Question 1

Which of the following factors contributes to the success of the cost-leadership strategy of Ryanair airlines?

Accepted Answer

A)   The high input costs
B)   The luxury services
C)   The lower value gap
D)   The rock-bottom air faresE) A) and B)
F) A) and C)

Question 2

_____ is when a firm is searching for new knowledge that could enhance its future performance.

Accepted Answer

A)   Pattern recognition
B)   Reverse mentoring
C)   Exploitation
D)   ExplorationE) C) and D)
F) B) and C)

Question 3

What is a focused differentiation strategy? Explain with the help of an example.

Accepted Answer

Student answers will vary.
In a focused ...

Question 4

The productivity frontier represents a(n) :

Accepted Answer

A)   convex structure (bulging inward)  to capture the trade-off between value creation and production cost.
B)   set of best-in-class strategic positions the firm can take relating to value creation and low cost at a given point in time.
C)   output level a firm must operate at to achieve the break-even point.
D)   combination of two commodities that can be purchased with a fixed amount of budget.E) A) and D)
F) B) and D)

Question 5

When a firm applies its current knowledge to enhance its performance in the short term, it is referred to as _____.

Accepted Answer

A)   exploitation
B)   exploration
C)   pattern recognition
D)   lateral thinkingE) A) and B)
F) None of the above

Question 6

The concept of a(n) _____ attempts to capture both learning effects and process improvements at firms.

Accepted Answer

A)   managerial grid
B)   growth matrix
C)   experience curve
D)   diminishing utility curveE) A) and B)
F) All of the above

Question 7

What does a firm that pursues a cost-leadership strategy primarily focus on?

Accepted Answer

The goal of a cost-leadership strategy i...

Question 8

Why is keeping its costs the lowest in the industry not the only focus of a firm pursuing cost-leadership strategy?

Accepted Answer

The low-cost leader needs to stay vigila...

Question 9

How does the availability of complements act as value drivers?

Accepted Answer

The availability of complements is an im...

Question 10

What are the two different generic business strategies available to firms?

Accepted Answer

There are two fundamentally different ge...

Question 11

Green Curry is a restaurant that caters to the needs of a small percentage of highly health-conscious consumers.It has an all-organic, vegan menu.Since there are very few restaurants that offer the same unique services, customers are willing to pay a premium price for its products and services.In this scenario, Green Curry is following a _____.

Accepted Answer

A)   product diversification strategy
B)   liquidation strategy
C)   mass market strategy
D)   focused differentiation strategyE) A) and B)
F) All of the above

Question 12

How are the benefits different for cost leadership and differentiation strategies when analyzing the power of suppliers in an industry?

Accepted Answer

A cost leader is fairly well isolated fr...

Question 13

How do experience-curve and learning-curve effects help a business gain competitive advantage?

Accepted Answer

Learning by doing can drive down cost.As...

Question 14

How does quality act as a value and cost driver in integration strategy?

Accepted Answer

The quality of a product denotes its dur...

Question 15

BuyMart Inc.is a large chain of hypermarkets.It has cost benefits due to its extensive operation.The company's marketing and sales, logistics, administrative, and other such related costs get divided between a large number of product units stocked in its stores.This makes it difficult for smaller retail stores and supermarkets to compete against BuyMart's low prices.Thus, BuyMart has a competitive advantage due to its:

Accepted Answer

A)   superior customer service.
B)   time compression economies.
C)   economies of scale.
D)   learning-curve effects.E) All of the above
F) A) and B)

Question 16

Which of the following situations will have greater effects from economies of scale than from learning effects?

Accepted Answer

A)   When conducting surgeries
B)   When practicing corporate law
C)   When mass manufacturing pens
D)   When making business decisionsE) A) and D)
F) All of the above

Question 17

List how economies of scale contribute to a firm.

Accepted Answer

Economies of scale allow firms...

Question 18

What is higher value associated with?

Accepted Answer

Higher value tends to require higher cos...

Question 19

Which of the following sources of differential appeal is least effective in helping a firm sustain its advantage?

Accepted Answer

A)   Reputation for innovation
B)   Reputation for quality
C)   Superior customer experience
D)   Observable product featuresE) A) and D)
F) B) and D)

Question 20

As the cumulative output in a firm increases, managers learn how to optimize the production process and improve workers' performance through repetition.This drives down the per-unit cost.Which of the following phenomena is best described here?

Accepted Answer

A)   Learning effects
B)   Network effects
C)   Diseconomies of scale
D)   Productivity frontierE) None of the above
F) C) and D)

Exam 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Correct Answer
verified

What are the two different generic business strategies available to firms?

Correct Answer
verified
There are two fundamentally different ge...
View Answer

How are the benefits different for cost leadership and differentiation strategies when analyzing the power of suppliers in an industry?

Correct Answer
verified
A cost leader is fairly well isolated fr...
View Answer

As the cumulative output in a firm increases, managers learn how to optimize the production process and improve workers' performance through repetition.This drives down the per-unit cost.Which of the following phenomena is best described here?

Correct Answer
verified

List how economies of scale contribute to a firm.

Correct Answer
verified
Economies of scale allow firms...
View Answer

The concept of a(n) _____ attempts to capture both learning effects and process improvements at firms.

Correct Answer
verified

Which of the following situations will have greater effects from economies of scale than from learning effects?

Correct Answer
verified

What is higher value associated with?

Correct Answer
verified
Higher value tends to require higher cos...
View Answer

How do experience-curve and learning-curve effects help a business gain competitive advantage?

Correct Answer
verified
Learning by doing can drive down cost.As...
View Answer

Correct Answer
verified

Which of the following sources of differential appeal is least effective in helping a firm sustain its advantage?

Correct Answer
verified

Why is keeping its costs the lowest in the industry not the only focus of a firm pursuing cost-leadership strategy?

Correct Answer
verified
The low-cost leader needs to stay vigila...
View Answer

What does a firm that pursues a cost-leadership strategy primarily focus on?

Correct Answer
verified
The goal of a cost-leadership strategy i...
View Answer

When a firm applies its current knowledge to enhance its performance in the short term, it is referred to as _____.

Correct Answer
verified

Which of the following factors contributes to the success of the cost-leadership strategy of Ryanair airlines?

Correct Answer
verified

What is a focused differentiation strategy? Explain with the help of an example.

Correct Answer
verified
Student answers will vary.
In a focused ...
View Answer

How does the availability of complements act as value drivers?

Correct Answer
verified
The availability of complements is an im...
View Answer

The productivity frontier represents a(n) :

Correct Answer
verified

How does quality act as a value and cost driver in integration strategy?

Correct Answer
verified
The quality of a product denotes its dur...
View Answer

_____ is when a firm is searching for new knowledge that could enhance its future performance.

Correct Answer
verified

Exam 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Correct AnswerverifiedShow Answer

What are the two different generic business strategies available to firms?

Correct AnswerverifiedThere are two fundamentally different ge...View AnswerShow Answer

How are the benefits different for cost leadership and differentiation strategies when analyzing the power of suppliers in an industry?

Correct AnswerverifiedA cost leader is fairly well isolated fr...View AnswerShow Answer

As the cumulative output in a firm increases, managers learn how to optimize the production process and improve workers' performance through repetition.This drives down the per-unit cost.Which of the following phenomena is best described here?

Correct AnswerverifiedShow Answer

List how economies of scale contribute to a firm.

Correct AnswerverifiedEconomies of scale allow firms...View AnswerShow Answer

The concept of a(n) _____ attempts to capture both learning effects and process improvements at firms.

Correct AnswerverifiedShow Answer

Which of the following situations will have greater effects from economies of scale than from learning effects?

Correct AnswerverifiedShow Answer

What is higher value associated with?

Correct AnswerverifiedHigher value tends to require higher cos...View AnswerShow Answer

How do experience-curve and learning-curve effects help a business gain competitive advantage?

Correct AnswerverifiedLearning by doing can drive down cost.As...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following sources of differential appeal is least effective in helping a firm sustain its advantage?

Correct AnswerverifiedShow Answer

Why is keeping its costs the lowest in the industry not the only focus of a firm pursuing cost-leadership strategy?

Correct AnswerverifiedThe low-cost leader needs to stay vigila...View AnswerShow Answer

What does a firm that pursues a cost-leadership strategy primarily focus on?

Correct AnswerverifiedThe goal of a cost-leadership strategy i...View AnswerShow Answer

When a firm applies its current knowledge to enhance its performance in the short term, it is referred to as _____.

Correct AnswerverifiedShow Answer

Which of the following factors contributes to the success of the cost-leadership strategy of Ryanair airlines?

Correct AnswerverifiedShow Answer

What is a focused differentiation strategy? Explain with the help of an example.

Correct AnswerverifiedStudent answers will vary.In a focused ...View AnswerShow Answer

How does the availability of complements act as value drivers?

Correct AnswerverifiedThe availability of complements is an im...View AnswerShow Answer

The productivity frontier represents a(n) :

Correct AnswerverifiedShow Answer

How does quality act as a value and cost driver in integration strategy?

Correct AnswerverifiedThe quality of a product denotes its dur...View AnswerShow Answer

_____ is when a firm is searching for new knowledge that could enhance its future performance.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
There are two fundamentally different ge...
View Answer

Correct Answer
verified
A cost leader is fairly well isolated fr...
View Answer

Correct Answer
verified

Correct Answer
verified
Economies of scale allow firms...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Higher value tends to require higher cos...
View Answer

Correct Answer
verified
Learning by doing can drive down cost.As...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The low-cost leader needs to stay vigila...
View Answer

Correct Answer
verified
The goal of a cost-leadership strategy i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Student answers will vary.
In a focused ...
View Answer

Correct Answer
verified
The availability of complements is an im...
View Answer

Correct Answer
verified

Correct Answer
verified
The quality of a product denotes its dur...
View Answer

Correct Answer
verified