MAN 4720 FINAL EXAM UCF QUESTIONS AND ANSWERS 100% CORRECT

MAN 4720 FINAL EXAM UCF
QUESTIONS AND ANSWERS 100%
CORRECT
A generic business strategy is ? - ANSWER-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 - ANSWER-a. Breadth of
competitive scope/Source of competitive advantage

What are the four main generic strategies? - ANSWER-Cost Leadership (overall
Differentiation
Focused low cost
Focused differentiation

Generic Business Strategies: Two Dimensions - ANSWER-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) - ANSWER-intersection of
competing on cost and targeting a broad market; experience curve & economies of
scale; still need to differentiate some

Experience Curve - ANSWER-decline in unit cost of production as cumulative output
increases (based on knowledge/expertise)

Economies of Scale - ANSWER-decline in unit cost of production as rate of output
increases (based on spreading out fixed costs)

Trade-off for Cost Leadership - ANSWER-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) - ANSWER-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 - ANSWER-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) - ANSWER-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) - ANSWER-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 - ANSWER-- 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 that in the car manufacturing
market, their products are offered at a much lower price than competitors, but are also
substantially differentiated from competitors. The most accurate description of Toyota's
generic strategy is:

A. Differentiation
B. Overall Cost Leadership
C. Best Cost Strategy
D. Focused Differentiation - ANSWER-C. Best Cost Strategy

"Stuck in the Middle"; Differentiation; Cost - ANSWER-Companies will choose a generic
business strategy to avoid becoming ______ These firms are the ones that don't try to
compete on either _______ or ______ Not really on the grid.


Motivation (A-M-C framework) - ANSWER-Market Commonality
- Do you target the same market as the competitor?
Resource Similarity
- Do you use similar resources as the competitor?
Actor's Reputation
- Is the actor a major player in the industry?

, Capability (A-M-C framework) - ANSWER-Do you have the resources to respond
effectively?
Time, Money, Human capital, Etc.)

Action/Reaction Options - ANSWER-- Speed matters
- Content matters
- Lower prices
- Product development/innovation
Attack on same dimension by create knockoff/leap frog them on same or Attack on
different dimension- develop new feature in different area
- Establish a fighting brand
- Mutual) Forbearance- do nothing
- Co-opetition
- Blue Ocean Strategy
- Bricolage
- Joint Venture/Strategic Alliance

Co-opetition - ANSWER-compete with them in some areas, but cooperate in others

Blue Ocean Strategy - ANSWER-rather than competing with rivals, target a different
market; reduces market commonality

Bricolage - ANSWER-combine the resources readily available to you in a unique way to
create a new business/product that is very different from others

Levels of Strategy - ANSWER-- Corporate
- Business
- Product

Best Cost Strategy - ANSWER-uses more than one generic strategy; compete on price
and uniqueness; might consider different strategies for different brands (ex. Lexus vs
Toyota)

You are a consultant for Embraer and have determined that in the airplane
manufacturing market, their products are significantly cheaper than the competitors, but
they're still a little differentiated from the competition. In addition, they seem to target the
entire airplane-purchasing market. The most accurate description of Embraer's generic
strategy (or lack thereof) is:
A. Stuck in the Middle
B. Differentiation
C. Overall Cost Leadership
D. Focused Low Cost
E. Focused Differentiation - ANSWER-C. Overall Cost Leadership