BUSI 410 Final Exam || All Solutions are Accurate.
Strategic leadership correct answers creating competitive advantage through effective
management of the strategy making process
Functional level strategies correct answers directed at improving the effectiveness of operations
within a company
Business level strategies correct answers encompass the business's overall competitive theme
Corporate level strategies correct answers should be chosen to promote the success of its
business-level strategies
allows a firm to achieve a sustainable competitive advantage, leading to higher profitability.
Industry correct answers group of companies offering products or services that are close
substitutes for each other
Complementors correct answers companies that sell products that add value to the other products
Economies of scale correct answers reductions in unit cost attributed to a larger output
Differentiation correct answers distinguishing oneself from rivals by offering something that they
find hard to match. Achieved by superior reliability, functions, and features. Allows a company
to charge a premium price and grow overall demand and capture market share from rivals.
Efficiency frontier correct answers shows all the positions a company can adopt with regard to
differentiation and low cost. Has a convex shape because of diminishing returns.
, Focus differentiation correct answers requires offering unique features that fulfill the demands of
a narrow market. Some firms use a focused differentiation strategy to concentrate their efforts on
a particular sales channel, such as selling over the Internet only.
Focus low cost correct answers targeting a certain segment or niche and trying to be the low cost
player in that niche.
Harvest strategy correct answers when a company reduces to a minimum the assets it employs in
a business
to reduce cost structure and extract minimum profits from investment
Divestment strategy correct answers when a company decides to exit an industry by selling off
its business assets to another company
Acquisition correct answers when a company uses its capital resources to buy another company
Merger correct answers agreement between two companies to pool their resources and operations
and join together to better compete in a business industry
Localization strategy correct answers focuses on increasing profitability by customizing goods
when cost pressures are not strong and customer preferences differentiate across nations
Transnational strategy correct answers achieves low costs and differentiates the product offering
across geographic markets that fosters a flow of skills between global subsidiaries
International strategy correct answers companies establish manufacturing and marketing
functions in each major country they do business in. The product is a universal need and the
company is not faced with cost pressures.
Strategic leadership correct answers creating competitive advantage through effective
management of the strategy making process
Functional level strategies correct answers directed at improving the effectiveness of operations
within a company
Business level strategies correct answers encompass the business's overall competitive theme
Corporate level strategies correct answers should be chosen to promote the success of its
business-level strategies
allows a firm to achieve a sustainable competitive advantage, leading to higher profitability.
Industry correct answers group of companies offering products or services that are close
substitutes for each other
Complementors correct answers companies that sell products that add value to the other products
Economies of scale correct answers reductions in unit cost attributed to a larger output
Differentiation correct answers distinguishing oneself from rivals by offering something that they
find hard to match. Achieved by superior reliability, functions, and features. Allows a company
to charge a premium price and grow overall demand and capture market share from rivals.
Efficiency frontier correct answers shows all the positions a company can adopt with regard to
differentiation and low cost. Has a convex shape because of diminishing returns.
, Focus differentiation correct answers requires offering unique features that fulfill the demands of
a narrow market. Some firms use a focused differentiation strategy to concentrate their efforts on
a particular sales channel, such as selling over the Internet only.
Focus low cost correct answers targeting a certain segment or niche and trying to be the low cost
player in that niche.
Harvest strategy correct answers when a company reduces to a minimum the assets it employs in
a business
to reduce cost structure and extract minimum profits from investment
Divestment strategy correct answers when a company decides to exit an industry by selling off
its business assets to another company
Acquisition correct answers when a company uses its capital resources to buy another company
Merger correct answers agreement between two companies to pool their resources and operations
and join together to better compete in a business industry
Localization strategy correct answers focuses on increasing profitability by customizing goods
when cost pressures are not strong and customer preferences differentiate across nations
Transnational strategy correct answers achieves low costs and differentiates the product offering
across geographic markets that fosters a flow of skills between global subsidiaries
International strategy correct answers companies establish manufacturing and marketing
functions in each major country they do business in. The product is a universal need and the
company is not faced with cost pressures.
