Test Chapter 8 - Chapter 08 Strategic Management Multiple...

Chapter 08
Strategic Management
Multiple Choice Questions
1. The two most prominent sources of competitive advantage for a business are:
A. Integration and coordination
B. Cost and differentiation
C. People and products
D. Products and services
2. Businesses that create competitive advantages from one or both of cost and
differentiation usually experience ______ profitability within their industry.
3. Which of the following are often referred to as generic strategies? 4. Which of these refers to business strategies that seek to establish long-term competitive
advantages by emphasizing and perfecting value chain activities that can be achieved at
costs substantially below what competitors are able to match on a sustained basis?
5. Business success built on cost leadership requires the business to be able to provide its
product or service at a cost _____ what its competitors can achieve.
A. at
B. above
C. below
D. equal to
Strategic Management # Pascasarjana Undiknas # Prof. GSD # Test - Chapter 8 # Page 1

6. Which of the following is NOT a skill or a resource that fosters cost leadership?
7. Organizational requirements to support and sustain cost leadership are: 8. ______ type of innovations support a cost leadership strategy. 9. Common resource, skills and organizational requirements to support an "overall cost
leadership" generic strategy include all but:
A. Sustained access to capital
B. Subjective measurement and incentives instead of quantitative measures
C. Process engineering skills
D. Tight cost control
10. Truly low-cost advantages ______ price competition. 11. Low-cost advantages should ______ the attractiveness of substitute products.
Strategic Management # Pascasarjana Undiknas # Prof. GSD # Test - Chapter 8 # Page 2