GBA chapter1

Different companies across different industries adopt any one of the five generic strategies to gain competitive advantage. Which of the following is most likely to use a low-cost provider strategy?

A baby products retailer sells unassembled baby furniture produced in China.

Which of the following companies would have the LEAST bargaining power with its suppliers?

A company that offers high-cost specialized products that could be used only by customers of a certain age group

BloomsJay Resorts Inc. has multiple tropical resorts in various locations. In a crowded market that caters to all kinds of consumers, this resort caters mainly to gays with guaranteed hassle-free holiday experience at a premium price. What strategy is BloomsJay using to gain competitive advantage?

A focused differentiation strategy

Easy DriveIn, a fast food facility, offers products at lower prices than its competitors in the market and has a drive-through-only operation with no indoor seating. What strategy is Easy DriveIn using to gain competitive advantage?

A focused low-cost strategy

To which of the following firms is the term "repeatedly evolving strategy" MOST applicable?

A mobile company, established in a saturated market, that aims at quarterly release of new products

Which of the following airlines does NOT employ a low-cost provider strategy?

Airline 2 offers low prices on long-distance flights and has long service times for its planes between flights.

Winning a sustainable competitive edge over competitors does NOT hinge on which of the following?

Building products and distributing them at low prices to a broad customer base irrespective of manufacturing cost

Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage?

Striving to be the industry's high-price provider

A multinational company enters a new geographical location, considered an emerging market, with its established product line: laptops and tablets. Which of the following would NOT serve as a good strategic move to enhance profits?

Creating a sales plan that aims to enhance initial sales and market share with low prices based on high operational costs

Which of the following is NOT typically a trigger to an evolving strategy?

The need to respond to short-term swings in the stock market

FaberRoad, a respected courier brand, is fast losing its market share to competitors who do overnight deliveries of packages or offer lower prices. The company's research department has found that many customers care more about knowing exactly when a package will arrive than getting it the next day. Which strategy would best address the current state of FaberRoad and help it regain its market?

Developing radio tags that could be attached to packages to allow for real-time tracking by customers' PCs and mobile phones

Telsteer Mobil, a smartphone manufacturer, is working on developing its next-generation products. It has decided on a strategy of focusing on a narrow buyer segment and outcompeting rivals by offering buyers customized product features for specialized needs and tastes. What basic strategic approach has Telsteer decided upon?

Focused differentiation

Which of the following is NOT a frequently used strategic approach to set a company apart from rivals and achieve a sustainable competitive advantage?

Focusing on a broad buyer segment and offering buyers a very low cost and highly customized attributes that meet their specialized needs better than rivals' products

Which of the following is NOT one of the managerial considerations in determining how to compete successfully?

How can a company modify its entire product line to emphasize its internal service attributes

A company's strategy stands a better chance of succeeding when:

it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals.

A pharmaceutical company functioning in France for the last 10 years has moderate sales in a crowded market with competitors offering drugs with similar efficacy and safety precautions, but with better sales. The greatest challenge is to increase the prescription of their drugs. What would be the MOST effective strategy to improve sales performance in the existing market?

Modifying marketing communication to increase brand familiarity within key physician segments

It is normal for a company's strategy to end up being:

a blend of proactive actions to improve the company's competitiveness and financial performance, and adaptive reactions to unanticipated developments and fresh market conditions.

Changing circumstances and ongoing managerial efforts to improve the strategy:

account for Why a Companys Strategy Evolves over Time.

Adapting to new conditions like new innovations by competitors, fast-changing technological developments, and constantly evaluating what is working result in:

an emergent strategy

Giving customers more value for the money by satisfying their expectations on key quality features, performance, and/or service attributes while beating their price expectations is a:

best-cost provider strategy

To improve performance, there are many different avenues for outcompeting rivals such as:

confining operations to local or regional markets or developing product superiority or concentrating on a narrow product lineup.

A company's strategy and its quest for competitive advantage are tightly connected because:

crafting a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance.

The objectives of a well-crafted strategy require management to strive to:

develop lasting success that can support growth and secure the company's future over the long term.

The pattern of actions and business approaches that would NOT define a company's strategy include actions to:

gain sales and market share with lower prices despite increased costs.

A creative and distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage:

is a company's most reliable ticket to above-average profitability

What separates a powerful strategy from a run-of-the-mill or ineffective one is:

management's ability to forge a series of actions, both in the marketplace and internally, that sets the company apart from rivals, and produces sustainable competitive advantage.

In crafting a company's strategy, managers:

need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.

A company achieves a competitive advantage when it:

provides buyers with superior value compared to rival sellers or offers the same value at a lower cost.

Managers must be prepared to modify their strategy in response to all of the following EXCEPT

public pronouncements from rivals about monthly profit margins.

A company's strategy consists of the action plan management is taking to:

stake out a unique market position and achieve superior profitability.

A company's strategy is NOT concerned with management's choices about how to:

stake out the same market potion as successful rival companies

The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its:

strategy

A company's strategy is a "work in progress" and evolves over time because of:

the ongoing need of company managers to react and respond to changing market and competitive conditions.