MANAGEMENT 455 CHAPTER 6 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

MANAGEMENT 455 CHAPTER 6 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Sometimes it makes sense for a company to go on the offensive to improve its market position and business performance. The best offensives tend to incorporate the following EXCEPT: A. focusing relentlessly on building a competitive advantage. B. applying resources where rivals are least able to defend themselves. C. using a strategic offense to allow the company to leverage its weaknesses to strengthen operating vulnerabilities. D. employing the elements of surprise as opposed to doing what rivals expect and are prepared for. E. displaying a strong bias for swift, decisive, and overwhelming actions to overpower rivals. - Answers C. using a strategic offense to allow the company to leverage its weaknesses to strengthen operating vulnerabilities. Once a company has decided to employ a particular generic competitive strategy, then it must make the following additional strategic choices, EXCEPT whether to: A. focus on building competitive advantages. B. employ the element of surprise as opposed to doing what rivals expect and are prepared for. C. display a strong bias for swift, decisive, and overwhelming actions to overpower rivals. D. create and deploy company resources to cause rivals to defend themselves. E. pay special attention to buyer segments that a rival is already serving. - Answers E. pay special attention to buyer segments that a rival is already serving. Which of the following is NOT a strategic choice that a company must make to complement and supplement its choice of one of the five generic competitive strategies? A. Whether to focus on building competitive advantages B. Whether to employ the element of surprise as opposed to doing what rivals expect and are prepared for C. Whether to employ a market share leadership strategy D. Whether to display a strong bias for swift, decisive, and overwhelming actions to overpower E. Whether to create and deploy company resources to cause rivals to defend themselves - Answers C. Whether to employ a market share leadership strategy Strategic offensives should, as a general rule, be based on: A. exploiting a company's strongest competitive assets—its most valuable resources and capabilities. B. instigating and executing the chosen strategy efficiently and effectively. C. scoping and scaling an organization's internal and external situation. D. molding an organization's character and identity. E. satisfying the buyer's needs that the company seeks to meet. - Answers A. exploiting a company's strongest competitive assets—its most valuable resources and capabilities. The principal offensive strategy options include all of the following EXCEPT: A. using a cost advantage to attack competitors on the basis of lower price or better product value. B. using hit-and-run or guerrilla warfare tactics to grab sales and market share from complacent or distracted rivals. C. launching a preemptive strike to secure an advantageous position that rivals are prevented or discouraged from duplicating. D. pursuing continuous product innovation to draw sales and market share away from less innovative rivals. E. initiating a market threat and counterattack simultaneously to effect a distraction. - Answers E. initiating a market threat and counterattack simultaneously to effect a distraction. Which of the following is NOT a principal offensive strategy option? A. Leapfrogging competitors by being first to market with next-generation products B. Using hit-and-run or guerrilla warfare tactics to grab sales and market share C. Launching a preemptive strike to secure an advantageous position that rivals are prevented or discouraged from duplicating D. Pursuing continuous product innovation to draw sales and market share away from rivals E. Being the final competitor to market a next-generation product so as to guarantee the product is operationally sound - Answers E. Being the final competitor to market a next-generation product so as to guarantee the product is operationally sound An offensive to yield good results can be short if: A. buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign). B. competition creates an appealing new product. C. the technology needs debugging. D. new production capacity needs to be installed. E. consumer acceptance of an innovative product takes time. - Answers A. buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign). Which of the following rivals make the best targets for an offensive attack? A. Firms with weaknesses in areas where the challenger is strong B. Companies that are financially strong and possess favorable competitive market positioning C. Large national firms with vast capabilities and intermittent trivial resource deficiencies D. Strong and financially secure market leaders E. Small local and regional firms with unrestrained capabilities - Answers A. Firms with weaknesses in areas where the challenger is strong Challenging a struggling rival can do all of the following EXCEPT: A. sap the rival's financial strength and competitive position. B. weaken the rival's resolve. C. accelerate the rival's exit from the market. D. threaten the rival's overall survival in the market. E. strengthen the rival's loyal following. - Answers E. strengthen the rival's loyal following. A blue-ocean strategy: A. is an offensive strike employed by a market leader that is directed at pilfering customers away from unsuspecting rivals to boost profitability. B. involves an unexpected (out-of- the-blue) preemptive strike to secure an advantageous position in a fast-growing market segment. C. works best when a company is the industry's low-cost leader. D. involves abandoning efforts to beat out competitors in existing markets and instead invent a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand. E. involves the use of highly creative, never-used-before strategic moves to attack the competitive weaknesses of rivals. - Answers D. involves abandoning efforts to beat out competitors in existing markets and instead invent a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand. Which of the following is NOT an example of a company that uses blue-ocean market strategy? A. eBay's online auction industry B. NetJets' fractional jet ownership C. Drybar's hair blowouts D. Cirque de Soleil's live entertainment E. Walmart's logistics and distribution - Answers E. Walmart's logistics and distribution All firms are subject to offensive challenges from rivals. Which of the following is NOT among the intent of the best defensive move? A. Lower the risk of being attacked B. Weaken the impact of any attack that occurs C. Pressure challengers to aim their efforts at other rivals D. Help protect a competitive advantage E. Harm the firm's competitive position - Answers E. Harm the firm's competitive position Which of the following is NOT a purpose of a defensive strategy? A. To increase the risk of having to defend an attack B. To weaken the impact of any attack that occurs C. To pressure challengers to aim their efforts at other rivals D. To help protect a competitive advantage E. To decrease the risk of being attacked - Answers A. To increase the risk of having to defend an attack Which of the following ways are employed by defending companies to fend off a competitive attack? A. Remain steadfast to current product features and models to ensure resources are not diverted toward unproductive efforts. B. Exclude volume discounts or better financing terms from the strategic response in order to maintain current profitability levels. C. Gain product line exclusivity to force competitors to use other distributors. D. Trimming the length of warranties to save money. E. Stay away from competitor's clients since their loyalty will not allow them to switch. - Answers C. Gain product line exclusivity to force competitors to use other distributors. What is the goal of signaling a challenger that strong retaliation is likely in the event of an attack? A. To alleviate their fears by committing to reduce the costs of value chain activities B. To cause the challenger to begin the attack instead of waiting C. To dissuade challengers from attacking or diverting them into using less threatening options D. To create collaborative relationships with challengers E. To insulate other firms from adverse impacts resulting from the challenge - Answers C. To dissuade challengers from attacking or diverting them into using less threatening options Which of the following signals would NOT warn challengers that strong retaliation is likely? A. Publicly announcing management's commitment to maintain market share B. Publicly committing to a company policy of matching competitors' terms or pricing C. Maintaining a war chest of cash and marketable securities D. Making a strong counter-response to the moves of weak competitors E. Announcing strong quarterly earnings potential to financial analysts - Answers E. Announcing strong quarterly earnings potential to financial analysts Being first to initiate a particular strategic move can have a high payoff in all of the following EXCEPT when: A. pioneering helps build up a firm's image and reputation and creates strong brand loyalty. B. buyers remain strongly loyal to pioneering firms because of incentives and switching costs barriers. C. there is a steep learning curve and when learning can be kept proprietary. D. moving first can constitute a preemptive strike, making imitation extra hard or unlikely. E. market uncertainties make it difficult to ascertain what will eventually succeed. - Answers E. market uncertainties make it difficult to ascertain what will eventually succeed. In which of the following instances is being a first-mover NOT particularly advantageous? A. When moving first with a preemptive strike makes imitation difficult or unlikely B. When first-time buyers remain strongly loyal to pioneering firms in making repeat purchases C. When early commitments to new technologies, types of components, or emerging distribution channels produce an absolute cost advantage over rivals D. When markets are slow to accept the innovative product offering of a first-mover, and fast followers possess sufficient resources and marketing muscle to overtake a first mover E. When being a pioneer helps build a firm's image and reputation with buyers - Answers D. When markets are slow to accept the innovative product offering of a first-mover, and fast followers possess sufficient resources and marketing muscle to overtake a first mover First-mover disadvantages (or late-mover advantages) rarely ever arise when: