MGT 487 Final

Which of the following examples uses a focused differentiation strategy?

A tennis pro shop that sells high-quality, custom racquets priced at $350 per racquet

When wireless service providers offer free or discounted mobile phones for subscribers to their wireless voice and data service, the perceived value of the service offering increases. In this case, the value driver would be

Availability of complements

One of the reasons that Circuit City filed for bankruptcy was due to its inability to reinvest, hone, and upgrade its once-impressive resource base. Ultimately, Circuit City's core competences became

Core rigidities

University Home Goods is a home furnishings company that caters to college students and other highly price-conscious customers. Through its simple designs, acceptable quality levels, and minimal customer service, the company has been able to sell its merchandise at the lowest prices in the industry. Which of the following generic business strategies is University Home Goods applying?

Cost-leadership

When a firm does not continually upgrade or improve core competencies, its competitors are likely to

Develop equivalent or superior skills

According to an evaluation using the VRIO framework, Crocs, inventor of the iconic plastic clog, was unable to sustain its competitive advantage primarily because its products were

Easy to imitate

Bath & Chill is a spa that caters to the needs of a small percentage of highly health-conscious consumers. It offers state-of-the-art treatments in a luxurious setting. Since there are very few spas that offer the same unique services, customers are willing to pay a premium price for its products and services. In this scenario, Bath & Chill is following a

Focused differentiation strategy

Evaluate the following statement: Strategic leaders should always try to pursue a blue ocean strategy because it is the most complex, coveted, and most desirable strategy that exists

I disagree; firms should only pursue this strategy if they are able to reconcile the tradeoffs of each generic strategy

________ are barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy

Isolating mechanisms

Five Guys has become successful in a highly competitive industry dominated by fast-food giants like McDonald's and Burger King, as well as direct competitors claiming to be "better burger" joints such as Smashburger, Burgerfi, and Shake Shack. Which of the following statements accurately explains the main reason for the success of Five Guys?

It created customized, made-to-order food using the highest-quality ingredients

Spotless Inc. outsources its production to contract manufacturers located in underdeveloped nations where unskilled labor is at very low wages is plentiful. This has helped the company become a price leader in the chemicals industry. Which of the following is the key driver behind Spotless Inc.'s strategic position?

Low-cost input factors

Capabilities are the ___________ and managerial skills necessary to orchestrate a diverse set of resources to deploy them strategically.

Organizational

________ describes a process in which the options one faces in a current situation are limited by decisions made in the past

Path dependence

The types of assets that are the primary focus of accounting data but are no longer most important to competitive advantage are

Tangible assets

A value chain analysis consists of systematically analyzing a firm's key activities that for analysis purposes are categorized into two groups:

Primary activities and support activities

Customer service and________ are two of the value drivers that managers can utilize when trying to improve a firm's differentiation strategic position.

Product uniqueness

Which of the following is considered a limitation of employing the balance-scorecard framework?

Providing guidance about the right metrics to use

Southwest Airlines (SWA) and Alaska Airlines (ASA) both compete in the same strategic group as low-cost, point-to-point airlines, but they draw upon different resource bundles. SWA's employee productivity tends to be higher than ASA's because the two companies differ in their human and organizational resources. This example best illustrates which of the following assumptions regarding the resource-based view?

Resource heterogeneity

Greener Cleener is a leading maker of environmentally friendly household cleaning products. Competitors across the globe have failed to imitate Greener Cleener's production models, supply chain systems, knowledge systems, and culture. These attributes have remained unique to Greener Cleener for a long time. Which of the following assumptions of the resource-based model of competitive advantage does this scenario best illustrate?

Resource immobility

Crocs, inventor of the iconic plastic clog, was unable to sustain its competitive advantage over its rivals because its key strategic resource was

Simple to imitate

One of the risks of pursuing a blue ocean strategy is that a firm can find itself

Stuck in the middle without a clear strategic position

Which of the following frameworks used to measure competitive advantage relies on both an internal and an external view of a firm?

The balanced-scorecard model

In a focused cost-leadership strategy, a firm

delivers low-cost products and services to a specific, narrow part of the market