A) firms have the right to differentiate their product/service offerings to such a great degree that it erodes performance.

B) firms that emphasize assistance activities also a lot will certainly suffer performance declines.

C) firms that overemphasize as a whole expense management thoughout their worth chain can suffer low performance.

D) the crucial to success is efficient production operations.


C) firms that overemphasize as a whole expense leadership thoughout their worth chain have the right to suffer low performance.

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The major aim of strategic monitoring at the company level is

A) maximizing risk-return tradeoffs through diversification.

B) achieving a low price place.

C) maximizing differentiation of products and/or solutions.

D) achieving competitive advantage(s)


In the long run, businesses without a competitive advantage are unlikely to earn even more than “normal” earnings. Regular revenues are

A) what one would certainly get on UNITED STATE Treasury securities.

B) profits obtained by corporations in the normal course of business.

C) earnings one would certainly expect to earn on investments that have a comparable level of danger.

D) revenues earned by a corporation on a diversified portfolio of stocks.


Convincing rivals not to enter a price battle, defense from customer press to lower prices, and also the ability to better withstand also price increases from companies characterize which type of competitive strategy?

A) as a whole expense management

B) differentiation

C) differentiation focus

D) price leadership emphasis


Which of the following is a risk (or pitfall) of price leadership?

A) price cutting may result in the loss of desirable functions

B) attempts to continue to be ahead of the competition may cause gold plating

C) cost differences rise as the sector matures

D) producers are even more able to withstand also increases in suppliers" price


A production business pursuing expense leadership will most likely

A) emphasis on a narrow sector segment.

B) depend on experience effects to raise efficiency.

C) usage declaring to develop brand image.

D) put hefty emphasis on product engineering.


Main worth chain tasks that involve the efficient layout of receiving dock operations (inbound logistics) and also support value chain activities that incorporate expertise in process engineering (technology development) characterize what generic strategy?

A) differentiation

B) overall expense management

C) differentiation focus

D) stuck-in-the-middle


One aspect of making use of a price leadership strategy is that experience effects may result in reduced prices. Experience effects are completed by

A) hiring even more knowledgeable personnel.

B) repeating a procedure till a task becomes much easier.

C) spanalysis out a offered price or investment over a greater volume.

D) competing in an industry a long time.


The experience curve suggests that cutting prices is a great strategy

A) if it have the right to induce higher demand also and also thereby help a firm travel dvery own the suffer curve quicker.

B) in markets identified by high economic situations of scale.

C) in the maturity phase of the industry life cycle.

D) in the decline phase of the industry life cycle.


A firm can accomplish differentiation via every one of the following means other than

A) improving brand picture.

B) better customer business.

C) offering reduced prices to constant customers.

D) adding added product features.


High product differentiation is generally accompanied by

A) better market share.

B) lessened focus on competition based on price.

C) better profit margins and reduced costs.

D) significant economies of scale.


Support value chain tasks that involve great applications design assistance (innovation development) and also facilities that promote a positive firm photo (firm infrastructure) characterize what generic strategy?

A) differentiation

B) as a whole expense leadership

C) differentiation focus

D) stuck-in-the middle


Which of the following is false concerning exactly how a differentiation strategy deserve to help a firm to enhance its competitive position vis à vis Porter"s 5 forces?

A) by enhancing a firm"s margins, it prevents the require for a low price position

B) it helps a firm to deal with supplier power and reduces buyer power given that buyers absence equivalent choices

C) supplier power is raised bereason providers will certainly have the ability to charge better prices for their inputs

D) firms will certainly enjoy high customer loyalty, therefore suffering less hazard from substitutes than its rivals


C) supplier power is enhanced bereason service providers will certainly have the ability to charge greater prices for their inputs

A differentiation strategy enables a company to resolve the 5 competitive pressures by

A) lessening competitive rivalry by separating itself.

B) having brand-loyal customers end up being even more sensitive to prices.

C) raising economic situations of scale.

D) serving a broader market segment.


C) raising economic situations of scale.

All of the adhering to are potential pitfalls of a differentiation strategy except:

A) uniqueness that is not practical.

B) also high a price premium.

C) all rivals share a prevalent input or raw product.

D) perceptions of differentiation might differ between buyers and sellers.


C) all rivals share a common input or raw material.

Which statement concerning competitive advantages is true?

A) If a number of competitors go after equivalent differentiation tactics, they might all be perceived as amounts to in the mind of the customer.

B) With an all at once expense management strategy, firms require not be involved with parity on differentiation.

C) In the lengthy run, a company through one or even more competitive benefits is most likely destined to earn normal earnings.

D) attaining multiple types of competitive advantage is a recipe for failure.


A) If numerous rivals pursue similar differentiation tactics, they may all be regarded as amounts to in the mind of the consumer.

A narrowhead industry emphasis is to a differentiation-based strategy as a

A) broadly-characterized target industry is to a price management strategy.

B) development sector is to a differentiation-based strategy.

C) expansion market is to a cost-based strategy.

D) technological creation is to a cost-based strategy.


A) broadly-defined taracquire sector is to a price leadership strategy.

A firm following a focus strategy

A) should emphasis on governmental regulations.

B) should emphasis on a market segment or group of segments.

C) must emphasis on the increasing price of inputs.

D) need to protect against entering worldwide sectors.


B) should emphasis on a sector segment or group of segments.

All of the adhering to are potential pitfalls of a emphasis strategy except

A) erosion of cost advantages within the narrowhead segment.

B) all rivals share a common input or raw product.

C) also product and also business offerings that are highly focused are subject to competition from new entrants and from imitation.

D) foccustomers deserve to come to be also focused to fulfill buyer needs.


B) all rivals share a widespread input or raw material.

Research has repetitively presented that firms that attain both price and differentiation advantages tend to percreate

A) at about the very same level as firms that achieve either price or differentiation advantages.

B) about the same as firms that are “stuck-in-the-middle.”

C) reduced than firms that accomplish differentiation benefits however greater than firms that accomplish price advantages.

D) better than firms that accomplish either a expense or a differentiation benefit.


D) higher than firms that attain either a cost or a differentiation advantage.

The message discusses 3 philosophies to combining in its entirety price leadership and also differentiation competitive advantages. These are the following except

A) automated and also flexible manufacturing devices.

B) exploiting the profit pool concept for competitive benefit.

C) coordinating the “extended” value chain by method of indevelopment technology.

D) deriving benefits from very focused and high innovation industries.


D) deriving benefits from very focused and high modern technology markets.

A ____________ can be defined as the total profits in an industry at all points along the industry"s value chain.

A) profit maximizer

B) revenue enhancer

C) profit pool

D) profit outsourcing


C) profit pool

All of the complying with are potential pitfalls of an integrated in its entirety low price and differentiation strategy except:

A) firms that fail to attain both strategies may finish up with neither and also come to be “stuck-in-the-middle.”

B) targeting also big a sector that reasons unit expenses to boost.

C) underestimating the challenges and expenses connected via coordinating value-creating tasks in the extfinished worth chain.

D) miscalculating resources of revenue and profit pools in the firm"s sector.


B) targeting also large a market that reasons unit prices to increase.

Which of these statements regarding the industry life cycle is correct?

A) Part of the power of the industry life cycle is its ability to serve as a short-run forecasting device.

B) Trends said by the market life cycle design are mostly not reversible nor repeatable.

C) It provides a “shorthand” for reasoning around differences in strategic situations.

D) It points out the should keep a differentiation advantage and also a low cost benefit all at once.


C) It offers a “shorthand” for thinking around differences in strategic instances.

Which of the following statements about the arrival stage of the market life cycle is true?

A) It produces fairly big, positive cash flows.

B) Strong brand recognition hardly ever serves as a vital switching price.

C) Market share gains by pioneers are normally quickly continual for many kind of years.

D) Products or solutions offered by pioneers might be viewed as identified simply bereason they are brand-new.


D) Products or services available by pioneers might be regarded as differentiated sindicate bereason they are new.

In the ______ stage of the market life cycle, the emphasis on product style is extremely high, the intensity of competition is low, and also the sector expansion rate is low.

A) arrival

B) development

C) maturity

D) decline


A) introduction

Which of the complying with descriptions of a product in the growth stage is true?

A) There are few develops of differentiation, focus is put on efficiency, and also there is a prospering trend to compete on the basis of price.

B) There is an emphasis on product variety, prices are declining quickly, and although the firm might be making a profit, cash flows may be negative.

C) Tbelow is an obsolescence of innovations, minimal capital investment is required, and consumer demand is satiated.

D) Tright here is a propensity to organize on to competitive benefits, pricing can be volatile, and there is an opportunity to establish solid brand acknowledgment.


B) Tright here is an emphasis on product range, prices are declining promptly, and although the firm might be making a profit, cash flows may be negative.

The development sector is characterized by

A) “in-kind” competition (from the exact same type of product).

B) premium pricing.

C) a prospering trend to complete on the basis of price.

D) retaliation by competitors whose customers are stolen.


B) premium pricing.

Which of the following is taken into consideration an accurate statement for a product in the expansion period of its life cycle?

A) It is challenging to obtain sector share in development industries.

B) Tright here is more price pressure in expansion markets.

C) It is simpler to build modern technology in the growth phase.

D) Customers are brand loyal in the development phase.


C) It is less complicated to construct modern technology in the development phase.

In the _______ stage of the industry life cycle, tright here are many type of segments, competition is very intense, and the focus on procedure design is high.

A) development

B) growth

C) maturity

D) decrease


C) maturity

In a offered industry, key technology no longer has actually patent defense, experience is not an benefit, and there is a growing need to complete on price. What stage of its life cycle is the industry in?

A) introduction

B) growth

C) maturity

D) decline


C) maturity

A market that mainly competes on the basis of price and has stagnant expansion is characteristic of what life cycle stage:

A) arrival

B) development

C) maturity

D) decline


C) maturity

As sectors mature, firms must attempt to contend on the basis of _______.

A) quick response

B) differentiation

C) expense management

D) market focus


B) differentiation

As industries mature

A) prices proceed to increase.

B) application for patents increase.

C) differentiation opportunities rise.

D) tright here is raising emphasis on performance.


D) tbelow is raising emphasis on performance.

The dimension of pricing and differentiation benefits in between competitors decreases in which stage of the market life cycle?

A) introduction

B) development

C) maturity

D) decrease


C) maturity

Which of the adhering to is the majority of often true of mature markets?

A) Some rivals reap a far-reaching operating advantage due to boosting endure results.

B) The industry supports premium pricing, which attracts additional competitors.

C) Advantperiods that cannot be duplicated by various other rivals are challenging to attain.

D) The magnitude of pricing distinctions and product differentiation is larger than in the expansion stage.


C) Advantages that cannot be duplicated by other competitors are hard to attain.

In the _________ stage of the market life cycle, there are few segments, the focus on procedure architecture is low, and also the significant useful locations of issue are general administration and also finance.

A) advent

B) growth

C) maturity

D) decline


D) decline

The the majority of most likely time to seek a harvest strategy is in a situation of

A) high expansion.

B) strong competitive advantage.

C) mergers and also acquisitions.

D) decline in the sector life cycle.


D) decline in the market life cycle.

During the decline stage of the industry life cycle, _______ refers to obtaining as much profit as feasible and also requires that prices be lessened conveniently.

A) keeping

B) harvesting

C) exiting

D) consolidating


B) harvesting

Research shows that the following are all methods offered by firms involved in effective turnarounds other than

A) ascollection and also expense surgical procedure.

B) selective product and sector pruning.

C) worldwide growth.

D) piecemeal productivity improvements.


C) global expansion.

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Piecemeal performance renovations throughout a turnabout commonly does not involve

A) company procedure redesign.

B) raised capacity utilization.

C) benchmarking.

D) development of a firm"s product industry scope.


D) growth of a firm"s product market scope.

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