Mastering Strategic Management Chapter 5 Quiz: Business-Level Strategies & Cost Leadership
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Questions and Answers

What is the focus of Chapter 5 in Mastering Strategic Management?

  • Exploring Differentiation Strategies
  • Selecting Business-Level Strategies (correct)
  • Understanding SWOT Analysis
  • Discussing Economies of Scale

    • Which of the following is NOT one of the main generic strategies discussed in Chapter 5?

  • Focus on Target Market
  • Market Penetration (correct)
  • Differentiation
  • Cost Leadership

    • What is a limitation associated with the four main generic strategies?

  • Difficulty in Implementing Technology
  • Limited Market Share
  • Inability to Adapt to Change
  • Possible Imitation by Competitors (correct)

    • What advantage is associated with a cost leadership strategy?

    <p>Lower Costs Than Competitors</p> Signup and view all the answers

    What is the nature of focused cost leadership as described in Chapter 5?

    <p>Narrow Market with Low Prices</p> Signup and view all the answers

    What does it mean to be 'Stuck in the middle' according to the content?

    <p>Not having a clear strategy direction</p> Signup and view all the answers

    What is the main focus of a company pursuing a cost leadership strategy?

    <p>Achieving above average performance in the industry</p> Signup and view all the answers

    Which of the following is NOT a potential source of cost advantage for a low-cost producer?

    <p>High pricing strategies</p> Signup and view all the answers

    What is a key tactic used by companies pursuing an overall cost leadership strategy?

    <p>Avoiding marginal customer accounts</p> Signup and view all the answers

    How does achieving overall cost leadership affect a company's performance?

    <p>Leads to above average performance in the industry</p> Signup and view all the answers

    What is one of the integrated tactics used by companies pursuing overall cost leadership?

    <p>Vigorous pursuit of cost reductions from experience</p> Signup and view all the answers

    What is a characteristic of companies focused on an overall cost leadership strategy regarding customer accounts?

    <p>They avoid marginal customer accounts</p> Signup and view all the answers

    What is a common theme related to the ineffectiveness of cost leadership?

    <p>Multiple alternatives available</p> Signup and view all the answers

    In the context of cost leadership strategies, what does economics suggest about low volume purchases?

    <p>They hinder cost leadership effectiveness</p> Signup and view all the answers

    How does the text humorously suggest making a Yugo go faster?

    <p>Use a tow truck</p> Signup and view all the answers

    According to the content, what was the dealer's response to someone asking for a gas cap for a Yugo?

    <p>&quot;Sounds like a fair trade&quot;</p> Signup and view all the answers

    What did the text suggest about Yugo's shock absorbers?

    <p>They are passengers</p> Signup and view all the answers

    How does the text humorously imply getting a Yugo to reach 60 miles per hour?

    <p>Push it over a cliff</p> Signup and view all the answers

    What is a key element of differentiation as a business-level strategy?

    <p>Providing unique features to convince customers to pay more</p> Signup and view all the answers

    Which licensing type is mentioned for the work discussed?

    <p>Creative Commons Attribution 3.0 Unported License</p> Signup and view all the answers

    What does the generic focus strategy focus on?

    <p>Competing only within a subset of potential buyers</p> Signup and view all the answers

    How does differentiation drive customer behavior?

    <p>By providing unique features to justify higher prices</p> Signup and view all the answers

    In a focused differentiation strategy, how does a firm compete?

    <p>By providing unique features to a specific market segment</p> Signup and view all the answers

    Why might a customer choose a differentiated product over others?

    <p>Because it offers unique qualities at a premium price</p> Signup and view all the answers

    What does it mean for a firm to be 'stuck in the middle' in terms of business-level strategy?

    <p>The firm neither offers unique features nor competitive pricing</p> Signup and view all the answers

    Why do firms usually become 'stuck in the middle' according to the text?

    <p>Because they are outmaneuvered by rivals</p> Signup and view all the answers

    In the context of business-level strategies, what is a key takeaway mentioned in the text?

    <p>Firms must avoid becoming 'stuck in the middle'</p> Signup and view all the answers

    Why is it important for a firm not to be 'stuck in the middle' between viable generic business-level strategies?

    <p>To avoid a situation where the firm lacks uniqueness and pricing competitiveness</p> Signup and view all the answers

    What is a common outcome for firms that are 'stuck in the middle'?

    <p>They struggle due to lack of unique features or competitive pricing</p> Signup and view all the answers

    'Stages of Industry Life Cycle' are often related to what aspect of business-level strategy?

    <p>'Stuck in the middle' and business-level strategy considerations</p> Signup and view all the answers

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