CH04_Testbank_HIH9e - Chapter 4Business-Level Strategy...

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Chapter 4—Business-Level Strategy TRUE/FALSE 1. As shown in the Chapter 4 Opening Case, because of its lower overhead cost structure, Acer is able to price its products below those of its competitors. ANS: T PTS: 1 DIF: Easy REF: 99 OBJ: 04-01 TYPE: application NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions 2. According to the Chapter 4 Opening Case, the decision to sell through wholesalers and to manufacture all product in-house are examples of actions taken by Acer to reduce its costs. ANS: F PTS: 1 DIF: Medium REF: 99 OBJ: 04-01 TYPE: application NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions 3. According to the Chapter 4 Opening Case, Acer’s strategy of running a business with lower costs is good when markets are not growing (as occurred during the global recession) but even better when markets are growing. ANS: F PTS: 1 DIF: Hard REF: 99 OBJ: 04-01 TYPE: application NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions 4. The goal of business-level strategy is to earn above-average returns. ANS: T PTS: 1 DIF: Medium REF: 100 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions 5. 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: 100 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions 6. Every firm uses all levels of strategy: corporate, acquisition and restructuring, international and co- operative. ANS: F PTS: 1 DIF: Easy REF: 100 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Knowledge of general business functions
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7. Business-level strategy can be thought of as the firm’s core strategy. ANS: T PTS: 1 DIF: Medium REF: 100 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- 8. 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: 100-101 OBJ: 04-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- 9. 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
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CH04_Testbank_HIH9e - Chapter 4Business-Level Strategy...

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