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Question 1
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Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in
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· the selection of industries in which the firm will compete.
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· specific product markets.
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· primary value chain activities.
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· particular geographic locations.
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10 points
Question 2
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The three dimensions of a firm’s relationships with customers include all the following EXCEPT
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· Exclusiveness
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· Affiliation
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· Richness
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· Reach
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10 points
Question 3
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Business-level strategies are concerned specifically with:
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· creating differences between the firm's position and its rivals.
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· selecting the industries in which the firm will compete.
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· how functional areas will be organized within the firm.
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· how a business with multiple physical locations will operate one of those locations.
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10 points
Question 4
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A river barge company can offer cheaper, although slower, per pound transportation of products to companies when compared with transportation by air, truck, or rail. The river barge company should first target customers whose companies use
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· the integrated cost leadership/differentiation strategy.
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· either of the focus strategies.
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· the cost-leadership strategy.
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· any of the strategies except the focused differentiation strategy.
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10 points
Question 5
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When a product's unique attributes provide value to customers, the firm is implementing
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· a differentiation strategy.
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· a cost leadership strategy.
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· an integrated cost leadership/differentiation strategy.
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· a single-product strategy.
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10 points
Question 6
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When implementing a focus strategy, the firm seeks to
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· offer products that are both differentiated and low cost.
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· move into the global market.
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· target the typical customer in an industry.
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· serve the specialized needs of a market segment.
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10 points
Question 7
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A flexible manufacturing system is
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· based on the use of temporary and part-time employees as well as outsourcing.
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· a computer-controlled process that is used to produce a variety of products in moderate, flexible quantities with minimal human intervention.
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· based on a 360-degree view of the company’s relationships with customers.
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· a system that identifies “the one best way” to produce each product in the company’s line.
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10 points
Question 8
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TQM is most helpful to firms following the ____ business strategy.
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· cost-leadership
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· integrated cost-leadership/differentiation
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· focused cost-leadership
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· focused differentiation
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10 points
Question 9
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The term "stuck in the middle"
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· means adhering to a middle of the road strategy in the face of negative outcomes.
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· indicates that the customers of the firm are willing to pay only a mid-range price for the product.
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· reflects the fact that the customers of the firm have only moderate expectations regarding product quality.
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· describes a firm that fails to optimally perform its primary and support activities.
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10 points
Question 10
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A nationwide chain of pet stores wishes to identify the tradeoffs that its customers are willing to make between low-cost products such as generic pet foods and differentiated features such as pick-up and delivery of pets for grooming. The best technique for this firm to learn this information would be to use
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· customer relationship management.
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· a flexible manufacturing system.
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· differentiation development planning.
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· Enterprise Resource Planning.
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