MGMT 481: Ch. 6 (T/F & Minicase)
T
A cost leader is the firm most likely to survive a price war.
F
A differentiator will always benefit when products have become commoditized.
T
A firm operating on a 70 percent learning curve will achieve lower per-unit costs after doubling its output than a firm operating on an 80 percent learning curve will.
F
A value curve that zig-zags across the strategy canvas indicates a focused strategy that is likely to achieve a sustainable competitive advantage.
C
Adding premium products and emphasizing customer service were two of the added-value aspects that were part of JCPenney's goal of: a. lowering the firm's costs. b. plotting industry factors among competitors. c. increasing perceived buyer value. d. tracking opportunities and risks. e. protecting themselves against the five forces
D
As a result of the strategy changes implemented by Johnson, JCPenney: a. changed to a red ocean strategy. b. changed to a cost-leadership strategy. c. achieved a blue ocean strategy. d. became stuck in the middle. e. changed to a differentiation strategy.
F
Differentiation and cost leadership strategies are only effective in manufacturing industries.
T
Differentiators tend to score highly on most competitive elements on a strategy canvas, while cost leaders tend to hover near the bottom of the strategy canvas.
B
The case explains that newly-hired CEO Ron Johnson quickly ordered the alteration of all stores to remove discount racks and add premium items. According to the case, that change and others signaled the move from a _________ strategy to a ________ strategy. a. focused differentiation; cost leadership b. cost-leadership; blue ocean c. differentiation; cost-leadership d. cost-leadership; focused cost-leadership e. differentiation; focused differentiation
E
The goal of a blue ocean strategy is to find a competitive advantage by: a. offering premium products at premium prices. b. attracting only top-tier customers. c. competing with only a few large firms. d. carving out a unique niche within the industry. e. attaining both cost leadership and differentiation
F
The goal of the differentiator is to have a smaller value gap than competitors.
T
The major value drivers that managers have at their disposal include product features, customer service, and complements.
F
When a firm operates at the minimum efficient scale, there is still opportunity for it to further reduce its cost per unit through economies of scale.
F
When pursuing a Blue Ocean strategy, a firm in a crowded marketplace attempts to out-compete rivals on both cost and product features with the goal of gaining market share at the expense of other competitors in the same industry.
