MAN 4720 Final Exam UCF Questions and Answers Already Passed

MAN 4720 Final Exam UCF Questions and Answers Already Passed A generic business strategy is ? A general way of positioning a firm's business-level strategy within an industry What are the two dimensions on which generic business strategies are classified? a. Breadth of competitive scope/Source of competitive advantage b. Breadth of product line/Source of competitive advantage c. Breadth of competitive scope/Extent of vertical integration d. Breadth of product line/Extent of vertical integration a. Breadth of competitive scope/Source of competitive advantage What are the four main generic strategies? Cost Leadership (overall Differentiation Focused low cost Focused differentiation Generic Business Strategies: Two Dimensions Source of Competitive Advantage - Low cost - Uniqueness Breadth of Competitive Scope (Strategic Target) - Broad Target Market - Narrow Target Market Overall Cost Leadership (Generic Business Strategy) intersection of competing on cost and targeting a broad market; experience curve & economies of scale; still need to differentiate some Experience Curve decline in unit cost of production as cumulative output increases (based on knowledge/expertise) Economies of Scale decline in unit cost of production as rate of output increases (based on spreading out fixed costs) Trade-off for Cost Leadership Advantages: high profits through volume; easier to survive price wars Disadvantages: perceptions of quality; relies on volume; less adaptable; can be too focused on cost Differentiation (Generic Business Strategy) intersection of competing on uniqueness and targeting a broad market; need to be unique in ways that are valued by your customers; innovation becomes really important Trade-off for Differentiation Advantages: can create brand loyalty; high profit margins Disadvantages: danger of knock-offs; sensitive to price wars (ex. What happens if you innovate in a way that customers don't value?) Focused Low Cost (Generic Business Strategy) intersection of competing on cost and targeting a narrow (or niche) market; compete based on service, values, or other niche characteristics/needs/demands in addition to cost (ex. two Subway mantras: "Eat Fresh" for health conscious customers & "5 Dollar Footlong" for competing on cost) Focused Differentiation (Generic Business Strategy) intersection of concentrating on uniqueness and targeting a narrow (or niche) market; compete based on service, values, or other niche characteristics/needs/demands in addition to uniqueness (ex. Ben & Jerry's: target charitable individuals, competing on interesting flavor combinations like Cherry Garcia, Chocolate Macadamia) Trade-offs of Focused Strategies - Advantages: higher profit margins; develop expertise - Disadvantages: limited demand; niche may change or disappear; other companies may enter your niche in even more focused ways You are a consultant for Toyota and have determined