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Question: 1.Which of the following is not an action that a company can take to do a better job than rivals of performing value chain activities more cost effectively?A Striving to capture all available economies of scale and learning/experience curve effectsB Trying to operate facilities at full capacityC Adopting labor-saving operating methodsD Improving supply chain efficiencyE Redesigning products to eliminate features that might have market appeal but excessively increase production costsQuestion: 2.To succeed with a low-cost provider strategy, company managers have toA Pursue backward or forward integration to detour suppliers or buyers with considerable bargaining power and leverageB Move the performance of most all value chain activities to low-wage countriesC Sell direct to users of their product or service and eliminate use of wholesale and retail intermediariesD Do two things: (1) perform value chain activities more cost-effectively than rivals and (2) be proactive in revamping the firm’s overall value chain to eliminate or bypass nonessential cost-producing activitiesE Outsource the biggest majority of value chain activitiesQuestion:3. Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value chain?A Cutting out distributors and dealers by selling direct to customersB Replacing certain value chain activities with faster and cheaper online technologyC Increasing production capacity and then striving hard to operate at full capacityD Relocating facilities so as to curb the need for shipping and handling activitiesE Streamlining operations by eliminating low value-added or unnecessary work steps and activitiesQuestion:4. Being the overall low-cost provider in an industry has the attractive advantage ofA Building strong customer loyalty and locking customers into its product (because customers have such high switching costsB Giving the firm a very appealing brand imageC Putting a firm in a position to win the business of price-sensitive customers, set the floor on market price, and still earn a profitD Putting the company in a strong position to be more profitable than companies pursuing a differentiation strategyE Greatly reducing the strong bargaining power of key suppliersQuestion:5. The production emphasis of a company pursuing a broad differentiation strategy usually involvesA Eliminating cost reduction and decreasing quality and essential features to boost profitabilityB Strong efforts to be a leader in manufacturing process innovationC Efforts to build in whatever differentiating features that buyers are willing to pay for and striving for product superiorityD Aggressive pursuit of economies of scale and experience curve effects
E Developing a distinctive competence in zero-defect manufacturing techniquesQuestion:6. A focused differentiation strategy aims at securing competitive advantageA By providing niche members with a top-of-the-line product at a premium priceB By catering to buyers looking for an upscale product at an attractively low priceC With a product offering carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyersD By developing product attributes that no other company in the industry hasE By convincing a narrow, well-defined group of buyers that the company has a true world class productQuestion: 7.Broad differentiation strategies generally work best in market circumstances whereA Buyer needs and preferences are too diverse to be fully satisfied by a standardized productB Most buyers have similar needs and use the product in the same waysC The products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apartD Buyers are price sensitive and buying switching costs are quite lowE The five competitive forces are strongQuestion:8. Which of the following is not one of the pitfalls of pursuing a differentiation strategy?A Trying to strongly differentiate the company's product from those of rivals rather than be content with weak product differentiationB Overdifferentiating so that the features and attributes incorporated exceed buyer needs and requirementsC Trying to charge too high a price premium for the differentiating featuresD Differentiating on features or attributes that rivals can easily copyE Overspending on efforts to differentiate the company’s product offeringQuestion: 9.A company achieves best-cost provider status byA Selling a product with the best cost at the best priceB Having the best cost (as compared to rivals) for each activity in the industry's value chainC Providing buyers with the best attributes at the best costD Incorporating attractive or upscale attributes into its product offering at a lower cost than rivalsE Doing a better job than rivals of adopting the best operating practicesQuestion:10. A company's competitive strategy deals with A Management’s game plan for competing successfully – the specific efforts to please customers, offensive and defensive moves to counter the maneuvers of rivals, the responses to current market conditions, and the initiatives undertaken to improve the company’s market positionB What its strategy will be in such functional areas as R&D, production, sales and marketing, distribution, finance and accounting, and so onC Its efforts to change its position on the industry’s strategic group mapD Its plans for entering into strategic alliances, utilizing mergers or acquisitions to strengthen its market position, outsourcing some in-house activities to outside specialists, and integrating forward or backwardE Its plans for overcoming the five competitive forces
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