MGMT 449 Exam 2 || 100% Verified Answers.
Cost driver correct answers a factor that has a strong influence on a company's costs (can be
asset or activity-based)
Value driver correct answers a factor that can have a strong differentiating effect
Low-cost provider correct answers charging a lower price than rivals with similar caliber product
offerings
Broad differentiation correct answers differentiating the firm's product offering from rivals' with
attributes that appeal to a broad spectrum of buyers
Focused low-cost correct answers concentrating on a narrow price
Focused differentiation correct answers concentrating on a narrow buyer segment by meeting
specific tastes and requirements of niche members
Best-cost provider correct answers giving customers more value for the money by offering
upscale product attributes at a lower cost than rivals
Blue-ocean strategy correct answers offers growth in revenues and profit by discovering or
inventing new industry segments that create an altogether new demand. A company finds or
invents a new industry. Ex: Ford invents assembly line and takes over auto industry
First mover advantage correct answers the advantage gained by the initial significant occupant of
a market segment
Fast follower correct answers leapfrogging a first mover's products with more attractive next-
version products
, Later mover correct answers the advantage gained by not being one of the first entities to move
into a new market segment
Scope of the firm correct answers Range of activities performed internally, breadth of its
products and services offerings, extent of the geographic market presence and its mix of
businesses, size of its competitive footprint in the market or industry
Horizontal scope correct answers the range of product and service segments that a firm serves
within its focal market
Vertical scope correct answers the extent to which a firm's internal activities encompass one,
some, many, or all of the activities that make up an industry's entire value chain system, ranging
from raw-material production to final sales and service activities
Vertical integration correct answers the combination in one company of two or more stages of
production normally operated by separate companies
Backward integration correct answers involves entry into activities previously performed by
suppliers or other enterprises positioned along earlier stages of the industry value chain system.
Closer to the beginning of the production process
Forward integration correct answers involves entry into value chain system activities closer to
the end user
Outsourcing correct answers contracting out certain value chain activities that are normally
performed in-house to outside vendors
Strategic alliance correct answers a formal agreement between two or more separate companies
in which they agree to work cooperatively toward some common objective
Cost driver correct answers a factor that has a strong influence on a company's costs (can be
asset or activity-based)
Value driver correct answers a factor that can have a strong differentiating effect
Low-cost provider correct answers charging a lower price than rivals with similar caliber product
offerings
Broad differentiation correct answers differentiating the firm's product offering from rivals' with
attributes that appeal to a broad spectrum of buyers
Focused low-cost correct answers concentrating on a narrow price
Focused differentiation correct answers concentrating on a narrow buyer segment by meeting
specific tastes and requirements of niche members
Best-cost provider correct answers giving customers more value for the money by offering
upscale product attributes at a lower cost than rivals
Blue-ocean strategy correct answers offers growth in revenues and profit by discovering or
inventing new industry segments that create an altogether new demand. A company finds or
invents a new industry. Ex: Ford invents assembly line and takes over auto industry
First mover advantage correct answers the advantage gained by the initial significant occupant of
a market segment
Fast follower correct answers leapfrogging a first mover's products with more attractive next-
version products
, Later mover correct answers the advantage gained by not being one of the first entities to move
into a new market segment
Scope of the firm correct answers Range of activities performed internally, breadth of its
products and services offerings, extent of the geographic market presence and its mix of
businesses, size of its competitive footprint in the market or industry
Horizontal scope correct answers the range of product and service segments that a firm serves
within its focal market
Vertical scope correct answers the extent to which a firm's internal activities encompass one,
some, many, or all of the activities that make up an industry's entire value chain system, ranging
from raw-material production to final sales and service activities
Vertical integration correct answers the combination in one company of two or more stages of
production normally operated by separate companies
Backward integration correct answers involves entry into activities previously performed by
suppliers or other enterprises positioned along earlier stages of the industry value chain system.
Closer to the beginning of the production process
Forward integration correct answers involves entry into value chain system activities closer to
the end user
Outsourcing correct answers contracting out certain value chain activities that are normally
performed in-house to outside vendors
Strategic alliance correct answers a formal agreement between two or more separate companies
in which they agree to work cooperatively toward some common objective
