18 Questions
What does the efficiency frontier in an industry show?
All possible differentiation and low-cost positions
What is required for a company to reach the efficiency frontier?
Pursue the right functional-level strategies and have unique strengths
What is the process referred to when companies push out the efficiency frontier?
Value innovation
Which factor is NOT commonly used for market segmentation?
Competition analysis
What must a segment have to be served profitably?
Enough demand
What is one strategy some enterprises adopt when choosing which segments to serve?
Focus on a few segments or just one
What type of business-level strategy is Dollar Tree following?
Focused low cost
Which dimension of business-level strategy emphasizes either low-cost or differentiation?
Competitive theme managers emphasize
What is necessary to reach the efficiency frontier in an industry?
Efficient operations
What is essential for sustaining a competitive advantage in the long run?
Continuous improvement of operational efficiency
Which company represents an example of broad differentiation strategy?
Zalando
What allows for a variety of different ways to compete in an industry according to the text?
Emphasizing either low-cost or differentiation
What is the main critique of the rational decision-making model according to Herbert Simon?
The assumption that human decision makers are rational is not valid.
In bounded rationality, managers make decisions rationally but are limited by their:
Ability to process information.
What term is used to describe settling for a solution that is 'good enough'?
Satisficing.
Which group behavior may lead to poor strategic decisions due to conformity?
Groupthink.
What is one factor that can contribute to the occurrence of groupthink?
Members applying direct pressure on dissenting views.
In the context of decision making, what does 'bounded rationality' suggest about managers?
They make decisions based on limited ability to process information.
Explore the concept of the efficiency frontier in retail apparel in the US, understanding how companies can achieve differentiation and low-cost positions. Learn about the strategies required to reach the efficiency frontier and the importance of unique strengths and competencies.
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