BSAD 4780 Learn Smart
how to compete on a business level is defined by the variables value and cost. Together they define the ________.
economic value created
A(n) ______ is a situation that requires choosing between a cost or value position.
strategic trade-off
Which of the following are considered the two generic business-level strategies?
- differentiation - cost-leadership
Business-level strategy addresses which overarching question?
how should we compete
A firm's competitive advantage is determined jointly by ______ effects and firms effects.
industry
In a focused cost-leadership strategy, a firm provides ______.
low cost products to a niche market.
Whereas the firm's strategic position can be considered either differentiated or cost-focused, the scope of competition is considered _____.
narrow or broad
A differentiation strategy is typically associated with ______ pricing.
premium
Economies of ______ are the savings that come from producing two or more different outputs at a lower cost than producing each output individually.
scope
Choosing a business-level strategy helps to define a firm's ______ in a given product market.
strategic position
a company's strategic profile based on value creation and cost in specific product market is the company's ________.
strategic position
Baby Buggy Baby sells high-end baby strollers. In an attempt to maintain its competitive advantage, the firm began adding additional features to its strollers. Customers liked these features and sales increased, but the company's profit margins shrank. Which of the following is the likely reason for this?
the firm neglected to control costs.
To formulate an appropriate business-level strategy, managers must answer the ________ questions of competition.
who, what, why, and how