Strategic Management Test 2 Chapters 6 7 Key
Concept & Contrasts Exam Revision Summary
2025-2026 (Graded A+) 100% Answered
Both ______ and _______ affect the awareness and motivation of a firm to undertake
actions and responses. - ANS-B. market commonality ; resource similarity
The larger the resources of a firm taking a competitive action compared with the
resources of the other firms in the industry, the ______ the response will be of these
other firms. - ANS-B. slower
Walmart initially used a focused cost-leadership strategy to compete only in small
communities by using sophisticated logistics systems and efficient purchasing practices
to gain a competitive advantage. The response of local competitors was ________
because they - ANS-B. slow ; lacked the ability to marshal resources
A competitive action can be one of two types, either _______ or _________. - ANS-
strategic ; capital
Amazon has built capabilities around Internet technology and e-commerce to facilitate
information exchanges with its customers in a cost effective manner. This represents
which of the three service dimension? - ANS-B. Richness
Viewing the world through the customer's eyes and constantly seeking ways to create
more value for the company enhances _______ - ANS-D. affiliation with the customer
Before the firm decides what products to offer and what benefits and features they will
have, the firm must decide all the following questions EXCEPT _______ - ANS-B. when
the customer's needs should be satisfied
In the animal food products, food-product needs of owners of companion animals pets
(e.g. dogs and cats) differ from the needs for food and health-related products of those
owning production animals (e.g. livestock) Which of the following aspects of managing
customer relationships does this choice refer to? - ANS-A. Who: Determining the
Customers to Serve
Starbucks determined that all of the following customer needs were important EXCEPT
- ANS-A. Low price
Hyundai allows customers to return their cars if they lose their job within 12 months of
purchase. Which of the following aspects of managing customer relationships is
Hyundai engaged in? - ANS-B. What: Determining which customer needs to satisfy
,An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota,
because his spouse's company transferred her to St. Paul. The decorator is distressed
because the customers in his target market have, in his words, "banal and bourgeois
taste." What is the decorator's problem? - ANS-A. The decorator does not understand
that customer needs are neither right nor wrong, good nor bad
Business -level strategies are concerned specifically with ________ - ANS-A. creating
differences between the firm's position and its competitors
An entrepreneur is investigating starting a company that provides tax advice to small
companies. In order to position his company differently from the existing competitors,
the entrepreneur must ____________ - ANS-B. provide tax advice either in a different
manner or provide a different kind of tax service than competitors
Which of the following are central to implementing value-creating strategies and thereby
satisfying customers' needs? - ANS-C. Core competencies
The analysis of the activity map of a successful company such as southwest airlines
emphasizes how - ANS-C. It is hard for rivals to match a configuration of integrated
activities that to imitate a single activity
By examining the _______ of Southwest Airlines, one can identify the strategic themes
around which it has developed its business strategy. These themes include limited
passenger service, high aircraft utilization, highly productive ground and gate crews,
and so forth. - ANS-A. Activity Map
If Southwest Airlines employees lost their high enthusiasm and commitment to the
company, ________ - ANS-D. Southwest would have lost one of its competitive
advantages and its performance would be threatened
Strategic fit among many activities (in an activity map) is fundamental to ________ -
ANS-C. Sustainability of a firm's competitive advantage
All of the following are considered generic business-level strategies EXCEPT - ANS-A.
product diversification
A firm's core strategy is its _______ strategy. - ANS-B. Business
When selecting a business level strategy, the firm must determine all of the following
EXCEPT _________ - ANS-D. why should these customers' needs be satisfied
The three dimensions of a firm's relationships with customers include all the following
except _________ - ANS-A. Exclusiveness
Which of the following is TRUE? - ANS-B. Customer loyalty has a positive relationship
with firm probability
,The _________ dimension of relationships with customers is particularly important for
social networking sites such as Facebook and MySpace - ANS-A. Reach
A companying a nation target market in its business strategy is - ANS-C. limiting the
group of customer segments served
As the television industry has changed in the last few decades from just three major
networks to a multiplicity of networks, one of the major aspects of business strategy for
the newer networks is ________ than the traditional networks - ANS-B. natter target
market
The effectiveness of any of the generic business-level strategies is contingent upon -
ANS-B. the match between the opportunities and threats in its external market and the
strengths of its internal environment
A cost leadership strategy provides goods or services with features that are ______ -
ANS-A. Acceptable
A cost leadership strategy targets the industry's ________ customers - ANS-A. most
typical
Durable Ceramics, Inc., provides inexpensive ceramic tile to builders of institutional
buildings such as schools, prisons, and public administration buildings. It has always
competed on a cost leadership basis. Most of its products are purchased by a few
commercial construction firms, so it is fairly dependent on these construction firms for
selling its product. Durable Ceramic's next most-efficient competitor, Cost-Less
Ceramics, Inc., earns average returns, whereas Durable earns above-average returns.
The commercial construction firms are putting pressure on Durable to reduce its prices.
If Durable reduces its prices below those of Cost-Less's prices, it is likely that - ANS-D.
Cost-Less will go out of business, and Durable will gain higher power over its customers
Research suggests that having a competitive advantage in ______ creates more value
in the cost leadership strategy than it does in the differentiation strategy - ANS-C.
Logistics
A river barge company can offer cheaper, although slower, per pound transportation of
products to companies when compared with transportation by air, truck, or rail. The river
barge company should first target customers whose companies use - ANS-C. the cost
leadership strategy
Ever-improving levels of efficiency enhance profit margins for a cost-leader. This effects
which of the five forces of industry structure most directly? - ANS-A. potential entrants
, The typical risks of a cost leadership strategy include ____ - ANS-D. Loss of customer
loyalty
When a firm is able to produce non standardized (that is, distinctive) products for
customers who value differentiated features more than they value low cost, the firm is
successfully implementing - ANS-A. A differentiation strategy
A firm successfully implementing a differentiation strategy would expect - ANS-B. to
charge premium prices
The products or services that are differentiated from others have qualities that are -
ANS-A. perceived by the customer to add value for which they will pay a premium
Blind taste-tests have shown that the test of premium-priced vodkas and inexpensive
vodkas are indistinguishable even to regular drinkers of vodka. But the sales of
premium vodkas are thriving. This is an example of - ANS-A. the perception of
perceived prestige and status as a means of differentiating a product
All of the following are examples of differentiated products except _________ - ANS-C.
Great Value brand at Walmart
The use of a differentiation strategy would be expected to be LEAST effective in which
of the following markets? - ANS-A. Commodity goods
All of the following are ways that a good or service can be differentiated EXCEPT -
ANS-C. economies of scale and efficient operations
The differentiation strategy can be effective in controlling the power of rivalry with
existing competitors in an industry because - ANS-C. customers are loyal to brands that
are differentiated in meaningful ways
Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food
made from all-natural ingredients and organically raised lamb. This brand has a strong
following and is recommended by veterinarians who practice in affluent neighborhoods.
Wholesome's main supplier of lamb has announced that the price for lamb will be 15
percent higher next year. - ANS-A. Wholesome will probably be able to pass the cost on
to its customers because they are less sensitive to price increases than the average
buyer
Which of the following is NOT a value-creating activity associated with the differentiation
strategy? - ANS-A. Developing policies to ensure efficient hiring and retention to keep
costs low and implement training to ensure high employee efficiency
A differentiation strategy can be effective in controlling the power of substitutes in an
industry because - ANS-D. customers develop brand loyalty
Concept & Contrasts Exam Revision Summary
2025-2026 (Graded A+) 100% Answered
Both ______ and _______ affect the awareness and motivation of a firm to undertake
actions and responses. - ANS-B. market commonality ; resource similarity
The larger the resources of a firm taking a competitive action compared with the
resources of the other firms in the industry, the ______ the response will be of these
other firms. - ANS-B. slower
Walmart initially used a focused cost-leadership strategy to compete only in small
communities by using sophisticated logistics systems and efficient purchasing practices
to gain a competitive advantage. The response of local competitors was ________
because they - ANS-B. slow ; lacked the ability to marshal resources
A competitive action can be one of two types, either _______ or _________. - ANS-
strategic ; capital
Amazon has built capabilities around Internet technology and e-commerce to facilitate
information exchanges with its customers in a cost effective manner. This represents
which of the three service dimension? - ANS-B. Richness
Viewing the world through the customer's eyes and constantly seeking ways to create
more value for the company enhances _______ - ANS-D. affiliation with the customer
Before the firm decides what products to offer and what benefits and features they will
have, the firm must decide all the following questions EXCEPT _______ - ANS-B. when
the customer's needs should be satisfied
In the animal food products, food-product needs of owners of companion animals pets
(e.g. dogs and cats) differ from the needs for food and health-related products of those
owning production animals (e.g. livestock) Which of the following aspects of managing
customer relationships does this choice refer to? - ANS-A. Who: Determining the
Customers to Serve
Starbucks determined that all of the following customer needs were important EXCEPT
- ANS-A. Low price
Hyundai allows customers to return their cars if they lose their job within 12 months of
purchase. Which of the following aspects of managing customer relationships is
Hyundai engaged in? - ANS-B. What: Determining which customer needs to satisfy
,An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota,
because his spouse's company transferred her to St. Paul. The decorator is distressed
because the customers in his target market have, in his words, "banal and bourgeois
taste." What is the decorator's problem? - ANS-A. The decorator does not understand
that customer needs are neither right nor wrong, good nor bad
Business -level strategies are concerned specifically with ________ - ANS-A. creating
differences between the firm's position and its competitors
An entrepreneur is investigating starting a company that provides tax advice to small
companies. In order to position his company differently from the existing competitors,
the entrepreneur must ____________ - ANS-B. provide tax advice either in a different
manner or provide a different kind of tax service than competitors
Which of the following are central to implementing value-creating strategies and thereby
satisfying customers' needs? - ANS-C. Core competencies
The analysis of the activity map of a successful company such as southwest airlines
emphasizes how - ANS-C. It is hard for rivals to match a configuration of integrated
activities that to imitate a single activity
By examining the _______ of Southwest Airlines, one can identify the strategic themes
around which it has developed its business strategy. These themes include limited
passenger service, high aircraft utilization, highly productive ground and gate crews,
and so forth. - ANS-A. Activity Map
If Southwest Airlines employees lost their high enthusiasm and commitment to the
company, ________ - ANS-D. Southwest would have lost one of its competitive
advantages and its performance would be threatened
Strategic fit among many activities (in an activity map) is fundamental to ________ -
ANS-C. Sustainability of a firm's competitive advantage
All of the following are considered generic business-level strategies EXCEPT - ANS-A.
product diversification
A firm's core strategy is its _______ strategy. - ANS-B. Business
When selecting a business level strategy, the firm must determine all of the following
EXCEPT _________ - ANS-D. why should these customers' needs be satisfied
The three dimensions of a firm's relationships with customers include all the following
except _________ - ANS-A. Exclusiveness
Which of the following is TRUE? - ANS-B. Customer loyalty has a positive relationship
with firm probability
,The _________ dimension of relationships with customers is particularly important for
social networking sites such as Facebook and MySpace - ANS-A. Reach
A companying a nation target market in its business strategy is - ANS-C. limiting the
group of customer segments served
As the television industry has changed in the last few decades from just three major
networks to a multiplicity of networks, one of the major aspects of business strategy for
the newer networks is ________ than the traditional networks - ANS-B. natter target
market
The effectiveness of any of the generic business-level strategies is contingent upon -
ANS-B. the match between the opportunities and threats in its external market and the
strengths of its internal environment
A cost leadership strategy provides goods or services with features that are ______ -
ANS-A. Acceptable
A cost leadership strategy targets the industry's ________ customers - ANS-A. most
typical
Durable Ceramics, Inc., provides inexpensive ceramic tile to builders of institutional
buildings such as schools, prisons, and public administration buildings. It has always
competed on a cost leadership basis. Most of its products are purchased by a few
commercial construction firms, so it is fairly dependent on these construction firms for
selling its product. Durable Ceramic's next most-efficient competitor, Cost-Less
Ceramics, Inc., earns average returns, whereas Durable earns above-average returns.
The commercial construction firms are putting pressure on Durable to reduce its prices.
If Durable reduces its prices below those of Cost-Less's prices, it is likely that - ANS-D.
Cost-Less will go out of business, and Durable will gain higher power over its customers
Research suggests that having a competitive advantage in ______ creates more value
in the cost leadership strategy than it does in the differentiation strategy - ANS-C.
Logistics
A river barge company can offer cheaper, although slower, per pound transportation of
products to companies when compared with transportation by air, truck, or rail. The river
barge company should first target customers whose companies use - ANS-C. the cost
leadership strategy
Ever-improving levels of efficiency enhance profit margins for a cost-leader. This effects
which of the five forces of industry structure most directly? - ANS-A. potential entrants
, The typical risks of a cost leadership strategy include ____ - ANS-D. Loss of customer
loyalty
When a firm is able to produce non standardized (that is, distinctive) products for
customers who value differentiated features more than they value low cost, the firm is
successfully implementing - ANS-A. A differentiation strategy
A firm successfully implementing a differentiation strategy would expect - ANS-B. to
charge premium prices
The products or services that are differentiated from others have qualities that are -
ANS-A. perceived by the customer to add value for which they will pay a premium
Blind taste-tests have shown that the test of premium-priced vodkas and inexpensive
vodkas are indistinguishable even to regular drinkers of vodka. But the sales of
premium vodkas are thriving. This is an example of - ANS-A. the perception of
perceived prestige and status as a means of differentiating a product
All of the following are examples of differentiated products except _________ - ANS-C.
Great Value brand at Walmart
The use of a differentiation strategy would be expected to be LEAST effective in which
of the following markets? - ANS-A. Commodity goods
All of the following are ways that a good or service can be differentiated EXCEPT -
ANS-C. economies of scale and efficient operations
The differentiation strategy can be effective in controlling the power of rivalry with
existing competitors in an industry because - ANS-C. customers are loyal to brands that
are differentiated in meaningful ways
Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food
made from all-natural ingredients and organically raised lamb. This brand has a strong
following and is recommended by veterinarians who practice in affluent neighborhoods.
Wholesome's main supplier of lamb has announced that the price for lamb will be 15
percent higher next year. - ANS-A. Wholesome will probably be able to pass the cost on
to its customers because they are less sensitive to price increases than the average
buyer
Which of the following is NOT a value-creating activity associated with the differentiation
strategy? - ANS-A. Developing policies to ensure efficient hiring and retention to keep
costs low and implement training to ensure high employee efficiency
A differentiation strategy can be effective in controlling the power of substitutes in an
industry because - ANS-D. customers develop brand loyalty
