When selecting a business level strategy, the firm must determine all of the following except

1. The goal of business-level strategy is to build a sustainable competitive advantage?

Select one:

True

False

2. A competitive advantage is:

Select one:

a.

When customers are willing to pay more for a firm's product or services than it costs the firm to deliver that profit or service

b.

When a firm is able to conduct business in the global marketplace.

c.

When customers are unaware of what it costs to produce a firm's products or services.

d.

When a firm holds a monopoly in the marketplace.

3. All of the following are regarded as generic competitive strategies EXCEPT:

Select one:

a.

Cost leadership

b.

Focussed cost leadership

c.

Diversification

d.

Differentiation

4. A generic competitive strategy seeks to:

Select one:

a.

Support a firm replicate the strategy of its rivals by following a cost leadership, differentiation or market focus strategy.

b.

Support a firm imitate the strategy of its rivals by following a cost leadership, differentiation or market focus.

c.

Support a firm position itself differently from its rivals by achieving cost leadership, differentiation or market focus.

d.

All of the above.

5. Organisations can achieve a cost leadership by:

Select one:

a.

Being the cheapest.

b.

Being the lowest cost producer.

c.

Being the premium price leader

d.

None of the above.

6. An organisation pursuing a differentiation strategy would tend to:

Select one:

a.

Compete on uniqueness and quality of product or service normally through premium pricing.

b.

Compete on cost reduction.

c.

Compete on product offering through diversification.

d.

Compete on quality by imitating a rivals existing products or services.

7. When implementing a focussed strategy, the firm aims to:

Select one:

a.

Penetrate the global marketplace.

b.

Target the needs of a specific market segment.

c.

Penetrate the mass market.

d.

Target the needs of customers in multiple market segments.

8. Stuck-in-the-middle occurs when:

Select one:

a.

The organisation has become the cost leader but is stuck in a position that prevents it from increasing its product or service's price.

b.

The customers of the organisation are only willing to pay a mid-range price for a product.

c.

The organisation fails to optimally perform a cost leadership or differentiation strategy.

d.

All of the above

9. Bowman's strategy clock seeks to provide:

Select one:

a.

A static interpretation of competitive strategy that considers the role of cost reduction and perceived product/service benefits.

b.

A framework that provides the organisation with assistance on the timing of strategy implementation.

c.

A framework that provides support on how to strategically change the direction of the business.

d.

A dynamic interpretation of competitive strategy that considers the role of price and perceived product/service benefits.

10. A hybrid strategy seeks:

Select one:

a.

To compete on premium pricing to niche markets.

b.

To compete on low pricing to niche markets.

c.

To compete on premium pricing and to global markets.

d.

To compete on low pricing and uniqueness.

Answer & Explanation

Question 1

True

Question 2

D)

When a firm holds a monopoly in the marketplace

Question 3

C)

Diversification

Question 4

C

Support a firm position itself differently from its rivals by achieving cost leadership, differentiation or market focus.

Question 5

B)

Being the lowest cost producer.

Question 6

A)

Compete on uniqueness and quality of product or service normally through premium pricing.

Question 7

B)

Target the needs of a specific market segment.

Question 8

C}

The organization fails to optimally perform a cost leadership or differentiation strategy.

Question 9

D)

A dynamic interpretation of competitive strategy that considers the role of price and perceived product/service benefits.

Question 10

D)

To compete on low pricing and uniqueness.

Step-by-step explanation

Question 1

A company gains a competitive advantage by adding value to its products and services or lowering its own costs more effectively than its competitors in the industry.

Question 2

When a company successfully attracts more customers, earns more profit, or returns more value to its shareholders than competitors, it is said to have a Competitive advantage. It is what distinguishes an entity's goods or services from all of the other options available to a customer.

Question 3

Three business-level strategies exist for gaining a competitive advantage. They are as follows:

• Cost Leadership
• Differentiation
• Focused cost leadership

Diversification is not part the competitive advantage strategies

Question 4

According to Porter, a company can utilize its advantages to position itself within the competition by implementing strategies that differ from competitors in order to attract more customers.

Question 5

Cost leadership strategy is an organization's attempt to gain market share by appealing to cost-conscious or cost-restricted customers or consumers. As a result, the organization's goal is to become the lowest-cost producer in their chosen industry.

Question 6

The general goal of differentiation-led organizations is to differentiate or make their products more appealing than others in the industry in order to gain a competitive advantage. These organizations typically target larger markets and concentrate on differentiation on a much larger scale within the industry.
A company that uses a differentiation strategy can charge a premium price, implying that it has a higher profit margin.

Question 7

Focus implies that the company's leaders know and serve their target market better than anyone else. The key to a successful focus strategy is to select one or a few smaller specific target markets through cost leadership or differentiation.
Because these organizations have identified a smaller consumer group to focus on, they can appeal to the needs and desires of this group more specifically than an organization attempting to differentiate for a larger population.

.

Question 8

A company is said to be stuck in the middle if it does not promote the right that are distinctive enough to persuade customers to buy its services and its prices are too high to actually compete on cost. Organizations stuck in the middle perform poorly because they have no market or competitive pricing.

Question 9

Bowman's Strategic Clock is a model that examines the options for strategic positioning within a market based on the price and perceived value combinations that any firm employs and identifies the likelihood of success for each strategy.

Question 10

The hybrid strategy enables for the selling of the product at a lower price than the competitor while also providing a higher quality product. The hybrid strategy incorporates elements of differentiation and low-cost to provide customers with competitive products.

What should the firm determine when selecting a business

Which is the following is not a business

Which is not included in the three dimensions in the relationships with customers of a firm a richness B exclusiveness c affiliation d reach?

What are business