4Business - 4Business-Level Chapter Strategy TRUE/FALSE 1....

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4Business-Level Chapter Strategy TRUE/FALSE 1. The goal of business-level strategy is to earn above-average returns. ANS: T 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 3. Every firm uses all levels of strategy: corporate, acquisition and restructuring, international and cooperative. ANS: F 4. Business-level strategy can be thought of as the firms core strategy. ANS: T 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 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 7. There are three generic business level strategies. ANS: F 8. The two basic ways to segment a market are customer and industrial. ANS: F 9. In general, U.S. middle-market consumers place their highest priority on functional products without many frills. ANS: F 10. An English professor spends her summers writing low-brow romance novels that sell directly to paperback. She writes under a fictional name because she is embarrassed to admit to her colleagues and students how she earns the extra money for foreign vacations. The professor is correct in her concern that she is serving customer needs that are objectively inferior and bad. ANS: F 11. Companies without the core competencies to link primary and support activities are still able to implement successfully a either a cost leadership or a differentiation strategy, although they cannot implement an integrated cost leadership/differentiation strategy. ANS: F 12. To position itself differently from competitors, a firm must decide to either perform activities differently or to perform different activities. ANS: T 13. An examination of a companys activity map will reveal its strategic themes. ANS: T 14. The difference between the cost leadership and differentiation business-level strategies, and the focused cost leadership and focused differentiation strategies, is their competitive reach. ANS: F 15. Essentially, there are only two basic competitive advantages: cost and uniqueness. ANS: T 16. Firms implementing cost leadership strategies often sell no-frills standardized goods or services to the industrys most typical customers. ANS: T
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17. In general, firms can be most effective if they develop business-level strategies that will serve the needs of the average customer. ANS: F 18. The best of the generic business strategies is the integrated cost leadership/differentiation strategy. ANS: F
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This note was uploaded on 04/27/2011 for the course MGNT 4010 taught by Professor A during the Spring '11 term at HKU.

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4Business - 4Business-Level Chapter Strategy TRUE/FALSE 1....

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