Efficiency Frontier in Retail Apparel in US
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Questions and Answers

What does the efficiency frontier in an industry show?

  • A static representation of an industry's performance
  • The absence of competition within the industry
  • All possible differentiation and low-cost positions (correct)
  • Constant returns to scale

    • What is required for a company to reach the efficiency frontier?

  • Keep a static approach to business operations
  • Focus on generic strategies
  • Pursue the right functional-level strategies and have unique strengths (correct)
  • Ignore the strategies of rivals

    • What is the process referred to when companies push out the efficiency frontier?

  • Cost-cutting strategy
  • Functional-level strategies
  • Value innovation (correct)
  • Market segmentation

    • Which factor is NOT commonly used for market segmentation?

    <p>Competition analysis</p> Signup and view all the answers

    What must a segment have to be served profitably?

    <p>Enough demand</p> Signup and view all the answers

    What is one strategy some enterprises adopt when choosing which segments to serve?

    <p>Focus on a few segments or just one</p> Signup and view all the answers

    What type of business-level strategy is Dollar Tree following?

    <p>Focused low cost</p> Signup and view all the answers

    Which dimension of business-level strategy emphasizes either low-cost or differentiation?

    <p>Competitive theme managers emphasize</p> Signup and view all the answers

    What is necessary to reach the efficiency frontier in an industry?

    <p>Efficient operations</p> Signup and view all the answers

    What is essential for sustaining a competitive advantage in the long run?

    <p>Continuous improvement of operational efficiency</p> Signup and view all the answers

    Which company represents an example of broad differentiation strategy?

    <p>Zalando</p> Signup and view all the answers

    What allows for a variety of different ways to compete in an industry according to the text?

    <p>Emphasizing either low-cost or differentiation</p> Signup and view all the answers

    What is the main critique of the rational decision-making model according to Herbert Simon?

    <p>The assumption that human decision makers are rational is not valid.</p> Signup and view all the answers

    In bounded rationality, managers make decisions rationally but are limited by their:

    <p>Ability to process information.</p> Signup and view all the answers

    What term is used to describe settling for a solution that is 'good enough'?

    <p>Satisficing.</p> Signup and view all the answers

    Which group behavior may lead to poor strategic decisions due to conformity?

    <p>Groupthink.</p> Signup and view all the answers

    What is one factor that can contribute to the occurrence of groupthink?

    <p>Members applying direct pressure on dissenting views.</p> Signup and view all the answers

    In the context of decision making, what does 'bounded rationality' suggest about managers?

    <p>They make decisions based on limited ability to process information.</p> Signup and view all the answers

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