BUS5117 Strategic Management Unit 4 Graded Quiz — 25 Q&A
Verified Answers 2025
Course:
BUS5117 Strategic Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Graded Quiz Solutions — 25 Q&A with Verified Answers
BUS5117 Unit 4 Graded Quiz — Business-Level Strategy
25 Questions with Verified Answers | Score: 96/100
Question 1:
According to Michael Porter's generic strategies, which two dimensions determine a firm's
business-level strategy?
A) Market share and profitability
B) Competitive advantage and competitive scope
C) Industry attractiveness and competitive position
D) Value creation and cost reduction
Answer: B
Explanation:
Porter argues that business-level strategy is determined by two key dimensions: the source of
competitive advantage (cost or differentiation) and the competitive scope of the target market
(broad or narrow). These dimensions combine to form the four generic strategies: cost leadership,
differentiation, cost focus, and differentiation focus. The other options refer to different strategic
frameworks or general financial metrics.
Question 2:
, A company pursuing a broad differentiation strategy aims to achieve competitive advantage by:
A) Offering products at the lowest possible price in the industry.
B) Targeting a highly specific, niche market with unique products.
C) Creating products or services that are perceived industry-wide as unique and highly valued.
D) Simultaneously driving down costs while aggressively cutting product features.
Answer: C
Explanation:
A broad differentiation strategy involves offering unique attributes that are valued by a wide range
of customers across the industry, allowing the firm to charge a premium price. Option A describes
cost leadership, Option B describes focused differentiation, and Option D is contrary to
differentiation, which usually involves higher costs to create unique features.
Question 3:
A regional coffee chain decides to exclusively target environmentally conscious consumers in the
Pacific Northwest by offering 100% locally sourced, zero-waste packaging, and organic blends at
a premium price. Which generic strategy is this firm implementing?
A) Broad Differentiation
B) Cost Leadership
C) Cost Focus
D) Differentiation Focus
Answer: D
Explanation:
The firm is using a differentiation focus strategy because it targets a narrow, specific market
segment (environmentally conscious consumers in a specific region) and competes based on
unique, premium offerings rather than low price. Cost focus would imply targeting a narrow market
with the lowest prices, while broad differentiation would target the entire market.
Question 4:
According to Porter, a firm that fails to achieve either overall cost leadership or a meaningful
differentiation strategy is considered:
A) A hybrid competitor
B) Stuck in the middle
C) A value innovator
Verified Answers 2025
Course:
BUS5117 Strategic Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Graded Quiz Solutions — 25 Q&A with Verified Answers
BUS5117 Unit 4 Graded Quiz — Business-Level Strategy
25 Questions with Verified Answers | Score: 96/100
Question 1:
According to Michael Porter's generic strategies, which two dimensions determine a firm's
business-level strategy?
A) Market share and profitability
B) Competitive advantage and competitive scope
C) Industry attractiveness and competitive position
D) Value creation and cost reduction
Answer: B
Explanation:
Porter argues that business-level strategy is determined by two key dimensions: the source of
competitive advantage (cost or differentiation) and the competitive scope of the target market
(broad or narrow). These dimensions combine to form the four generic strategies: cost leadership,
differentiation, cost focus, and differentiation focus. The other options refer to different strategic
frameworks or general financial metrics.
Question 2:
, A company pursuing a broad differentiation strategy aims to achieve competitive advantage by:
A) Offering products at the lowest possible price in the industry.
B) Targeting a highly specific, niche market with unique products.
C) Creating products or services that are perceived industry-wide as unique and highly valued.
D) Simultaneously driving down costs while aggressively cutting product features.
Answer: C
Explanation:
A broad differentiation strategy involves offering unique attributes that are valued by a wide range
of customers across the industry, allowing the firm to charge a premium price. Option A describes
cost leadership, Option B describes focused differentiation, and Option D is contrary to
differentiation, which usually involves higher costs to create unique features.
Question 3:
A regional coffee chain decides to exclusively target environmentally conscious consumers in the
Pacific Northwest by offering 100% locally sourced, zero-waste packaging, and organic blends at
a premium price. Which generic strategy is this firm implementing?
A) Broad Differentiation
B) Cost Leadership
C) Cost Focus
D) Differentiation Focus
Answer: D
Explanation:
The firm is using a differentiation focus strategy because it targets a narrow, specific market
segment (environmentally conscious consumers in a specific region) and competes based on
unique, premium offerings rather than low price. Cost focus would imply targeting a narrow market
with the lowest prices, while broad differentiation would target the entire market.
Question 4:
According to Porter, a firm that fails to achieve either overall cost leadership or a meaningful
differentiation strategy is considered:
A) A hybrid competitor
B) Stuck in the middle
C) A value innovator
