BUS498 Chapter 6 HW

The four generic business strategies are generated by comparing the strategic position with the scope of competition. Tesla, an electric car manufacturer, is presented in the text as fitting into which of these categories? a. integration b. focused cost leadership c. differentiation d. focused differentiation e. cost leadership within electric vehicles

d. focused differentiation

1. chevy 2. cadillac 3. bic 4. mont blanc

1. cost leadership 2. differentiation 3. focused cost leadership 4. differentiation

As noted in the overview, and in the chapter, a firm can adjust its value drivers to improve its strategic position. Which of the following examples highlights a differentiation strategy driven by product features? a. OXO ergonomic kitchen utensils designed with soft black rubber grips b. Toyota's focus on listening to its customers c. Zappo's free shipping to its customers for returns d. Toyota's renewed sense of transparency e. Google's Pixel phone combined with discounted high-speed wireless services

a. OXO ergonomic kitchen utensils designed with soft black rubber grips

Southwest and Delta both compete in the airline industry, but they follow different business strategies. Delta's transportation infrastructure is based upon a high-value hub-and-spoke system and offers upscale services to high mileage flyers. Southwest Airlines uses a point-to-point basic system for nationwide air transport. What generic business strategy is Southwest using? a. broad cost leadership b. strategic positioning c. focused cost leadership d. economies of scope e. differentiation

a. broad cost leadership

In the case of Toyota, overall they have maintained a differentiated position in the market and continue to be successful across the globe. Which of the following business levers does the preceding case highlight in this effort to sustain a competitive advantage? a. customer service b. economies of scale c. complements d. learning curve e. product features

a. customer service

Firms focusing on operating a cost-leadership strategy are most likely to develop their product or service to emphasize the a. functional aspects. b. promotional aspects. c. social aspects. d. presentational aspects. e. emotional aspects.

a. functional aspects.

A strategy canvas comparing JetBlue to the differentiated and low-cost airlines provides a visual depiction of some of the issues found in the JetBlue discussion throughout the chapter. Which three factors in the canvas (see Exhibit 6.11 in the text) most prominently show the key problems at JetBlue? a. price, connections, and customer service b. seating class, lounges, and meals c. international routes, seating class, and in-flight amenities d. price, in-flight amenities, and lounges e. connections, lounges, and in-flight amenities

a. price, connections, and customer service

Timex and Rolex both compete in the wristwatch market, but they follow different business strategies. Rolex creates a high-quality timepiece with unique features that last a lifetime. Timex efficiently produces a watch of acceptable quality. What generic business strategy is Rolex using? a. economies of scope b. differentiation c. focused cost leadership d. strategic positioning e. integration

b. differentiation

A strategic position is the firm's profile based on value creation and cost. Effective managers will create a large gap between the ______________ and the cost required to produce it. a. broad and focused market segments b. value the firm creates with its product or service c. scope and scale of the business d. integration strategy e. overall market share size

b. value the firm creates with its product or service

Which of the following would not be a reason for Bic to decide to compete in Mont Blanc's market? a. Bic's distribution capabilities are not well designed to reach Mont Blanc's target market. b. Bic's marketing department isn't geared to addressing Mont Blanc's target market. c. Bic is a large publicly traded company with significant financial resources. d. Bic's manufacturing facilities would need to be retooled to compete in Mont Blanc's target market. e. Bic's reputation would be detrimental when competing in Mont Blanc's target market.

c. Bic is a large publicly traded company with significant financial resources.

Toyota has undergone difficult times in recent years, as explained in the case you just read. What attribute does Toyota seize as a way to move forward? a. renewed dedication to improve their learning curve b. move toward a more focused scope of competition c. refocusing on their core value creation tools d. willingness to decrease value if needed to improve costs e. change from differentiation to a cost-focused strategy

c. refocusing on their core value creation tools

Differentiation business strategies are often associated with premium prices. There are, however, reasons why a firm would NOT want to charge higher prices than the competition. Which of the following is the best example of why a firm would want to keep prices in line with competitors? a. to increase profit margins per item b. to invest in product R&D c. if the industry is in a high-growth stage d. to drive up market share e. to leverage complements

d. to drive up market share

The text provides an example of a firm "stuck in the middle." JCPenney attempted a change in strategic position under the leadership of CEO Ron Johnson (who was lured away from Apple retailing). Mr. Johnson was fired less than 18 months after his arrival at JCPenney due to a stark drop in sales after implementing some of his planned changes. What is a key lesson to be learned from this example? a. Cost-leadership strategy is proven to be superior in retailing. b. Strategic changes are more difficult for new CEOs to implement. c. Organizational culture is important to consider in strategic changes. d. Retailing is not a good industry for value innovation strategies. e. Changing strategic positioning too quickly is risky.

e. Changing strategic positioning too quickly is risky.

Mont Blanc uses a differentiation strategy that focuses on the social and emotional aspects of their product to appeal to a specific consumer segment. Which of the following initiatives would most be in keeping with their strategy? a. an agreement with online providers to offer discounted pens b. an increase in the service warranty from 1 year to 2 years c. an agreement with OfficeMax to more prominently show Mont Blanc pens in the writing instrument section of their stores d. the release of a new pen that uses a smoother roller ball effect e. an engraving service for pen owners who may wish to will their pens to loved ones

e. an engraving service for pen owners who may wish to will their pens to loved ones

A value innovation strategy requires trade-offs between differentiation and low costs. These are two distinct business-level positions that often require very different internal value chain activities. An example of a low-cost activity that may not be appropriate for a differentiator is a. adding new features to the product in response to customer feedback. b. building an ambidextrous organization. c. improving the efficiency of customer service to lower costs and improve customer response times. d. investing in complementary assets to increase market share of the product. e. standardizing the production processes for higher output levels with fewer model changes.

e. standardizing the production processes for higher output levels with fewer model changes.