WPC 470 Moore ASU Final Exam Questions And Answers

WPC 470 Moore ASU Final Exam Questions And Answers The goal-directed actions managers take in their quest for competitive advantage when competing in a single product market - ANSWER- Business-level strategy Business level strategy that successfully combines differentiation and cost-leadership activities using value innovation to reconcile the inherent tradeoffs - ANSWER- Blue ocean strategy Generic business strategy that seeks to create the same or similar value for customers at a lower cost - ANSWER- Cost-leadership strategy Generic business strategy that seeks to create higher value for customers than the value that competitors create, while containing costs - ANSWER- Differentiation strategy Increases in cost per unit when output increases - ANSWER- Diseconomies of scale Decreases in cost per unit as output increases - ANSWER- Economies of scale Savings that come from producing two or more outputs at less cost than producing each output individually, despite using the same resources and technology - ANSWER- Economies of scope Output range needed to bring down the cost per unit as much as possible, allowing a firm to stake out the lowest-cost position that is achievable through economies of scale - ANSWER- Minimum efficient scale (MES) Choices between a cost or value position. Such choices are necessary because higher value creation tends to generate higher cost - ANSWER- Strategic trade-offs A new product which known components, based on existing technologies, are reconfigured In a novel way to attack new markets - ANSWER- Architectural innovation An innovation that leverages new technologies to attack existing markets from the bottom up - ANSWER- Disruptive innovation An innovation that squarely builds on an established knowledge base and steadily improves an existing product or service - ANSWER- Incremental innovation