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

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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 19. A low-cost position in the industry is not a valuable defense against rivals when competing on the basis of price.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern