Exam-2, MGMT-3013 UARK Questions and Correct Answers Latest 2025/2026

Exam-2, MGMT-3013 UARK Questions and Correct Answers Latest 2025/2026 Business-Level Strategy - Answer -goal-directed actions when competing in a single product market. Strategic Trade-Offs - Answer -cost or value position; higher value creation tends to generate higher cost. Differentiation Strategy - Answer -seeks to create higher value for customers than the value that competitors create. Cost-Leadership Strategy - Answer -seeks to create the same or similar value for customers at a lower cost. Scope of Competition - Answer -The size of market firm chooses to compete. Focused Cost-Leadership Strategy - Answer -cost-leadership strategy with narrow focus on a niche market. Focused Differentiation Strategy - Answer -differentiation strategy with narrow focus on a niche market. Economies of Scope - Answer -Savings from producing two (or more) outputs at less cost than producing each output individually, using same resources and technology.Economies of Scale - Answer -Decreases in cost per unit as output increases. Minimum Efficient Scale (MES) - Answer -Output range needed to lower cost per unit stake out the lowest-cost position through economies of scale. Diseconomies of Scale - Answer -Increases in cost per unit when output increases. Blue Ocean Strategy - Answer -successfully combines differentiation and cost-leadership activities Value Innovation - Answer -value for both the firm and the consumers; cornerstone of blue ocean strategy. Value Curve - Answer -Horizontal connection of value points helping determine courses of action. Strategy Canvas - Answer -Graphical depiction of a company's performance vs competition Corporate Strategy - Answer -senior management decisions and goal directed actions taken to gain and sustain competitive advantage in several industries and markets simultaneously. Transaction Cost Economics - Answer -theoretical framework to explain and predict boundaries of the firm, central to formulating a corporate strategy likely leading to competitive advantage. Transaction Costs - Answer -All internal and external costs associated with an economic exchange