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Chapter 4Business-Level Strategy TRUE/FALSE 1. The goal of business-level strategy is to earn above-average returns. ANS: T PTS: 1 DIF: Medium REF: 98 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions 2. A business-level strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage in specific product markets. ANS: T PTS: 1 DIF: Medium REF: 98 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions 3. Every firm uses all levels of strategy: corporate, acquisition and restructuring, international and co- operative. ANS: F PTS: 1 DIF: Easy REF: 98-99 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions 4. Business-level strategy can be thought of as the firms core strategy. ANS: T PTS: 1 DIF: Medium REF: 99 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing strategy & innovation 5. When selecting a business level strategy, the firm determines who will be served, what customer needs will be satisfied, and how those needs will be satisfied. ANS: T PTS: 1 DIF: Easy REF: 99 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing strategy & innovation 6. Global competition has increased the options for consumers and has made it more imperative for firms to identify the needs of customers in order to earn above-average returns. ANS: T PTS: 1 DIF: Medium REF: 99 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Multicultural & Diversity | Management: Strategy | Dierdorff & Rubin: Managing strategy & innovation 7. There are three generic business level strategies. ANS: F PTS: 1 DIF: Easy REF: 99 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing strategy & innovation 8. The two basic ways to segment a market are customer and industrial. ANS: F PTS: 1 DIF: Easy REF: 101-102 (Table 4.1) OBJ: 04-02 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing strategy & innovation 9. In general, U.S. middle-market consumers place their highest priority on functional products without many frills. ANS: F PTS: 1 DIF: Medium REF: 102-103 OBJ: 04-02 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff & Rubin: Managing strategy & innovation 10. An English professor spends her summers writing low-brow romance novels that sell directly to paper- back. She writes under a fictional name because she is embarrassed to admit to her colleagues and stu-back.... View Full Document

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