GBA WRITTEN EXAM QUESTIONS AND
ANSWERS 2026/2027
The five generic competitive strategies are not characterized by a _____ strategy.
a) broad differentiation
b) low-cost provider
c) best cost
d) narrow differentiation
e) high-cost - ANSWER-e) high-cost
The generic types of competitive strategies include
a) market share growth provider, sales revenue leader strategy, and market share
retention strategy
b) offensive strategies, defensive strategies, and counter maneuvers strategies
c) low-cost provider, broad differentiation, best-cost provider, focused low-cost, and
focused differentiation strategies
d) low-cost/low-price strategies, high quality/high-price strategies, and medium
quality/medium price strategies - ANSWER-c) low-cost provider, broad differentiation,
best-cost provider, focused low-cost, and focused differentiation strategies
A low-cost leader's basis for competitive advantage is
a) lowest possible prices for comparable products
b) a low-cost/moderate price approach to gain the biggest market share
c) high buyer switching costs
d) meaningful lower overall costs than rivals on comparable products
e) higher unit sales than rivals - ANSWER-d) meaningful lower overall costs than rivals
on comparable products
In order to be successful with a low-cost leadership strategy, company managers have
to
a) eliminate wholesale and retail intermediaries and instead sell directly to users of their
product or service
b) perform value chain activities more cost-effectively than rivals and be proactive in
revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-
producing activities
c) outsource the majority of value chain activities to nations that have lower wage rates
and fewer regulations
d) develop and market products and services at that absolute lowest possible cost -
ANSWER-b) perform value chain activities more cost-effectively than rivals and be
, proactive in revamping the firm's overall value chain to eliminate or bypass
"nonessential" cost-producing activities
The major avenues for achieving a cost advantage over rivals include
a) performing value chain activities more cost-effectively than rivals or revamping the
firm's overall value chain to eliminate or bypass some cost-producing activities
b) having a management team that is highly skilled in cutting costs
c) being a first-mover in adopting the latest state-of-the-art technologies, especially
those relating to low-cost manufacture
d) outsourcing high-cost activities to cost-efficient vendors
e) paying lower wages and salaries than rivals - ANSWER-a) performing value chain
activities more cost-effectively than rivals or revamping the firm's overall value chain to
eliminate or bypass some cost-producing activities
Sometimes it makes sense for a company to go on the offensive to improve its market
position and business performance. The best offensives tend to incorporate the
following except:
a) focusing relentlessly on building a competitive advantage
b) applying resources where rivals are least able to defend themselves
c) using a strategic offensive to allow the company to leverage its weaknesses to
strengthen operating vulnerabilities
d) employing the elements of surprise as opposed to doing what rivals expect and are
prepared for
e) displaying a strong bias for swift, decisive, and overwhelming actions to overpower
rivals - ANSWER-c) using a strategic offensive to allow the company to leverage its
weaknesses to strengthen operating vulnerabilities
An offensive to yield good results can be short if
a) buyers respond immediately (to a dramatic cost-based price cut or imaginative ad
campaign)
b) competition creates an appealing new product
c) the technology needs debugging
d) new production capacity needs to be installed
e) consumer acceptance of an innovative product takes time - ANSWER-a) buyers
respond immediately (to a dramatic cost-based price cut or imaginative ad campaign)
A blue-ocean strategy
a) is an offensive strike employed by a market leader that is directed at pilfering
customers away from unsuspecting rivals to boost profitability
b) involves an unexpected (out-of-the-blue) preemptive strike to secure an
advantageous position in a fast-growing market segment
c) works best when a company is the industry's low cost leader
ANSWERS 2026/2027
The five generic competitive strategies are not characterized by a _____ strategy.
a) broad differentiation
b) low-cost provider
c) best cost
d) narrow differentiation
e) high-cost - ANSWER-e) high-cost
The generic types of competitive strategies include
a) market share growth provider, sales revenue leader strategy, and market share
retention strategy
b) offensive strategies, defensive strategies, and counter maneuvers strategies
c) low-cost provider, broad differentiation, best-cost provider, focused low-cost, and
focused differentiation strategies
d) low-cost/low-price strategies, high quality/high-price strategies, and medium
quality/medium price strategies - ANSWER-c) low-cost provider, broad differentiation,
best-cost provider, focused low-cost, and focused differentiation strategies
A low-cost leader's basis for competitive advantage is
a) lowest possible prices for comparable products
b) a low-cost/moderate price approach to gain the biggest market share
c) high buyer switching costs
d) meaningful lower overall costs than rivals on comparable products
e) higher unit sales than rivals - ANSWER-d) meaningful lower overall costs than rivals
on comparable products
In order to be successful with a low-cost leadership strategy, company managers have
to
a) eliminate wholesale and retail intermediaries and instead sell directly to users of their
product or service
b) perform value chain activities more cost-effectively than rivals and be proactive in
revamping the firm's overall value chain to eliminate or bypass "nonessential" cost-
producing activities
c) outsource the majority of value chain activities to nations that have lower wage rates
and fewer regulations
d) develop and market products and services at that absolute lowest possible cost -
ANSWER-b) perform value chain activities more cost-effectively than rivals and be
, proactive in revamping the firm's overall value chain to eliminate or bypass
"nonessential" cost-producing activities
The major avenues for achieving a cost advantage over rivals include
a) performing value chain activities more cost-effectively than rivals or revamping the
firm's overall value chain to eliminate or bypass some cost-producing activities
b) having a management team that is highly skilled in cutting costs
c) being a first-mover in adopting the latest state-of-the-art technologies, especially
those relating to low-cost manufacture
d) outsourcing high-cost activities to cost-efficient vendors
e) paying lower wages and salaries than rivals - ANSWER-a) performing value chain
activities more cost-effectively than rivals or revamping the firm's overall value chain to
eliminate or bypass some cost-producing activities
Sometimes it makes sense for a company to go on the offensive to improve its market
position and business performance. The best offensives tend to incorporate the
following except:
a) focusing relentlessly on building a competitive advantage
b) applying resources where rivals are least able to defend themselves
c) using a strategic offensive to allow the company to leverage its weaknesses to
strengthen operating vulnerabilities
d) employing the elements of surprise as opposed to doing what rivals expect and are
prepared for
e) displaying a strong bias for swift, decisive, and overwhelming actions to overpower
rivals - ANSWER-c) using a strategic offensive to allow the company to leverage its
weaknesses to strengthen operating vulnerabilities
An offensive to yield good results can be short if
a) buyers respond immediately (to a dramatic cost-based price cut or imaginative ad
campaign)
b) competition creates an appealing new product
c) the technology needs debugging
d) new production capacity needs to be installed
e) consumer acceptance of an innovative product takes time - ANSWER-a) buyers
respond immediately (to a dramatic cost-based price cut or imaginative ad campaign)
A blue-ocean strategy
a) is an offensive strike employed by a market leader that is directed at pilfering
customers away from unsuspecting rivals to boost profitability
b) involves an unexpected (out-of-the-blue) preemptive strike to secure an
advantageous position in a fast-growing market segment
c) works best when a company is the industry's low cost leader
