MBA 705 Exam 2 Chapter Key Terms and Questions ACTUAL UPDATED
QUESTIONS AND CORRECT ANSWERS
Technological forces often __________. decimate an entire industry
spawn new industries
vary substantially among industries
The focus-differentiation strategy emphasizes low overall False
costs while serving a narrow segment of the market. The focus-low-cost strategy emphasizes low overall costs while serving a narrow
True segment of the market, producing no-frills products or services for price-sensitive
False customers in a market niche.
Businesses that employ the focus strategy produce and False
market to the entire industry products or services that Businesses that employ the differentiation strategy produce and market to the
can be readily distinguished from those of their entire industry products or services that can be readily distinguished from those
competitors. of their competitors
True
False
The combination strategy can also be referred to as False
multiple strategies. The combination strategy is a single strategy with both low-cost and
True differentiation dimensions whereas multiple strategies involve the employment of
False distinct strategies for different markets simultaneously
, There is no advantage to the reactor strategic type. True
True The reactor lacks a consistent focus.
False
The generic strategy typologies developed by Porter True
and Miles and Snow possess both similarities and Porter's approach is based on economic principles whereas the Miles and Snow
differences. approach describes the philosophical approach of the business to its
True environment. However, some of the same concepts of competition and
False positioning underpin both frameworks.
Midsize businesses tend to be outperformed by their True
smaller and larger counterparts. Midsize business units often perform poorly in comparison with small or large
True competitors because they typically do not possess the advantages associated
False with being flexible like their small rivals or possessing substantial resources like
their large rivals.
A no-frills product targeted at the market at large is A. low-cost strategy
consistent with the ____ _.
Businesses adopting the same generic strategy are C. a strategic group
referred to as _____ _.
Which of the following is not a key advantage of the low- B. It is easier to implement than either the low-cost or differentiation strategy.
cost-differentiation strategy?
Modifying the structure of the organization and/or the D. the low-cost-differentiation strategy
business model to improve competitiveness is consistent
with _____ _.
Analyzers __________. C. display some of the characteristics of both prospectors and defenders
Emerging markets are often more attractive than A. competition is not as intense
developed ones because ___ _.
Business Strategy A strategy delineating how a business unit competes with its rivals; also called
competitive strategy.
Business Unit An organizational entity with its own unique mission, set of competitors, and
industry
Competitive Advantage A state whereby a business unit's successful strategies cannot be easily duplicated
by its competitors
Differentiation Strategy A generic business unit strategy in which a larger business produces and markets
to the entire industry products or services that can be readily distinguished from
those of its competitors
QUESTIONS AND CORRECT ANSWERS
Technological forces often __________. decimate an entire industry
spawn new industries
vary substantially among industries
The focus-differentiation strategy emphasizes low overall False
costs while serving a narrow segment of the market. The focus-low-cost strategy emphasizes low overall costs while serving a narrow
True segment of the market, producing no-frills products or services for price-sensitive
False customers in a market niche.
Businesses that employ the focus strategy produce and False
market to the entire industry products or services that Businesses that employ the differentiation strategy produce and market to the
can be readily distinguished from those of their entire industry products or services that can be readily distinguished from those
competitors. of their competitors
True
False
The combination strategy can also be referred to as False
multiple strategies. The combination strategy is a single strategy with both low-cost and
True differentiation dimensions whereas multiple strategies involve the employment of
False distinct strategies for different markets simultaneously
, There is no advantage to the reactor strategic type. True
True The reactor lacks a consistent focus.
False
The generic strategy typologies developed by Porter True
and Miles and Snow possess both similarities and Porter's approach is based on economic principles whereas the Miles and Snow
differences. approach describes the philosophical approach of the business to its
True environment. However, some of the same concepts of competition and
False positioning underpin both frameworks.
Midsize businesses tend to be outperformed by their True
smaller and larger counterparts. Midsize business units often perform poorly in comparison with small or large
True competitors because they typically do not possess the advantages associated
False with being flexible like their small rivals or possessing substantial resources like
their large rivals.
A no-frills product targeted at the market at large is A. low-cost strategy
consistent with the ____ _.
Businesses adopting the same generic strategy are C. a strategic group
referred to as _____ _.
Which of the following is not a key advantage of the low- B. It is easier to implement than either the low-cost or differentiation strategy.
cost-differentiation strategy?
Modifying the structure of the organization and/or the D. the low-cost-differentiation strategy
business model to improve competitiveness is consistent
with _____ _.
Analyzers __________. C. display some of the characteristics of both prospectors and defenders
Emerging markets are often more attractive than A. competition is not as intense
developed ones because ___ _.
Business Strategy A strategy delineating how a business unit competes with its rivals; also called
competitive strategy.
Business Unit An organizational entity with its own unique mission, set of competitors, and
industry
Competitive Advantage A state whereby a business unit's successful strategies cannot be easily duplicated
by its competitors
Differentiation Strategy A generic business unit strategy in which a larger business produces and markets
to the entire industry products or services that can be readily distinguished from
those of its competitors
