BSG EXAM 2
According to the lecture, in order for a low-cost provider strategy to work, a firm must
achieve ________on the basis of differentiation relative to the competitors.
a. Parity
b. Customers
c. Synthesis
d. Actions
e. None of the above - ANSA. Parity
2. When achieving a competitive advantage using low cost strategy, there are 2 major ways
to achieving a cost advantage, one of which is:
a. Focus less on efficiency
b. Develop a corporate parenting advantage
c. Develop unique strategic plans
d. Eliminate some cost-producing activities
e. All of the above - ANSd. Eliminate some cost-producing activities
3. Which of the following is NOT indicative of a market in which a broad differentiation
strategy works best?
a. Needs and use of products are diverse
b. Many ways to differentiate the products customers value
c. Rival firms follow a unique differentiation approach
d. Technological change is fast paced
e. All of the above are indicative of markets in which broad differentiation works - ANSc.
Rival firms follow a unique differentiation approach
4. When thinking about business strategy, an _________integrates characteristics of both
the low-cost and differentiation strategy.
a. Focused strategy
b. Combination strategy
c. Internal
d. Competitive endeavor
e. External analysis - ANSb. Combination strategy
5. According to Ghemawat, ________is a blueprint for delivering a valuable product or
service to customers in a way that increases a company's competitive advantage.
a. Internal positioning
b. A business model
c. External positions
d. Architectural drawing
e. None of the above - ANSb. A business mode
6. According to Ghemawat, _____is/not, the ability of the firm to increases willingness to pay
without increasing costs and achieve price premium.
, a. Low cost strategy
b. Vision
c. Customer choices
d. Resources
e. Differentiation - ANSe. Differentiation
7. When using a business model approach to refine a firm's business strategy, which of the
following is not a good use of value chain analysis mentioned in class.
a. Use of activities to analyze costs
b. Use of activities to determine willingness to pay
c. Use of activities to calculate willingness to pay
d. Use of activities to decrease willingness to pay
e. All are good uses of value chain analysis - ANSd. Use of activities to decrease willingness
to pay
8. When considering corporate strategies, ______occurs when businesses operating in
different industries possess competitively valuable cross business value chain and resource
consonance.
a. Related diversification
b. Strength of the company
c. Unrelated diversification
d. Industry attractiveness
e. Best cost strategies - ANSa. Related diversification
9. According to the lecture, leverage is an important component to successful related
diversification and is generally about creating _______.
a. Fulcrums
b. Customers
c. Products
d. Geography
e. Newness - ANSe. Newness
10.When considering corporate strategy and unrelated diversification, __________ refers to
the positive contributions that come from the corporate office.
a. Environmental monitors
b. Industry analysis
c. Corporate parent advantage
d. Competitive intelligence
e. Restructuring - ANSc. Corporate parent advantage
11.When engaging in corporate strategy, there are different methods to achieving
diversification. _____________refers to strategy relevant collaboration in which a new legal
entity is formed.
a. Acquisition
b. Joint Venture
c. Internal development
d. Corporate vending
e. None of the above - ANSb. Joint Venture
According to the lecture, in order for a low-cost provider strategy to work, a firm must
achieve ________on the basis of differentiation relative to the competitors.
a. Parity
b. Customers
c. Synthesis
d. Actions
e. None of the above - ANSA. Parity
2. When achieving a competitive advantage using low cost strategy, there are 2 major ways
to achieving a cost advantage, one of which is:
a. Focus less on efficiency
b. Develop a corporate parenting advantage
c. Develop unique strategic plans
d. Eliminate some cost-producing activities
e. All of the above - ANSd. Eliminate some cost-producing activities
3. Which of the following is NOT indicative of a market in which a broad differentiation
strategy works best?
a. Needs and use of products are diverse
b. Many ways to differentiate the products customers value
c. Rival firms follow a unique differentiation approach
d. Technological change is fast paced
e. All of the above are indicative of markets in which broad differentiation works - ANSc.
Rival firms follow a unique differentiation approach
4. When thinking about business strategy, an _________integrates characteristics of both
the low-cost and differentiation strategy.
a. Focused strategy
b. Combination strategy
c. Internal
d. Competitive endeavor
e. External analysis - ANSb. Combination strategy
5. According to Ghemawat, ________is a blueprint for delivering a valuable product or
service to customers in a way that increases a company's competitive advantage.
a. Internal positioning
b. A business model
c. External positions
d. Architectural drawing
e. None of the above - ANSb. A business mode
6. According to Ghemawat, _____is/not, the ability of the firm to increases willingness to pay
without increasing costs and achieve price premium.
, a. Low cost strategy
b. Vision
c. Customer choices
d. Resources
e. Differentiation - ANSe. Differentiation
7. When using a business model approach to refine a firm's business strategy, which of the
following is not a good use of value chain analysis mentioned in class.
a. Use of activities to analyze costs
b. Use of activities to determine willingness to pay
c. Use of activities to calculate willingness to pay
d. Use of activities to decrease willingness to pay
e. All are good uses of value chain analysis - ANSd. Use of activities to decrease willingness
to pay
8. When considering corporate strategies, ______occurs when businesses operating in
different industries possess competitively valuable cross business value chain and resource
consonance.
a. Related diversification
b. Strength of the company
c. Unrelated diversification
d. Industry attractiveness
e. Best cost strategies - ANSa. Related diversification
9. According to the lecture, leverage is an important component to successful related
diversification and is generally about creating _______.
a. Fulcrums
b. Customers
c. Products
d. Geography
e. Newness - ANSe. Newness
10.When considering corporate strategy and unrelated diversification, __________ refers to
the positive contributions that come from the corporate office.
a. Environmental monitors
b. Industry analysis
c. Corporate parent advantage
d. Competitive intelligence
e. Restructuring - ANSc. Corporate parent advantage
11.When engaging in corporate strategy, there are different methods to achieving
diversification. _____________refers to strategy relevant collaboration in which a new legal
entity is formed.
a. Acquisition
b. Joint Venture
c. Internal development
d. Corporate vending
e. None of the above - ANSb. Joint Venture
