MANA 4322 EXAM 2 QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
Differentiation strategy and price elasticity - Answers Differentiation lowers price elasticity.
Customers become less price sensitive.
Dollar appreciation vs other currencies - Answers A stronger dollar makes exports more expensive
and imports cheaper.
What must a company do to manage the pressure to reduce costs? - Answers Cut costs across the
value chain. Standardize. Improve efficiency. Use scale and global sourcing.
Best international strategy by pressure levels - Answers Low local + low cost: International. High local
+ low cost: Multidomestic. Low local + high cost: Global. High local + high cost: Transnational.
Which firms benefit more from a global strategy than a multidomestic strategy? - Answers Firms with
standardized products, global customers, high cost pressure, and low need for local customization.
Global strategy blanks: offer ___ and locate activities in ___ - Answers Standardized products and
services. A few centralized or optimal locations.
Corporate-level strategy addresses two related issues - Answers What businesses to be in. How to
create value across the set of businesses.
Individual investors are dependent upon managers to ____ - Answers Maximize shareholder value
over time.
McKesson super warehouses with many product lines is what type of diversification? - Answers
Related diversification.
Benefits of a related diversification strategy - Answers Economies of scope. Shared activities. Skill
transfer. Synergy.
What is vertical integration? - Answers Expanding into upstream suppliers and or downstream
distribution and retail.
Most critical component of differentiation success - Answers Customers perceive added value and
will pay for it. The value premium must exceed the added cost.
Primary means by which a company can diversify - Answers Mergers and acquisitions.
Downsides or limitations of mergers and acquisitions - Answers Overpaying. Integration problems.
Culture clash. Debt risk. Distraction. Synergies not realized. Regulation issues.
Why would a company face difficulty when expanding internationally? - Answers Culture and
preference differences. Laws and regulation. Currency and political risk. Logistics complexity. Local
rivals. Liability of foreignness.
Why did Nokia lose its competitive advantage? - Answers It missed the shift to smartphone
ecosystems and software platforms. Rivals moved faster.
What corporate strategy is concentration? - Answers Staying focused in one business or closely
related area.
What corporate strategy is vertical integration? - Answers Owning more stages of the value chain.
Backward and or forward.
What corporate strategy is conglomerate diversification? - Answers Diversifying into unrelated
businesses with little strategic fit.
Object of a company's competitive strategy - Answers Achieve sustainable competitive advantage
and outperform rivals.
What does a company's competitive strategy deal with? - Answers How to compete in its market.
How to win customers and position against rivals.
Is a market share dominator strategy a generic competitive strategy? - Answers No.
Low-cost leader's basis for competitive advantage - Answers Lower operating costs than rivals.
How to activate a low-cost provider strategy - Answers Build a low-cost value chain. Simplify and
standardize. Improve process efficiency. Use scale. Reduce overhead.
How can a company differentiate its products from rivals? - Answers Add unique value customers
care about. Features, quality, service, design, brand, convenience, customization, technology.
Angles companies can pursue to differentiate - Answers Features and performance. Quality and
reliability. Service and support. Brand and image. Customization. Convenience. Innovation and
technology.
What do easy-to-copy differentiation features do or don't do? - Answers They may help short term.
They do not create lasting advantage.
Overall cost leadership advantage of Aldi - Answers Very low-cost model. Limited assortment. Private
label. No frills. Lean staffing. Efficient logistics.
Differentiation strategy and price elasticity - Answers Differentiation lowers price elasticity.
Customers become less price sensitive.
Dollar appreciation vs other currencies - Answers A stronger dollar makes exports more expensive
and imports cheaper.
What must a company do to manage the pressure to reduce costs? - Answers Cut costs across the
value chain. Standardize. Improve efficiency. Use scale and global sourcing.
Best international strategy by pressure levels - Answers Low local + low cost: International. High local
+ low cost: Multidomestic. Low local + high cost: Global. High local + high cost: Transnational.
Which firms benefit more from a global strategy than a multidomestic strategy? - Answers Firms with
standardized products, global customers, high cost pressure, and low need for local customization.
Global strategy blanks: offer ___ and locate activities in ___ - Answers Standardized products and
services. A few centralized or optimal locations.
Corporate-level strategy addresses two related issues - Answers What businesses to be in. How to
create value across the set of businesses.
Individual investors are dependent upon managers to ____ - Answers Maximize shareholder value
over time.
McKesson super warehouses with many product lines is what type of diversification? - Answers
Related diversification.
Benefits of a related diversification strategy - Answers Economies of scope. Shared activities. Skill
transfer. Synergy.
What is vertical integration? - Answers Expanding into upstream suppliers and or downstream
distribution and retail.
Most critical component of differentiation success - Answers Customers perceive added value and
will pay for it. The value premium must exceed the added cost.
Primary means by which a company can diversify - Answers Mergers and acquisitions.
Downsides or limitations of mergers and acquisitions - Answers Overpaying. Integration problems.
Culture clash. Debt risk. Distraction. Synergies not realized. Regulation issues.
Why would a company face difficulty when expanding internationally? - Answers Culture and
preference differences. Laws and regulation. Currency and political risk. Logistics complexity. Local
rivals. Liability of foreignness.
Why did Nokia lose its competitive advantage? - Answers It missed the shift to smartphone
ecosystems and software platforms. Rivals moved faster.
What corporate strategy is concentration? - Answers Staying focused in one business or closely
related area.
What corporate strategy is vertical integration? - Answers Owning more stages of the value chain.
Backward and or forward.
What corporate strategy is conglomerate diversification? - Answers Diversifying into unrelated
businesses with little strategic fit.
Object of a company's competitive strategy - Answers Achieve sustainable competitive advantage
and outperform rivals.
What does a company's competitive strategy deal with? - Answers How to compete in its market.
How to win customers and position against rivals.
Is a market share dominator strategy a generic competitive strategy? - Answers No.
Low-cost leader's basis for competitive advantage - Answers Lower operating costs than rivals.
How to activate a low-cost provider strategy - Answers Build a low-cost value chain. Simplify and
standardize. Improve process efficiency. Use scale. Reduce overhead.
How can a company differentiate its products from rivals? - Answers Add unique value customers
care about. Features, quality, service, design, brand, convenience, customization, technology.
Angles companies can pursue to differentiate - Answers Features and performance. Quality and
reliability. Service and support. Brand and image. Customization. Convenience. Innovation and
technology.
What do easy-to-copy differentiation features do or don't do? - Answers They may help short term.
They do not create lasting advantage.
Overall cost leadership advantage of Aldi - Answers Very low-cost model. Limited assortment. Private
label. No frills. Lean staffing. Efficient logistics.
