MNGT 4800 Zorn Test 2 questions with precise ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
detailed answers ||//\\||
business level strategy - correct answer✔✔action plan the firm develops to describe how it
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
will compete in its chosen industry or market segment
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
two dimensions of business level strategy? - correct answer✔✔competitive advantage (cost
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
vs uniqueness) and competitive scope (Broad or Narrow target)
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
5 business level strategies - correct answer✔✔Cost leadership
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Differentiation
Focused cost leadership ||//\\|| ||//\\||
Focused differentiation ||//\\||
Integrated cost leadership/differentiation ||//\\|| ||//\\||
Cost Leadership strategy? - correct answer✔✔price products lower than competitors, gain
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
market share ||//\\||
Which strategy commonly has economies of scale? - correct answer✔✔cost leadership
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Competitive risks of Cost Leadership Strategy - correct answer✔✔competitors could see at ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
lower price, concentrate too much on reducing costs may lose customers, powerful suppliers
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
entering the market ||//\\|| ||//\\||
Differentiation Strategy - correct answer✔✔firm produces goods that customers perceive as ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
unique, physical sources (product durability, ease of repair), psychological differentiation
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
, (perception of quality, courtesy of sales people), customer who wants to buy a good that is ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
different than industry's average customer, must increase loyalty!! ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Differentiation allows firm to charge a... - correct answer✔✔premium ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
competitive risks of differentiation - correct answer✔✔customers may decide the price is too ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
high
||//\\||
source of differentiation may cease to create value for targeted customers (fads)
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
cost of the differentiation isn't acceptable
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
run the risk of being somewhat effectively counterfeited allowing customers to question why
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
they're paying a high price ||//\\|| ||//\\|| ||//\\|| ||//\\||
what are focused strategies? - correct answer✔✔action plan the firm develops to produce
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
goods or services that serve the needs of a specific segment market
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
focused cost leadership strategy - correct answer✔✔produce goods for a narrow market
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
segment at the lowest cost ||//\\|| ||//\\|| ||//\\|| ||//\\||
competitive risks for Focused Cost Leadership - correct answer✔✔competition may learn ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
how to "outfocus" the firm
||//\\|| ||//\\|| ||//\\|| ||//\\||
company serving broad market may decide to target the same market ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
needs of the narrow target customer may change/become similar to broad market
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Focused Differentiation Strategy - correct answer✔✔produce goods or services that a narrow
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
group of customers perceives as unique in important ways
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Competitive risk of focused differentiation - correct answer✔✔competition may learn how to ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
"outfocus" the firm
||//\\|| ||//\\|| ||//\\||
company serving broad market may decide to target the same market ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
detailed answers ||//\\||
business level strategy - correct answer✔✔action plan the firm develops to describe how it
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
will compete in its chosen industry or market segment
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
two dimensions of business level strategy? - correct answer✔✔competitive advantage (cost
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
vs uniqueness) and competitive scope (Broad or Narrow target)
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
5 business level strategies - correct answer✔✔Cost leadership
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Differentiation
Focused cost leadership ||//\\|| ||//\\||
Focused differentiation ||//\\||
Integrated cost leadership/differentiation ||//\\|| ||//\\||
Cost Leadership strategy? - correct answer✔✔price products lower than competitors, gain
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
market share ||//\\||
Which strategy commonly has economies of scale? - correct answer✔✔cost leadership
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Competitive risks of Cost Leadership Strategy - correct answer✔✔competitors could see at ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
lower price, concentrate too much on reducing costs may lose customers, powerful suppliers
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
entering the market ||//\\|| ||//\\||
Differentiation Strategy - correct answer✔✔firm produces goods that customers perceive as ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
unique, physical sources (product durability, ease of repair), psychological differentiation
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
, (perception of quality, courtesy of sales people), customer who wants to buy a good that is ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
different than industry's average customer, must increase loyalty!! ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Differentiation allows firm to charge a... - correct answer✔✔premium ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
competitive risks of differentiation - correct answer✔✔customers may decide the price is too ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
high
||//\\||
source of differentiation may cease to create value for targeted customers (fads)
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
cost of the differentiation isn't acceptable
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
run the risk of being somewhat effectively counterfeited allowing customers to question why
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
they're paying a high price ||//\\|| ||//\\|| ||//\\|| ||//\\||
what are focused strategies? - correct answer✔✔action plan the firm develops to produce
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
goods or services that serve the needs of a specific segment market
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
focused cost leadership strategy - correct answer✔✔produce goods for a narrow market
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
segment at the lowest cost ||//\\|| ||//\\|| ||//\\|| ||//\\||
competitive risks for Focused Cost Leadership - correct answer✔✔competition may learn ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
how to "outfocus" the firm
||//\\|| ||//\\|| ||//\\|| ||//\\||
company serving broad market may decide to target the same market ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
needs of the narrow target customer may change/become similar to broad market
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Focused Differentiation Strategy - correct answer✔✔produce goods or services that a narrow
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
group of customers perceives as unique in important ways
||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
Competitive risk of focused differentiation - correct answer✔✔competition may learn how to ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
"outfocus" the firm
||//\\|| ||//\\|| ||//\\||
company serving broad market may decide to target the same market ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\|| ||//\\||
