Business Strategy Midterm (3) PASSED Exam Questions and CORRECT Answers According to the value -price -cost framework, deploying a differentiation strategy involves costs that might well exceed those of the average competitor, but with a successful differentiation strategy, that disadvantage is more than made up for by - a rise in the perceived value of the differentiated good, giving the differentiator a clear competitive advantage over the average rival. Under Armour, a multinational sports apparel company plans entry into a new geographical location, Vietnam, considered an emerging market, with its established and best -selling product line: women's running shorts. How should Under Armour not craft a strat egy to enhance future profits in Vietnam? - create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs The competitive advantage of a best -cost provider like Trader Joe's is - its capability to incorporate upscale or attractive attributes into its product offerings at lower costs than rivals. Consider the following five companies and their situations.• Company A is an established online fantasy sports gaming company that has been accused of game -rigging, bribes and kickbacks.• Company B, a ride share company, has delayed its planned initial pub lic offering due to reports of having an inhospitable workplace characterized by sexual harassment and discrimination.• Company C, a pharmaceutical manufacturer, charges higher prices for life -saving drugs in some countries than it charges in others.• Comp any D, a manufacturer and marketer of high -end consumer electronics, has a strict Code of Conduct that requires its suppliers to comply with several standards regarding safe working conditions, fair treatment of workers, and environmentally safe manufactur ing.• Company E, a pizza delivery business, is a being boycotted by customers and losing sponsored tie -ins with professional sports due to racist comments by its - Company D The best example of forward vertical integration is - Harley -Davidson and Ducati's own -branded stores that sell motorcycles and related memorabilia. An emergent strategy is best exemplified by a(n) - microbrewer that invests in building community water wells during a drought. An approach that is UNLIKELY to help a company's low -cost provider strategy succeed is - evolving the capabilities to simultaneously deliver lower cost and higher -quality/differentiated features. For John Sidanta, CEO and founder of Primaplast, a manufacturer of biodegradable plastic drinking straws made from recycled material, crafting and executing a strategy is a top -priority managerial task because it - is Primaplast management's prescription f or doing business, its roadmap to competitive advantage, a game plan for pleasing customers, and its formula for improving performance, especially in light of impending community and some food service outlets' bans on conventional plastic drinking straws. An example of a company that does not use blue -ocean market strategy is - Walmart's logistics and distribution in the retail industry. Choose the best example of a women's fashion retailer that uses cost drivers effectively to manage its value chain activities. - Bowdon Designs uses just -in-time inventories and produces made -to-order products as and when customer demand rises. The stronger the collective impact of competitive pressures associated with the five competitive forces, - the stronger are the industry's driving forces. Success with a best -cost provider strategy designed to outcompete high -end differentiators requires - achieving significantly lower costs in providing the upscale features. A superior indicator of how sound W.L. Gore's strategy is and whether or not the strategy signals strong execution is - achieving its stated financial and strategic objectives via improvements in its internal processes such as defect rate, order fulfillmen t, delivery times, days of inventory, and employee productivity. As general manager of a local restaurant chain, you have been asked to develop defensive moves to protect your company's market position and restrict any challenger's options for initiating a competitive attack. You would present all but ONE of the followi ng strategic options to your executive team. - Challenge struggling runner -up restaurants that are on the verge of going under.