MGMT 449 CSUF Exam 2 Prep

A broad differentiation strategy generally produces the best results in situations where A) buyer brand loyalty is low B) few rival firms are following a similar differentiation approach C) new and improved products are introduced only infrequently D) perceived value of a product is not of great importance

A) Few rival firms are following a similar differentiation approach

A Low-cost leaders basis for competitive advantage A) Lowest possible prices for comparable products B) a low cost / moderate price approach to gain the biggest market share C) high buyer switching costs D) meaningful lower overall costs than rivals on comparable products

A) Meaningful lower overall costs than rivals on comparable products

When comparing and contrasting the differences between a localized multi domestic strategy and a global strategy you would not say that A) a global strategy entails extensive strategy coordination across countries and a multi domestic strategy entails little or no strategy coordination across countries B) a global strategy often entails use of the best suppliers from anywhere in the world, whereas a multi domestic strategy may entail fairly extensive use of local suppliers (especially where use of local sources is required by host governments) C) a global strategy tends to involve use of similar distribution and marketing approaches worldwide whereas a multi domestic strategy often entails adapting distribution and marketing to local customs and the culture of each country D) a global strategy involves striving to be the global low cost provider by economically producing and marketing a mostly standardized product worldwide, whereas a multi domestic strategy entails pursuing a broad differentiation and striving to strongly differentiate its products in one country from the products it sells in other countries

A) a global strategy involves striving to be the global low cost provider by economically producing and marketing a mostly standardized product worldwide, where as a multi domestic strategy entails pursuing broad differentiation and striving to strongly differentiate its products in one country from the products it sells in other countries.

The difference between a merger and an acquisitions is that A) a merger involves one company purchasing the assets of another company with cash, whereas an acquisition involves a company acquiring another company by buying all of the shares of its common stock B) a merger is the combining of two or more companies into a single corporate entity, wheres an acquisition involves one company (the acquirer) purchasing and absorbing the operations of another company (the acquired) C) in a merger the companies retain their original names, where as in an acquisition the name of the company being acquired is changed to be the name of the acquiring company D) a merger is a combination of three or more companies, whereas an acquisition is a pooling of interests of just two companies

A) a merger is the combining go two or more companies into a single corporate entity, where as an acquisition involves one company (the acuirer) purchasing and absorbing the operations of another company (the acquired)

The best strategic alliances A) are highly selective, focusing on particular value chain activities and on obtaining a particular competitive benefit B) are those whose purpose is to create an industry key success factor C) are those that help a company move quickly from one strategic group to another D) involve joining forces in R&D to develop new technologies cheaper than a company could develop the technology on its own.

A) are highly selective, focusing on particular value chain activities and on obtaining a particular competitive benefit

An offensive to yield good results can be short if A). buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign) B) competition creates an appealing new product C) the technology needs debugging D) new production capacity needs to be installed

A) buyers respond immediately (to a dramatic cost-based price cut to imaginative ad campaign)

Opportunities to differentiate a company's product offering A) are most reliably found in the R&D portion of the value chain B) are typically located in the sales and marketing portion of the value chain C) can exist in activities all along an industry's value chain D) usually are tied to product quality and customer service

A) can exist in activities all along an industry's value chain

Strategic alliances are more likely to be long lasting when they involve A) partners that respectively have considerable resource weaknesses in the marketplace B) partners that are not only experienced with strategic alliances, but who also routinely enter into collaborative agreements in peripheral industries C) partners based in countries with distinctly different cultures and consumer buying habits and preferences D) collaboration with suppliers or distribution allies, or when both parties conclude that continued collaboration is in their mutual interests

A) collaboration with suppliers or distribution allies, or when both parties conclude that continued collaboration is in their mutual interests.

A production-based emphasis toward a low-cost provider strategy usually requires a company to strive for A) product superiority B) continuous cost reductions without sacrificing acceptable quality and essential features C) appealing features and better quality at lower costs than rivals D) whatever differentiating features buyers are willing to pay for

A) continuous cost reductions without sacrificing acceptable quality and essential features

Strategic offensives should, as a general rule, be based on A) exploiting a company's strongest competitive assets - its most valuable resources and capabilities B) instigating and executing the chosen strategy efficiently and effectively C) scoping and scaling an organizations internal and external situation D) molding an organizations character and identity

A) exploiting a company's strongest competitive assets - its most valuable resources and capabilities

The world economy is globalizing at an accelerated pace because A) countries previously open to foreign companies have closed their markets B) countries that previously had market or mixed economies now embrace planned economies C) information technology is exacerbating the importance of geographic distance D) growth minded companies are racing to build stronger competitive positions in the markets of more countries

A) growth minded companies are racing to build stronger competitive positions in the markets of more countries

The advantages of using an acquisition strategy to pursue opportunities in foreign markets include A) having a high level of control and speed as an entry to overcome trade barriers B) allowing a company to achieve scalable economies C) eliminating the costs and risks associated with establishing a foreign business location D) achieving variable product quality and competitive product performance

A) having a high level of control and speed as an entry strategy to overcome trade barriers

A blue-ocean strategy A) is an offensive strike employed by a market leader that is directed at pilfering customers away from unsuspecting rivals to boost profitability B) involves an unexpected (out of the blue) preemptive strike to secure an advantageous position in a fast growing market segment C) works best when a company is the industry's low cost leader D) involves abandoning efforts to beat out competitors in existing markets and instead inventing a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand

A) invoices abandoning efforts to beat out competitors in existing markets and instead inventing a new industry or market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.

Companies aspiring for global market leadership have to prioritize competing in the markers A) of emerging countries B) of advanced industrialized nations C) where they do not possess a strong competitive disadvantage compared with the domestic market leaders D) where business risks are lowest

A) of emerging countries

The objective of differentiation is to A) offer customers something rivals can't, at least in terms of the level of satisfaction B) develop strategies that are different from those of rivals C) establish objectives that are measurable and meaningful when it comes to sales growth D) offer customers a sustainable competitive advantage

A) offer customers something rivals can't, at least in terms of the level of satisfaction

The essence of a broad differentiation strategy is to A) appeal to the high end part of the market and concentrate on providing a top of the line product to consumers B) incorporate a greater number of differentiating features into its product / service than rivals C) outspent rivals on advertising and promotion in order to inform and convince buyers of the value of its differentiating attributes D) offer unique product attributes in ways that are valuable and appealing and that buyers consider the cost worth it.

A) offer unique product attributes in ways that are valuable and appealing and that buyers consider the cost worth it

The difference between political risks and economic risks is that A) political risks stem from instability or weakness in national governments, while economic risks stem from the stability of a country's monetary system, and its economic and regulatory policies B) political risks stem from stability in foreign business, while economic risks stem from an excess of property right protections C) political risks stem from hostility to foreign currencies, while economic risks stem from the instability of the monetary system D) political risks stem from exchange rate fluctuations while economic risks stem from hostility to foreign business

A) political risks stem from instability or weakness in national governments, while economic risks stem from the stability of a country's monetary system and its economic and regulatory policies

The risks of strategic alliances often include all of the following except A) potential for royalty from trustworthy firms B) conflicting objectives and strategies C) deep differences of opinion about how to proceed operationally and strategically D) important differences in corporate values

A) potential for royalty from trustworthy firms

To complement and supplement the choice of one of the five generic competitive strategies, Amazon, Apple, Facebook, and Google pursue offensive actions such as A) playing softball against rivals B) Employing the element of surprise as opposed to doing what rivals expect and are prepared for C) pursuing a marker share leadership strategy D) blocking the avenues open to challengers

A) pursuing a market share leadership strategy

A company that fails to manage its strategic alliance probably has A) refrained from making commitments to its partners and ensured they do the same B) incorporated contractual safeguards C) created a system to manage alliances in a systematic fashion D) established strong interpersonal relationships and established trust

A) refrained from making commitments to its partners and ensured they do the same

Achieving a sure-cost advantage over rivals entails A) Concentrating on the primary activities portion of the value chain and outsourcing all support activities B) being a first mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible. C) selling a mostly standard product and increasing the scale of operation D) minimizing R&D expenses and paying below average wages and salaries to conserve on labor costs

A) selling a mostly standard product and increasing the scale of operation

The culture of a company can be a cost-efficient value chain activity because it can A) allow for safeguarding internalized operating benefits B) distinguishing a company's capacity integration efforts. C) spur worker pride in productivity and continuous improvement D) foster quality technological enhancements

A) spur worker pride in productivity and continuous improvement

First-mover disadvantages (or late-mover advantages) rarely arise when A) the market response is strong and the pioneer gains a monopoly position that enables it to recover its investment B) the costs of pioneering are much higher than being a follower and only negligible learning / experience curve benefits accrue to the pioneer C) rapid market evolution gives fast followers an opening to leapfrog the pioneer with next generation products of their own D) The pioneers products are somewhat primitive and do not live up to buyer expectations, allowing clever followers to win disenchanted buyers with better performing product

A) the market response is strong and the pioneer gains a monopoly position that enables it to recover its investment

Why do companies decide to enter a foreign market? A) to capture economies of scale in product development, manufacturing, or marketing B) to raise input costs through greater pooled purchasing power C) to decrease the rate at which they accumulate experience and move up the learning curve D) to concentrate risk within a broader base of countries, especially when sales are down in one area and the company can undermine sales elsewhere

A) to capture economies of scale in product development, manufacturing, or marketing

Strategic offensives make sense when a company is A) focusing relentlessly on destroying a competitive advantage B) applying resources where rivals are least able to defend themselves C) leveraging its weaknesses to strengthen operating vulnerabilities D) trying to whittle away at a rivals competitive advantage

A) trying to whittle away at a rivals competitive advantage

A global strategy is one in which a company performs all of the following tasks, except it A) uses local brand names to cater to a country's specific needs B) employs the same basic competitive approach in all countries where it operates C) sells much of the same products everywhere D) strives to build goal brands

A) uses local brand names to cater to a country's specific needs

Imagine you are consulting Sonoma brands, manufacturer and marketer of KRAVE artisanal beef jerky, about the comapny's strategic options for expansion into pacific rim markets. What mode of entry would you most likely recommend to Sonoma Brands? A) rely on the pacific rim governments to restrict imports via raising tariffs and local content requirements B) establish a profit sanctuary in the pacific rim C) maintain its US production base and export products to Pacific Rim markets D) agree to a significant level of local content in the manufacture of products

C) Maintain its US production base and export products to Pacific Rim markets

Market size and growth rates in different countries can be influence positively or negatively by A) the ability of management to tailor a strategy to take into consideration differences among country markets B) which countries have the weakest foreign rivals C) competitive rivalry that is only moderate in some countries D) differing population sizes, cultures, income levels, infrastructure, and distribution networks among countries

D) differing population sizes, cultures, income levels, infrastructure, and distribution networks among countries

The Five Generic Competitive Strategies include A) High Cost B) No Cost provider C) Best Margin D) Narrow differentiation

A) Narrow Differentiation (1.Broad, Low-cost Strategy: 2.Broad Differentiation Strategy: 3. Focused Low-cost Strategy: 4.Focused Differentiation Strategy: 5.Best-cost (Hybrid) Strategy)

The major difference between a low-cost provider strategy and a focused low-cost strategy is the A) amount of outsourcing involved B) length of managerial experience curve C) size of the buyer group to which a company is appealing D) number of upscale attributes incorporated into the product offering

A) size of the buyer group to which a company is appealing