12e_TB_Chap_8

Chapter 08 - Business Strategy

Chapter 08 Business Strategy Multiple Choice Questions

1. (p. 215)  The two most prominent sources of competitive advantage for a business are: . !ntegration .  !ntegration and coordination B. Cost and differentiation C. "eop#e C.  "eop#e and products $. "roducts $.  "roducts and services

 Difficulty: Medium  Learning Objective: 1

%. (p. 215)  &hich of the fo##owing are often o ften referred to as generic strategies' A. Cost #eadership and differentiation B. (ar)et B.  (ar)et #eadership and differentiation C. Cost C.  Cost #eadership and product pricing $. $ifferentiation $.  $ifferentiation and va#ue chain ana#ysis

 Difficulty: Medium  Learning Objective: 1

*. (p. 216)  &hich of these refers to business strategies that see) to estab#ish #ong-term competitive advantages by emphasi+ing and perfecting va#ue chain activities that can be achieved at costs substantia##y be#ow what competitors are ab#e to match on a sustained  basis' . $ifferentiation .  $ifferentiation strategies B. ,rand B.  ,rand strategies C. ow-cost strategies $. Speed-based $.  Speed-based strategies

 Difficulty: a!y  Learning Objective: 1

8-1

Chapter 08 - Business Strategy

. (p. 21")  &hich of the fo##owing is /T a s)i## or a resource that fosters cost #eadership' A. Strong downstream partners B. "rocess B.  "rocess engineering s)i##s C. ow-cost C.  ow-cost distribution system $. Sustained $.  Sustained capita# investment and access to capita#

 Difficulty: Medium  Learning Objective: 1

. (p. 21")  rgani+ationa# re2uirements to support and sustain cost #eadership are: . Sub3ective .  Sub3ective measurements and incentives B. Tradition B.  Tradition of c#oseness to )ey customers C. 4re2uent5 detained contro# reports $. Some $.  Some personne# s)i##ed in sa#es and operations

 Difficulty: Medium  Learning Objective: 1

6. (p. 21")  Common resource5 s)i##s and organi+ationa# re2uirements to support an 7overa## cost #eadership7 generic strategy inc#ude a## but: . Sustained .  Sustained access to capita# B. Sub3ective measurement and incentives instead of 2uantitative measures C. "rocess C.  "rocess engineering s)i##s $. Tight $.  Tight cost contro#

 Difficulty: Medium  Learning Objective: 1

8-%

Chapter 08 - Business Strategy

. (p. 21#)  &hich one of the fo##owing is /T a )ey ris) associated with a cost #eadership oriented business strategy' . (any cost-saving activates are easi#y dup#icated B. Cost differences se#dom dec#ine over time C. 9c#usive cost #eadership can become a trap $. bsessive cost cutting can shrin) other competitive advantages invo#ving )ey product attributes

 Difficulty: Medium  Learning Objective: 1

8. (p. 21#)  ;;;;;;;;;; re2uires that the business have substantia# advantages that a##ow it to  provide buyers with something uni2ue#y va#uab#e to them. . Cost strategy B. !ntegration C. $ifferentiation $. Speed-based strategy

 Difficulty: a!y  Learning Objective: 1

the differentiated business is too high C. bsessive cost cutting can shrin) other competitive advan tages $. Cost differences often dec#ine over time

 Difficulty: Medium  Learning Objective: 1

8-

Chapter 08 - Business Strategy

1. (p. 222)  Business strategies bui#t around functiona# capabi#ities and activities that a##ow the company to meet customer needs more rapid#y than its main competitors are referred to as  ;;;;;;;;;; strategies. A. Speed-based B. Cost C. $ifferentiation $. !ntegration

 Difficulty: a!y  Learning Objective: 1

1. (p. 22&)  ## of the fo##owing are s)i##s or resources that foster rapid response ?speed@ 9AC9"T: . "rocess engineering s)i##s B. 9ce##ent inbound and outbound #ogistics C. igh #eve# of automation D. Creative ta#ent and f#air 

 Difficulty: Medium  Learning Objective: 1

16. (p. 22&)  rgani+ationa# re2uirements to support and sustain rapid response activities inc#ude which of these' A. Strong de#egation to operating personne# B. Sub3ective measurements and incentives C. menities to attract high#y s)i##ed #abor and creative peop#e $. 4re2uent5 detained contro# reports

 Difficulty: %ard   Learning Objective: 1

8-

Chapter 08 - Business Strategy

1. (p. 22&)  Speed-based competitive advantage can be created around a## of these activities 9AC9"T: . Customer responsiveness B. "roduct deve#opment cyc#es C. !nformation sharing and techno#ogy D. Brand #oya#ty

 Difficulty: %ard   Learning Objective: 1

18. (p. 22&)  The etent to which a business concentrates on a narrow#y defined mar)et5 it is ca##ed a?n@ ;;;;;;;;;; strategy. . !ntegration B. (ar)et focus C. 4ormu#a faci#ity $. Tight#y managed decentra#i+ation

 Difficulty: a!y  Learning Objective: 2

1$

 Difficulty: %ard   Learning Objective: &

8-<

Chapter 08 - Business Strategy

%