MNGT 4800 exam 2 with accurate detailed answers ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Define Business Level strategy - correct answer✔✔action plan the firm develops to describe
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HOW it will compete in its chosen industry or market segment
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how does business level strategy differ from corporate level? - correct answer✔✔corporate
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answers the WHAT and business answers HOW ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
If you have LOW cost leadership, what do you use? - correct answer✔✔use standardized
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items
Firms using a cost leadership strategy usually have a LARGE ________________ ______
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_________ - correct answer✔✔economies of scale ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
What is a pro of cost leadership strategy? - correct answer✔✔Effective entry barrier
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Cons of cost leadership strategy (4) - correct answer✔✔1. does not apply to elite brands
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2. low customer loyalty
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3. low cost of R&D and production
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4. Threat of powerful suppliers
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What are the features of differentiation? - correct answer✔✔1. emphasis on innovation &
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promotion
2. uniqueness of products
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3. brand loyalty
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4. price premium
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, What are the risks of differential? - correct answer✔✔1. price may be looked at as too high
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2. Imitation and counterfeit products
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3. Ceases to create value
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what are the 2 types of uniqueness for differentiation? - correct answer✔✔1. physical
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2. psychological
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In order to use each strategy successfully, what functions in value chain do firms need to
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focus on? - correct answer✔✔Focus on production, then on marketing, R & D
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In a centralized structure you have:
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A. more power to lower level employees
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B. increased efficiency
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C. more formalized rules
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D. Both B and C - correct answer✔✔D
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In a decentralized structure you don't have:
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A. less rules
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B. employees can be more creative
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C. operational menus
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D. cost strategy - correct answer✔✔D. cost strategy
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Differentiation strategy requires a functional structure - correct answer✔✔1. Focusing on ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
R&D and marketing ||//\\|| ||//\\|| ||//\\||
2. Authority is decentralized
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3. Low specialization jobs
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4. Few rules and processes in place
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Define Business Level strategy - correct answer✔✔action plan the firm develops to describe
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HOW it will compete in its chosen industry or market segment
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how does business level strategy differ from corporate level? - correct answer✔✔corporate
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answers the WHAT and business answers HOW ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
If you have LOW cost leadership, what do you use? - correct answer✔✔use standardized
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items
Firms using a cost leadership strategy usually have a LARGE ________________ ______
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
_________ - correct answer✔✔economies of scale ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
What is a pro of cost leadership strategy? - correct answer✔✔Effective entry barrier
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Cons of cost leadership strategy (4) - correct answer✔✔1. does not apply to elite brands
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2. low customer loyalty
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3. low cost of R&D and production
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4. Threat of powerful suppliers
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What are the features of differentiation? - correct answer✔✔1. emphasis on innovation &
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
promotion
2. uniqueness of products
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3. brand loyalty
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4. price premium
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, What are the risks of differential? - correct answer✔✔1. price may be looked at as too high
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2. Imitation and counterfeit products
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3. Ceases to create value
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what are the 2 types of uniqueness for differentiation? - correct answer✔✔1. physical
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2. psychological
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In order to use each strategy successfully, what functions in value chain do firms need to
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focus on? - correct answer✔✔Focus on production, then on marketing, R & D
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In a centralized structure you have:
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A. more power to lower level employees
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B. increased efficiency
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C. more formalized rules
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D. Both B and C - correct answer✔✔D
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In a decentralized structure you don't have:
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A. less rules
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B. employees can be more creative
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C. operational menus
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D. cost strategy - correct answer✔✔D. cost strategy
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Differentiation strategy requires a functional structure - correct answer✔✔1. Focusing on ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
R&D and marketing ||//\\|| ||//\\|| ||//\\||
2. Authority is decentralized
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3. Low specialization jobs
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4. Few rules and processes in place
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