Harrison TB5-6e - test bank
Business Strategy (University
of Lagos)
, Chapter 5: Business-Level Strategies
Chapter 5
Business-Level Strategies
TRUE/FALSE QUESTIONS
1. A business-level strategy consists of the competitive approach of a single line-of-
business instead of the entire corporation.
Answer: T
2. Competitive tactics are concerned with how the firm intends to position itself to
create value for its customers.
Answer: F
3. In general, firms create competitive advantage by offering a basic product at a
premium price and/or a preferred product at a low price.
Answer: F
4. Only one firm at a time can pursue a particular business-level strategy.
Answer: F
5. Economies of scale can contribute to reduced costs per unit.
Answer: T
6. In differentiation strategies, the emphasis is on creating value through uniqueness.
Answer: T
7. A best cost strategy combines the elements of low-cost leadership and differentiation.
Answer: T
8. The industry life cycle portrays how sales volume for a class of products changes
over its lifetime.
Answer: T
9. A competitive shakeout usually occurs at the beginning of the growth stage of the
product life cycle.
Answer: F
10. At the maturity stage of the life cycle, revenue growth accelerates rapidly.
Answer: F
11. Exporting, licensing, and franchising are international expansion tactics.
Business Strategy (University
of Lagos)
, Chapter 5: Business-Level Strategies
Chapter 5
Business-Level Strategies
TRUE/FALSE QUESTIONS
1. A business-level strategy consists of the competitive approach of a single line-of-
business instead of the entire corporation.
Answer: T
2. Competitive tactics are concerned with how the firm intends to position itself to
create value for its customers.
Answer: F
3. In general, firms create competitive advantage by offering a basic product at a
premium price and/or a preferred product at a low price.
Answer: F
4. Only one firm at a time can pursue a particular business-level strategy.
Answer: F
5. Economies of scale can contribute to reduced costs per unit.
Answer: T
6. In differentiation strategies, the emphasis is on creating value through uniqueness.
Answer: T
7. A best cost strategy combines the elements of low-cost leadership and differentiation.
Answer: T
8. The industry life cycle portrays how sales volume for a class of products changes
over its lifetime.
Answer: T
9. A competitive shakeout usually occurs at the beginning of the growth stage of the
product life cycle.
Answer: F
10. At the maturity stage of the life cycle, revenue growth accelerates rapidly.
Answer: F
11. Exporting, licensing, and franchising are international expansion tactics.
