MBA 705 - Fowler - Weeks 5-6 Test
Questions All Solved 2026 Edition.
Support corporate- and business-level strategies at the business unit's functional levels, such as
marketing, finance, production, purchasing, HR, and IS. - Answer Functional Strategies
Often used to refer to strategic considerations at the functional level, with a day-to-day,
practical connotation. - Answer Tactics
Determines the effectiveness of the unit's business- and firm-level strategies, with
interdepartmental impact on operations and overall performance. - Answer Integration of
Functional Strategies
Address a shorter time span and are more specific than business strategies, focusing on strategy
execution. - Answer Functional Strategies Time Span
Typically crafted by departmental managers responsible for implementing them, after corporate
and business strategies have been established. - Answer Functional Strategy Development
Managers in all functional areas should understand how areas integrate and work together to
formulate functional strategies that fit together and support higher-level strategies. - Answer
Interrelationship Understanding
Summarizes the way functional strategies typically integrate with the business strategy, as per
Table 8.1. - Answer Porter's Cost Leadership and Differentiation Strategies
Emphasizes low-cost distribution and advertising, aligning with a low-cost business strategy. -
Answer Marketing Strategy - Low-Cost
Emphasizes differentiated distribution and advertising on a large scale, aligning with a
differentiation business strategy. - Answer Marketing Strategy - Differentiation
Emphasizes differentiated distribution and advertising on a large scale at the lowest cost
possible, aligning with a low-cost-differentiation business strategy. - Answer Marketing
Strategy - Low-Cost-Differentiation
Lowers financial costs by borrowing when credit costs are low and issuing stock when the
market is strong, aligning with a low-cost business strategy. - Answer Finance Strategy - Low-
Cost
, Emphasizes obtaining resources and funding output improvements for innovations even when
financial costs may be high, aligning with a differentiation business strategy. - Answer Finance
Strategy - Differentiation
Emphasizes obtaining resources and funding output improvements or innovations at the lowest
possible cost, aligning with a low-cost-differentiation business strategy. - Answer Finance
Strategy - Low-Cost-Differentiation
Emphasizes operation efficiencies through learning, economics of scale, and capital-labor
substitution possibilities, aligning with a low-cost business strategy. - Answer Production
Strategy - Low-Cost
Emphasizes quality in operations even when the cost of doing so is high, aligning with a
differentiation business strategy. - Answer Production Strategy - Differentiation
Emphasizes quality in operations when the cost of doing so is relatively low, aligning with a low-
cost-differentiation business strategy. - Answer Production Strategy - Low-Cost-Differentiation
Purchases at low costs through quality discounts, operates storage and warehouse facilities, and
controls inventory efficiently, aligning with a low-cost business strategy. - Answer Purchasing
Strategy - Low-Cost
Purchases high-quality inputs even if they cost more, conducts storage, warehouse, and
inventory activities with extensive care, aligning with a differentiation business strategy. -
Answer Purchasing Strategy - Differentiation
Purchases high-quality inputs but only if costs are low, conducts storage, warehouse, and
inventory activities with care but only if costs are relatively low, aligning with a low-cost-
differentiation business strategy. - Answer Purchasing Strategy - Low-Cost-Differentiation
Emphasizes process R & D aimed at lowering costs of operation and distribution, aligning with a
low-cost business strategy. - Answer Research and Development Strategy - Low-Cost
Emphasizes product and service R & D aimed at enhancing the outputs of the business, aligning
with a differentiation business strategy. - Answer Research and Development Strategy -
Differentiation
Emphasizes both product and service R & D, as well as process R & D, aligning with a low-cost-
differentiation business strategy. - Answer Research and Development Strategy - Low-Cost-
Differentiation
Questions All Solved 2026 Edition.
Support corporate- and business-level strategies at the business unit's functional levels, such as
marketing, finance, production, purchasing, HR, and IS. - Answer Functional Strategies
Often used to refer to strategic considerations at the functional level, with a day-to-day,
practical connotation. - Answer Tactics
Determines the effectiveness of the unit's business- and firm-level strategies, with
interdepartmental impact on operations and overall performance. - Answer Integration of
Functional Strategies
Address a shorter time span and are more specific than business strategies, focusing on strategy
execution. - Answer Functional Strategies Time Span
Typically crafted by departmental managers responsible for implementing them, after corporate
and business strategies have been established. - Answer Functional Strategy Development
Managers in all functional areas should understand how areas integrate and work together to
formulate functional strategies that fit together and support higher-level strategies. - Answer
Interrelationship Understanding
Summarizes the way functional strategies typically integrate with the business strategy, as per
Table 8.1. - Answer Porter's Cost Leadership and Differentiation Strategies
Emphasizes low-cost distribution and advertising, aligning with a low-cost business strategy. -
Answer Marketing Strategy - Low-Cost
Emphasizes differentiated distribution and advertising on a large scale, aligning with a
differentiation business strategy. - Answer Marketing Strategy - Differentiation
Emphasizes differentiated distribution and advertising on a large scale at the lowest cost
possible, aligning with a low-cost-differentiation business strategy. - Answer Marketing
Strategy - Low-Cost-Differentiation
Lowers financial costs by borrowing when credit costs are low and issuing stock when the
market is strong, aligning with a low-cost business strategy. - Answer Finance Strategy - Low-
Cost
, Emphasizes obtaining resources and funding output improvements for innovations even when
financial costs may be high, aligning with a differentiation business strategy. - Answer Finance
Strategy - Differentiation
Emphasizes obtaining resources and funding output improvements or innovations at the lowest
possible cost, aligning with a low-cost-differentiation business strategy. - Answer Finance
Strategy - Low-Cost-Differentiation
Emphasizes operation efficiencies through learning, economics of scale, and capital-labor
substitution possibilities, aligning with a low-cost business strategy. - Answer Production
Strategy - Low-Cost
Emphasizes quality in operations even when the cost of doing so is high, aligning with a
differentiation business strategy. - Answer Production Strategy - Differentiation
Emphasizes quality in operations when the cost of doing so is relatively low, aligning with a low-
cost-differentiation business strategy. - Answer Production Strategy - Low-Cost-Differentiation
Purchases at low costs through quality discounts, operates storage and warehouse facilities, and
controls inventory efficiently, aligning with a low-cost business strategy. - Answer Purchasing
Strategy - Low-Cost
Purchases high-quality inputs even if they cost more, conducts storage, warehouse, and
inventory activities with extensive care, aligning with a differentiation business strategy. -
Answer Purchasing Strategy - Differentiation
Purchases high-quality inputs but only if costs are low, conducts storage, warehouse, and
inventory activities with care but only if costs are relatively low, aligning with a low-cost-
differentiation business strategy. - Answer Purchasing Strategy - Low-Cost-Differentiation
Emphasizes process R & D aimed at lowering costs of operation and distribution, aligning with a
low-cost business strategy. - Answer Research and Development Strategy - Low-Cost
Emphasizes product and service R & D aimed at enhancing the outputs of the business, aligning
with a differentiation business strategy. - Answer Research and Development Strategy -
Differentiation
Emphasizes both product and service R & D, as well as process R & D, aligning with a low-cost-
differentiation business strategy. - Answer Research and Development Strategy - Low-Cost-
Differentiation
