GBA 490 Ch. 5-8 Test Questions and Answers Solved Correctly Rated A+
Low-cost leaders - Answers have the lowest industry costs, are exceptionally good at finding ways to
drive costs out of their businesses but still provide acceptable product.
Cost driver - Answers a factor that has a strong influence on a company's costs.
Broad Differentiation Strategy - Answers to offer a unique product attributes that a wide range of buyers
find appealing.
Value/Uniqueness Driver - Answers a factor that can have a strong differentiating effect.
Best Cost Provider Strategies - Answers Hybrid of low cost provider and differentiation strategies that
aim at providing desirable attributes while beating rivals on price.
Strategic offenses - Answers called for when a company spots opportunities to gain profitable market
share at its rivals expense or when a company has no choice but to try to whittle away at a strong rival's
competitive advantage.
Blue-ocean Strategy - Answers offers growth in revenues and profits by discovering or inventing new
industry segments that create altogether new demand. It renders existing competitors irrelevant.
Scope of the firm - Answers refers to the range of activities that the firm performs internally, the
breadth of its product and service offerings, the extent of its geographic market presence, and its mix of
businesses.
Horizontal Scope - Answers the range of product and service segments that a firms serves within its focal
market.
Vertical Scope - Answers the extent to which a firms internal activities encompass the range of activities
that make up and industry's entire value chain system, from raw-material production to final sales and
service activities.
Vertically Integrated firm - Answers one that performs value chain activities along more than one stage
of an industry's value chain system.
Backward Integration - Answers involves entry into activities previously performed by suppliers or other
enterprises positioned along earlier stages of the industry value chain system.
Forward Integration - Answers entry into value chain system activities closer to the end user. (Building
relationships, selling memorabilia rather than just motorcycles.)
Outsourcing - Answers contracting out certain activities that are normally performed in-house to outside
vendors.
Political Risks - Answers stem from instability or weakness in national governments and hostility toward
foreign businesses.
Low-cost leaders - Answers have the lowest industry costs, are exceptionally good at finding ways to
drive costs out of their businesses but still provide acceptable product.
Cost driver - Answers a factor that has a strong influence on a company's costs.
Broad Differentiation Strategy - Answers to offer a unique product attributes that a wide range of buyers
find appealing.
Value/Uniqueness Driver - Answers a factor that can have a strong differentiating effect.
Best Cost Provider Strategies - Answers Hybrid of low cost provider and differentiation strategies that
aim at providing desirable attributes while beating rivals on price.
Strategic offenses - Answers called for when a company spots opportunities to gain profitable market
share at its rivals expense or when a company has no choice but to try to whittle away at a strong rival's
competitive advantage.
Blue-ocean Strategy - Answers offers growth in revenues and profits by discovering or inventing new
industry segments that create altogether new demand. It renders existing competitors irrelevant.
Scope of the firm - Answers refers to the range of activities that the firm performs internally, the
breadth of its product and service offerings, the extent of its geographic market presence, and its mix of
businesses.
Horizontal Scope - Answers the range of product and service segments that a firms serves within its focal
market.
Vertical Scope - Answers the extent to which a firms internal activities encompass the range of activities
that make up and industry's entire value chain system, from raw-material production to final sales and
service activities.
Vertically Integrated firm - Answers one that performs value chain activities along more than one stage
of an industry's value chain system.
Backward Integration - Answers involves entry into activities previously performed by suppliers or other
enterprises positioned along earlier stages of the industry value chain system.
Forward Integration - Answers entry into value chain system activities closer to the end user. (Building
relationships, selling memorabilia rather than just motorcycles.)
Outsourcing - Answers contracting out certain activities that are normally performed in-house to outside
vendors.
Political Risks - Answers stem from instability or weakness in national governments and hostility toward
foreign businesses.
