WPC 470 Moore ASU Final Exam Questions
With Correct Answers
Business-level |strategy |- |CORRECT |ANSWER✔✔-The |goal-directed |actions |managers |take |in |
their |quest |for |competitive |advantage |when |competing |in |a |single |product |market
Blue |ocean |strategy |- |CORRECT |ANSWER✔✔-Business |level |strategy |that |successfully |
combines |differentiation |and |cost-leadership |activities |using |value |innovation |to |reconcile |the |
inherent |tradeoffs
Cost-leadership |strategy |- |CORRECT |ANSWER✔✔-Generic |business |strategy |that |seeks |to |
create |the |same |or |similar |value |for |customers |at |a |lower |cost
Differentiation |strategy |- |CORRECT |ANSWER✔✔-Generic |business |strategy |that |seeks |to |create
|higher |value |for |customers |than |the |value |that |competitors |create, |while |containing |costs
Diseconomies |of |scale |- |CORRECT |ANSWER✔✔-Increases |in |cost |per |unit |when |output |
increases
Economies |of |scale |- |CORRECT |ANSWER✔✔-Decreases |in |cost |per |unit |as |output |increases
Economies |of |scope |- |CORRECT |ANSWER✔✔-Savings |that |come |from |producing |two |or |more |
outputs |at |less |cost |than |producing |each |output |individually, |despite |using |the |same |resources
|and |technology
Minimum |efficient |scale |(MES) |- |CORRECT |ANSWER✔✔-Output |range |needed |to |bring |down |
the |cost |per |unit |as |much |as |possible, |allowing |a |firm |to |stake |out |the |lowest-cost |position |
that |is |achievable |through |economies |of |scale
, Strategic |trade-offs |- |CORRECT |ANSWER✔✔-Choices |between |a |cost |or |value |position. |Such |
choices |are |necessary |because |higher |value |creation |tends |to |generate |higher |cost
Architectural |innovation |- |CORRECT |ANSWER✔✔-A |new |product |which |known |components, |
based |on |existing |technologies, |are |reconfigured |In |a |novel |way |to |attack |new |markets
Disruptive |innovation |- |CORRECT |ANSWER✔✔-An |innovation |that |leverages |new |technologies |
to |attack |existing |markets |from |the |bottom |up
Incremental |innovation |- |CORRECT |ANSWER✔✔-An |innovation |that |squarely |builds |on |an |
established |knowledge |base |and |steadily |improves |an |existing |product |or |service
Process |innovation |- |CORRECT |ANSWER✔✔-New |ways |to |produce |existing |products |or |deliver |
existing |services
Value |innovation |- |CORRECT |ANSWER✔✔-The |simultaneous |pursuit |of |differentiation |and |low |
cost |in |a |way |that |creates |a |leap |in |value |for |both |the |firm |and |the |consumers; |considered |a |
cornerstone |of |blue |ocean |strategy
Crossing-the-chasm |framework |- |CORRECT |ANSWER✔✔-Conceptual |model |that |shows |how |
each |stage |of |the |industry |life |cycle |is |dominated |by |a |different |customer |group
Entrepreneurship |- |CORRECT |ANSWER✔✔-The |process |by |which |people |undertake |economic |
risk |to |innovate- |to |create |new |products, |processes, |and |sometimes |new |organizations
First-mover |advantages |- |CORRECT |ANSWER✔✔-Competitive |benefits |that |accrue |to |the |
successful |innovator
With Correct Answers
Business-level |strategy |- |CORRECT |ANSWER✔✔-The |goal-directed |actions |managers |take |in |
their |quest |for |competitive |advantage |when |competing |in |a |single |product |market
Blue |ocean |strategy |- |CORRECT |ANSWER✔✔-Business |level |strategy |that |successfully |
combines |differentiation |and |cost-leadership |activities |using |value |innovation |to |reconcile |the |
inherent |tradeoffs
Cost-leadership |strategy |- |CORRECT |ANSWER✔✔-Generic |business |strategy |that |seeks |to |
create |the |same |or |similar |value |for |customers |at |a |lower |cost
Differentiation |strategy |- |CORRECT |ANSWER✔✔-Generic |business |strategy |that |seeks |to |create
|higher |value |for |customers |than |the |value |that |competitors |create, |while |containing |costs
Diseconomies |of |scale |- |CORRECT |ANSWER✔✔-Increases |in |cost |per |unit |when |output |
increases
Economies |of |scale |- |CORRECT |ANSWER✔✔-Decreases |in |cost |per |unit |as |output |increases
Economies |of |scope |- |CORRECT |ANSWER✔✔-Savings |that |come |from |producing |two |or |more |
outputs |at |less |cost |than |producing |each |output |individually, |despite |using |the |same |resources
|and |technology
Minimum |efficient |scale |(MES) |- |CORRECT |ANSWER✔✔-Output |range |needed |to |bring |down |
the |cost |per |unit |as |much |as |possible, |allowing |a |firm |to |stake |out |the |lowest-cost |position |
that |is |achievable |through |economies |of |scale
, Strategic |trade-offs |- |CORRECT |ANSWER✔✔-Choices |between |a |cost |or |value |position. |Such |
choices |are |necessary |because |higher |value |creation |tends |to |generate |higher |cost
Architectural |innovation |- |CORRECT |ANSWER✔✔-A |new |product |which |known |components, |
based |on |existing |technologies, |are |reconfigured |In |a |novel |way |to |attack |new |markets
Disruptive |innovation |- |CORRECT |ANSWER✔✔-An |innovation |that |leverages |new |technologies |
to |attack |existing |markets |from |the |bottom |up
Incremental |innovation |- |CORRECT |ANSWER✔✔-An |innovation |that |squarely |builds |on |an |
established |knowledge |base |and |steadily |improves |an |existing |product |or |service
Process |innovation |- |CORRECT |ANSWER✔✔-New |ways |to |produce |existing |products |or |deliver |
existing |services
Value |innovation |- |CORRECT |ANSWER✔✔-The |simultaneous |pursuit |of |differentiation |and |low |
cost |in |a |way |that |creates |a |leap |in |value |for |both |the |firm |and |the |consumers; |considered |a |
cornerstone |of |blue |ocean |strategy
Crossing-the-chasm |framework |- |CORRECT |ANSWER✔✔-Conceptual |model |that |shows |how |
each |stage |of |the |industry |life |cycle |is |dominated |by |a |different |customer |group
Entrepreneurship |- |CORRECT |ANSWER✔✔-The |process |by |which |people |undertake |economic |
risk |to |innovate- |to |create |new |products, |processes, |and |sometimes |new |organizations
First-mover |advantages |- |CORRECT |ANSWER✔✔-Competitive |benefits |that |accrue |to |the |
successful |innovator
