MNGT 4800 Final- Adams (Graded A+)

Business Level Strategy correct answers goal directed actions managers take in their quest for competitive advantage when competing in a single product market Cost Leadership correct answers positioning strategy centered around producing products at lower costs than your competitors. Managers manipulate cost-drivers to keep costs low. example: offering a basic service but then charging a premium for the extra add-ons Differentiation correct answers positioning strategy in which product features are the most important cost-drivers. Complements add value when consumed as a bundle. example: BMW M3 Integration correct answers positioning strategy which combines cost leadership and differentiation. Investments are complements. Goal is a larger economic value (v-c) "Stuck in the Middle" correct answers an organization succeeds at neither a differentiation nor a cost-leadership strategy benefits of cost-leadership correct answers protected from competitors during a price war risks of cost-leadership correct answers If a new entrant arrives, new capabilities are needed benefits of differentiation correct answers decreased rivalry, higher costs of imitation risks of differentiation correct answers might overshoot features needed and vulnerable to price sensitive consumers Focused (Niche) Strategic Targeting correct answers concentrated attention on a narrow piece of the market. Broad Strategic Targeting correct answers attention on a whole industry Learning Curve correct answers shows that if a task is performed over and over, the time that the task takes will decline -an upward slope= more learning. steeper is better. experience curve correct answers combines economies of scale and learning curves. Technology allows this curve to be steeper. this is a DOWNWARD CURVE. Systematic production cost reductions that occur over the life of a product Problems with being "Stuck in the middle" correct answers perform poorly because of lack of clear market or competitive pricing. Customers don't know what to expect, and employees don't understand their priorities of work performance