrates on a narrowly defined market.
A)Differentiation
B)Scope
C)Focus
D)None of the above
18

Which of the following is a focus strategy that can be pursued in a fragmented industry?
A)Specialization by product type
B)Specialization by customer type
C)Specialization by type of order
D)All of the above
19

Which of the following is NOT an option that can be used to pursue global market coverage?
A)License domestic firms to produce and distribute the firm's products
B)Maintain a domestic production base and export products to foreign countries
C)Establish foreign-based plants and distribution to compete directly in the markets of one or more foreign countries
D)All of the above are options
20

__________ is directed at competing worldwide in the full product line of the industry, often with plants in many countries, to achieve differentiation or an overall low-cost position.
A)Global focus strategy
B)National focus strategy
C)Protected niche strategy
D)Broad-line global competition







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