MGMT 352 Final Purdue Question and
answers already passed 2025/2026
Business Level Strategy - correct answer ✔the goal-directed actions managers take in their quest for
competitive advantage when competing in a single product market
Strategic Trade-Offs - correct answer ✔Choices between a cost or value position
Cost position - correct answer ✔perform similar activities differently
Value position - correct answer ✔perform different activities
Generic business strategies - correct answer ✔Four strategies built upon "scope of strategy" and
"strategic position"
Scope of strategy - correct answer ✔whether a business is a setting wide or broad net, or whether it
has a narrower focus
Strategic position - correct answer ✔Unique value through lower prices or differentiated products
Differentiation - correct answer ✔seeks to create higher value by offering products with unique
features and charging more for them
Cost Leadership - correct answer ✔seeks to create similar value to competitors by offering lower priced
products
Differentiation Strategy - correct answer ✔Unique features that increase value of goods and services
that consumers are willing to pay a higher price for
,Value Drivers - Differentiation - correct answer ✔product features, customer service, complements
Cost Leadership Strategy - correct answer ✔reducing the firm's cost below competitors while offering
acceptable value
Cost drivers that keep costs low - correct answer ✔cost of input factors, economies of scale, learning-
curve effects, experience-curve effects
Risk of differentiation - correct answer ✔products become commoditized, costs can be raised by not
perceived value
Risks of cost-leadership - correct answer ✔new entrants with expertise in cost efficiency, low barriers
to imitation in cost cutting
Blue Ocean Strategy - correct answer ✔Business-level strategy that successfully combines
differentiation and cost-leadership activities using value innovation to reconcile the inherent trade-offs.
Innovation Process - correct answer ✔idea, invention, innovation, imitation
Idea - correct answer ✔a concept, philosophy, image, or issue
Invention - correct answer ✔the transformation of an idea into a new product or process, or the
modification and recombination of existing ones
Innovation - correct answer ✔An improvement of an existing technological product, system, or method
of doing something.
, first-mover advantage - correct answer ✔Occurs when an organization can significantly impact its
market share by being first to market with a competitive advantage
First-mover disadvantage - correct answer ✔uncertainty about demand and technology development
Imitation - correct answer ✔copying a successful innovation
Entrepreneurship - correct answer ✔The process by which people undertake economic risk to innovate
—to create new products, processes, and sometimes new organizations.
strategic entrepreneurship - correct answer ✔the pursuit of innovation using tools and concepts from
strategic management
social entrepreneurship - correct answer ✔the pursuit of social goals while creating a profitable
business
Industry Life Cycle - correct answer ✔the stages of introduction, growth, maturity, and decline that
typically occur over the life of an industry
Introduction Stage - correct answer ✔stage of the product life cycle when innovators start buying the
product
Growth Stage - correct answer ✔the second stage of the product life cycle when sales typically grow at
an increasing rate, many competitors enter the market, large companies may start to acquire small
pioneering firms, and profits are healthy
product innovation - correct answer ✔new or recombined knowledge embodied in new products
answers already passed 2025/2026
Business Level Strategy - correct answer ✔the goal-directed actions managers take in their quest for
competitive advantage when competing in a single product market
Strategic Trade-Offs - correct answer ✔Choices between a cost or value position
Cost position - correct answer ✔perform similar activities differently
Value position - correct answer ✔perform different activities
Generic business strategies - correct answer ✔Four strategies built upon "scope of strategy" and
"strategic position"
Scope of strategy - correct answer ✔whether a business is a setting wide or broad net, or whether it
has a narrower focus
Strategic position - correct answer ✔Unique value through lower prices or differentiated products
Differentiation - correct answer ✔seeks to create higher value by offering products with unique
features and charging more for them
Cost Leadership - correct answer ✔seeks to create similar value to competitors by offering lower priced
products
Differentiation Strategy - correct answer ✔Unique features that increase value of goods and services
that consumers are willing to pay a higher price for
,Value Drivers - Differentiation - correct answer ✔product features, customer service, complements
Cost Leadership Strategy - correct answer ✔reducing the firm's cost below competitors while offering
acceptable value
Cost drivers that keep costs low - correct answer ✔cost of input factors, economies of scale, learning-
curve effects, experience-curve effects
Risk of differentiation - correct answer ✔products become commoditized, costs can be raised by not
perceived value
Risks of cost-leadership - correct answer ✔new entrants with expertise in cost efficiency, low barriers
to imitation in cost cutting
Blue Ocean Strategy - correct answer ✔Business-level strategy that successfully combines
differentiation and cost-leadership activities using value innovation to reconcile the inherent trade-offs.
Innovation Process - correct answer ✔idea, invention, innovation, imitation
Idea - correct answer ✔a concept, philosophy, image, or issue
Invention - correct answer ✔the transformation of an idea into a new product or process, or the
modification and recombination of existing ones
Innovation - correct answer ✔An improvement of an existing technological product, system, or method
of doing something.
, first-mover advantage - correct answer ✔Occurs when an organization can significantly impact its
market share by being first to market with a competitive advantage
First-mover disadvantage - correct answer ✔uncertainty about demand and technology development
Imitation - correct answer ✔copying a successful innovation
Entrepreneurship - correct answer ✔The process by which people undertake economic risk to innovate
—to create new products, processes, and sometimes new organizations.
strategic entrepreneurship - correct answer ✔the pursuit of innovation using tools and concepts from
strategic management
social entrepreneurship - correct answer ✔the pursuit of social goals while creating a profitable
business
Industry Life Cycle - correct answer ✔the stages of introduction, growth, maturity, and decline that
typically occur over the life of an industry
Introduction Stage - correct answer ✔stage of the product life cycle when innovators start buying the
product
Growth Stage - correct answer ✔the second stage of the product life cycle when sales typically grow at
an increasing rate, many competitors enter the market, large companies may start to acquire small
pioneering firms, and profits are healthy
product innovation - correct answer ✔new or recombined knowledge embodied in new products
