©FYNDLAY 2025 ALL RIGHTS RESERVED
Strategic Management Chapters 6-10 Exam
Questions and Answers 100% Pass
Business-level strategy - ANS Details the actions managers take in their quest for competivie
advantage when competing in a single product market. "How should we compete?".
Who, what, why, how.
Strategic position - ANS Determined by business-level strategy, and is a firm's strategic
profile based on value creation and cost. Goal is to maximize gap between value and cost (V-C).
Strategic trade-offs - ANS Situations that require choosing between a cost or value positions,
necessary because higher value tends to require higher cost.
Differentiation strategy - ANS Generic business strategy that seeks to create higher value for
customers than the value that competitors create, by delivering products or services with
unique features while keeping the firm's cost structure the same or similar.
Can be focused if targeting more narrow market.
Cost-leadership strategy - ANS Generic business strategy that seeks to create the same or
similar value for customers by delivering products or services at a lower cost than competitors,
enabling the firm to offer lower prices to its customers.
Can be focused if targeting more narrow market.
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, ©FYNDLAY 2025 ALL RIGHTS RESERVED
Scope of competition - ANS The size -- narrow or broad -- of the market in which a firm
chooses to compete.
Mass customization - ANS Manufacture of a large variety of customized products or services
at a relatively low unit cost.
Economies of scale - ANS As output increases, cost per unit decreases.
Minimum efficient scale (MES) - ANS Output range needed to bring down the cost per unit as
much as possible, allowing a firm to stake out the lowest-cost position possible via economies
of scale.
Integration strategy - ANS Business-level strategy that successfully combines differentiation
and cost leadership activities.
Drivers are quality, economies of scope, innovation, and structure culture and routines.
Economies of scope - ANS Savings that come from producing two or more outputs at less
cost than producing each output individually, despite using the same resources and technology.
Ambidextrous organization - ANS An organization able to balance and harness different
activities in trade-off situations
Conglomerate - ANS An organization that combines two or more business units, often active
in different industries, under one overarching corporation.
Productivity frontier - ANS Relationship that captures the result of performing best practices
at any given time; the function is convex to capture the trade-off between value creation and
production cost.
©FYNDLAY 2
Strategic Management Chapters 6-10 Exam
Questions and Answers 100% Pass
Business-level strategy - ANS Details the actions managers take in their quest for competivie
advantage when competing in a single product market. "How should we compete?".
Who, what, why, how.
Strategic position - ANS Determined by business-level strategy, and is a firm's strategic
profile based on value creation and cost. Goal is to maximize gap between value and cost (V-C).
Strategic trade-offs - ANS Situations that require choosing between a cost or value positions,
necessary because higher value tends to require higher cost.
Differentiation strategy - ANS Generic business strategy that seeks to create higher value for
customers than the value that competitors create, by delivering products or services with
unique features while keeping the firm's cost structure the same or similar.
Can be focused if targeting more narrow market.
Cost-leadership strategy - ANS Generic business strategy that seeks to create the same or
similar value for customers by delivering products or services at a lower cost than competitors,
enabling the firm to offer lower prices to its customers.
Can be focused if targeting more narrow market.
©FYNDLAY 1
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
Scope of competition - ANS The size -- narrow or broad -- of the market in which a firm
chooses to compete.
Mass customization - ANS Manufacture of a large variety of customized products or services
at a relatively low unit cost.
Economies of scale - ANS As output increases, cost per unit decreases.
Minimum efficient scale (MES) - ANS Output range needed to bring down the cost per unit as
much as possible, allowing a firm to stake out the lowest-cost position possible via economies
of scale.
Integration strategy - ANS Business-level strategy that successfully combines differentiation
and cost leadership activities.
Drivers are quality, economies of scope, innovation, and structure culture and routines.
Economies of scope - ANS Savings that come from producing two or more outputs at less
cost than producing each output individually, despite using the same resources and technology.
Ambidextrous organization - ANS An organization able to balance and harness different
activities in trade-off situations
Conglomerate - ANS An organization that combines two or more business units, often active
in different industries, under one overarching corporation.
Productivity frontier - ANS Relationship that captures the result of performing best practices
at any given time; the function is convex to capture the trade-off between value creation and
production cost.
©FYNDLAY 2
