Podcast
Questions and Answers
What does the efficiency frontier in an industry show?
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?
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?
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?
Which factor is NOT commonly used for market segmentation?
What must a segment have to be served profitably?
What must a segment have to be served profitably?
What is one strategy some enterprises adopt when choosing which segments to serve?
What is one strategy some enterprises adopt when choosing which segments to serve?
What type of business-level strategy is Dollar Tree following?
What type of business-level strategy is Dollar Tree following?
Which dimension of business-level strategy emphasizes either low-cost or differentiation?
Which dimension of business-level strategy emphasizes either low-cost or differentiation?
What is necessary to reach the efficiency frontier in an industry?
What is necessary to reach the efficiency frontier in an industry?
What is essential for sustaining a competitive advantage in the long run?
What is essential for sustaining a competitive advantage in the long run?
Which company represents an example of broad differentiation strategy?
Which company represents an example of broad differentiation strategy?
What allows for a variety of different ways to compete in an industry according to the text?
What allows for a variety of different ways to compete in an industry according to the text?
What is the main critique of the rational decision-making model according to Herbert Simon?
What is the main critique of the rational decision-making model according to Herbert Simon?
In bounded rationality, managers make decisions rationally but are limited by their:
In bounded rationality, managers make decisions rationally but are limited by their:
What term is used to describe settling for a solution that is 'good enough'?
What term is used to describe settling for a solution that is 'good enough'?
Which group behavior may lead to poor strategic decisions due to conformity?
Which group behavior may lead to poor strategic decisions due to conformity?
What is one factor that can contribute to the occurrence of groupthink?
What is one factor that can contribute to the occurrence of groupthink?
In the context of decision making, what does 'bounded rationality' suggest about managers?
In the context of decision making, what does 'bounded rationality' suggest about managers?
