Final Exam Review

Which of the following examples uses a focused differentiation strategy?

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

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

Availability of complements

When a firm is able to successfully employ a blue ocean strategy, it will create a competitive advantage by:

Beating rivals on product attributes while offering a better price

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

Power Juice is a firm that produces sports drinks. Because a number of firms in the industry are competing on cost, Power Juice executives have decided to pursue a differentiation strategy. In this case, the company should:

Focus on adding unique product or packaging features that customers will value.

When a differentiator charges a similar price as its competitors in the same strategic group but offers more perceived value, it:

Gains market share from other firms

Five Star Inc. is a knife manufacturer known for its high-quality steel chefs knives, and it follows a differentiation strategy. In this scenario, Five Star Inc should ideally compare its strategic position with

Knife maker that produces high end chefs knives.

Ghada is the CEO of Black Mesa Inc. a publically traded company. The shareholders want ghada on the board of directors despite her recent appointment as the CEO. This decision of shareholders is most likely because Ghada:

Likely to provide the board with valuable inside information

Which of the following is a firm effect that has an impact on the competitive advantage of a firm?

The Value and the cost position of the firm relative to its competitors.

None of your Beeswax dominates the beeswax candle market and wants to expand into beeswax lip balm. How can the firm's strategic leaders determine whether the company should develop a lip balm division interbally, ally with a lip balm manufacturer, or acquire a lip manufacturer?

The strategic leaders need to determine whether the skills needed to create candles and lip balm are similar and whether none of your beeswax creates better beeswax products than its competitors do.

Which of the following best describes a strategic trade off?

The tension between value creation and the pressure to keep cost in check.

<70% of a business...

diversification

70-95% of a business...

dominant business

Jermaine's Choppers sells Chandler Dogies, a special type of motorcycle. The business generates roughly 80 percent of its revenues from selling these motorcycles and about 20 percent on motorcycle repair and service. Jermain's Choppers would be classified as a ___ firm.

dominant business

>95% of a business...

single business