INTEGRATIVE BUSINESS STRATEGY Quiz3
Blue Horizon Inc. is an Internet service provider. It provides a router free of charge when users sign up for a two-year wireless service plan. In this plan, users pay in advance irrespective of whether they use the Internet package during the two-year period or not. Which of the following business models does this scenario best illustrate?
A combination of the razor-razor-blade model and the subscription-based business model
Which of the following ratios best expresses inventory turnover
Cost of goods sold/Inventory
Free Color Inc. is an apparel company that caters to the highly price-conscious customers. Through its simple apparel 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 Free Color applying?
Cost-leadership
Which of the following competitively important assets is typically excluded from a firm's balance sheet?
Customer experience
_____ precisely indicates how much of a firm's sales is converted into profits.
Return on revenue
In an economic context, strategy for producers is primarily about
capturing the economic value created as much as possible
A differentiator is least likely to be threatened by increases in input prices due to powerful suppliers when the
differentiator is able to create a significant difference between perceived value and current market prices
Green Curry is a restaurant that caters to the needs of a small percentage of highly health-conscious consumers. It has an all-organic, vegan menu. Since there are very few restaurants that offer the same unique services, customers are willing to pay a premium price for its products and services. In this scenario, Green Curry is following a _____.
focused differentiation strategy
The productivity frontier represents a(n):
set of best-in-class strategic positions the firm can take relating to value creation and low cost at a given point in time.
Economies of scale do NOT allow firms to
spread their variable costs over a larger output.