BCOR 2304 Strategy and Entrepreneurship (Chapter 6)
Which of the following are input factors?
labor raw materials information technology services capital
A ______ strategy requires achieving the lowest costs in the industry while maintaining a level of value that is acceptable to customers.
cost-leadership
In terms of productivity, which of the following is true of learning curves?
they go down
Unique features and attributes that differentiate a product from competitors' offerings allow the firm to ______
charge premium pricing
A tablet manufacturer that includes a free stylus with every purchase is using ______ to enhance users' experiences and increase the perceived value of its tablets.
complements
Value drivers known as ______ add value to a product or service when they are consumed in tandem with the focal product.
complements
An auto manufacturer that has access to cheaper labor and raw materials than its rivals will have a competitive advantage regarding lower cost of ______ factors.
input
The most significant challenge JetBlue faced in implementing its business strategy was:
reconciling the trade-offs between cutting costs and providing superior service
Which capability is required to create superior product features?
R&D
In addition to having the lowest cost, a low-cost leader is likely to have ______.
a large market share
The goal of a _____________ strategy is to achieve expenses below those of competitors while maintaining similar value. A firm with this strategy could or could not achieve differentiation parity.
cost leadership
As JetBlue grew, which of the following occurred during the years following 2007?
It suffered a competitive disadvantage.
Why does the learning curve go down when productivity is considered?
As workers repeatedly engage in an activity, they become more efficient, driving down costs.
What is one of the benefits of pursuing a differentiation strategy when it comes to the power of suppliers?
Differentiation provides protection against an increase in input prices.
A producer of consumer headphones that successfully differentiates its products with a patented noise-canceling technology and celebrity endorsements will enjoy which of the following benefits?
the ability to charge a premium price less intense competition from imitators
Economies of scale are ______.
decreases in cost per unit as output increases
A(n) ______ strategy attempts to increase the perceived value of a product while controlling costs.
differentiation
Which of the following are considered the two generic business-level strategies?
Differentiation and Cost-Leadership
Business-level strategy addresses which overarching question?
How should we compete?
Which of the following best defines economies of scope?
They are the savings that come from producing two or more outputs at less cost than producing each output individually.
Which competitive forces can result in the erosion of margins for both differentiation and cost-leadership business strategies?
Threat of entry Power of suppliers Power of buyers
A company's goal-directed plans regarding how to compete for advantage is known as the firm's ______
business-level strategy
The concept of a(n) ______ attempts to combine both learning effects and process improvements.
experience curve
Two important features that managers can adjust in an effort to improve the firm's strategic position are ______
product features and customer service
A manufacturer of electronic components can use its manufacturing machines to produce many different components such as semiconductors, sensors, and capacitors. In this case, the firm benefits from an economy of ________________, reducing overall production costs by finding multiple uses for its components and facilities.
scope
Which value driver would be the focus of a company that sells products that are similar to competing products and that provides a 60-day guarantee with no questions asked?
customer service
A cost leader can achieve a competitive advantage by ______.
reducing costs below those of competitors while maintaining a similar value
Which two of the following variables can managers primarily manipulate in order to answer the question, "How should we compete?"
Value and Cost
If two firms produce very similar products at the same rate of output, and firm A is able to achieve lower per-unit costs than firm B by taking advantage of a new manufacturing technology, firm A is benefiting from
an experience-curve effect based on process innovation.
Positive adjustments in product features, customer service, and complements may enable managers to ______.
improve the firm's strategic position
The perceived value that a company creates for consumers less the company's costs to create the value equals ______
the economic value created
How to compete on a business level is defined by the variables value and cost. Together they define the ______
economic value created
A firm that increases its output of a given product and experiences a simultaneous decrease in per unit costs is taking advantage of ______
economies of scale
Which of the following are examples of ways that a large retailing firm can increase the perceived value of its offerings by focusing on customer service?
offering a "no questions asked" return policy maintaining a domestic call center that is open 24 hours per day
Which type of strategy is being used if a company offers a product at a lower cost than its competitors?
cost-leadership strategy