GLOBUS 201 Final Exam
Actual Questions & Answers| Latest Update- Guaranteed Pass
,1. What is generally meant by a firm's 'competitive advantage'?
A. Having the largest number of employees in an industry
B. A firm's ability to consistently outperform rivals on a basis that
customers value, such as lower costs or superior differentiation
C. Being the first company ever founded in an industry
D. Having the highest total revenue regardless of profitability
Answer: B. A firm's ability to consistently outperform rivals on a basis
that customers value, such as lower costs or superior differentiation
Rationale: Competitive advantage refers to a firm's capacity to deliver
superior value to customers or achieve lower costs than rivals in a way that is
sustainable over time.
2. Which of the following best describes a 'low-cost provider' strategy?
A. Charging the highest price the market will bear
B. Achieving a meaningfully lower overall cost structure than rivals while
still offering acceptable value, enabling competitive pricing and/or higher
margins
C. Focusing exclusively on luxury features regardless of cost
D. Ignoring cost control in favor of maximum product features
Answer: B. Achieving a meaningfully lower overall cost structure than
rivals while still offering acceptable value, enabling competitive pricing
and/or higher margins
Rationale: A low-cost provider strategy centers on driving down costs across
the value chain to gain a pricing or margin advantage over competitors.
3. A 'broad differentiation' strategy is best described as:
A. Competing solely on price
B. Offering unique product attributes (such as quality, features, or service)
that customers value and are willing to pay for, appealing to a wide market
C. Focusing narrowly on a single small market niche
D. Copying the exact product design of the market leader
,Answer: B. Offering unique product attributes (such as quality,
features, or service) that customers value and are willing to pay for,
appealing to a wide market
Rationale: Differentiation strategies aim to create meaningfully distinct
products/services that broad customer segments perceive as worth a
premium.
4. A 'best-cost provider' strategy generally combines:
A. The lowest possible price with the lowest possible quality
B. Good-to-excellent quality/features with relatively low costs, giving
customers more value for the money than rivals
C. Extremely high price with minimal features
D. No coherent combination of cost and differentiation
Answer: B. Good-to-excellent quality/features with relatively low costs,
giving customers more value for the money than rivals
Rationale: Best-cost provider strategies aim to deliver superior value by
blending strong quality/features with tightly managed costs, appealing to
value-conscious customers.
5. A 'focused' (or niche) strategy is characterized by:
A. Targeting the entire mass market with a generic product
B. Concentrating on serving a narrow market segment particularly well,
based on either lower cost or differentiation within that niche
C. Ignoring customer needs entirely
D. Selling only through a single sales channel regardless of segment
Answer: B. Concentrating on serving a narrow market segment
particularly well, based on either lower cost or differentiation within that
niche
Rationale: Focused strategies target a specific buyer segment, geographic
area, or product-line niche, tailoring the approach to that narrower market
rather than the broad market.
6. In global strategic management, a 'multidomestic strategy' generally
involves:
, A. Using an identical strategy in every country with no local adaptation
B. Customizing the company's strategic approach to fit the specific
conditions and preferences of each national/local market
C. Selling only in the company's home country
D. Avoiding international expansion altogether
Answer: B. Customizing the company's strategic approach to fit the
specific conditions and preferences of each national/local market
Rationale: A multidomestic strategy tailors strategy country-by-country to
match differing buyer preferences, competitive conditions, and regulations
across markets.
7. A 'global strategy,' as opposed to a multidomestic strategy, generally
involves:
A. A highly customized approach unique to every single country
B. A largely standardized approach across country markets, leveraging
efficiencies from scale and shared systems, with limited local
customization
C. No international sales at all
D. Randomized strategic decisions across regions
Answer: B. A largely standardized approach across country markets,
leveraging efficiencies from scale and shared systems, with limited
local customization
Rationale: A global strategy uses much the same competitive approach in all
markets, capturing efficiency gains from standardization rather than deep
local customization.
8. Why might a multinational enterprise choose a 'transnational'
strategy that blends global efficiency with local responsiveness?
A. Because ignoring local market differences always maximizes profit
B. Because some products/markets benefit from economies of scale and
coordination while others require adaptation to local tastes, regulations, or
conditions
C. Because transnational strategies are required by international law
D. Because it eliminates the need for market research
Actual Questions & Answers| Latest Update- Guaranteed Pass
,1. What is generally meant by a firm's 'competitive advantage'?
A. Having the largest number of employees in an industry
B. A firm's ability to consistently outperform rivals on a basis that
customers value, such as lower costs or superior differentiation
C. Being the first company ever founded in an industry
D. Having the highest total revenue regardless of profitability
Answer: B. A firm's ability to consistently outperform rivals on a basis
that customers value, such as lower costs or superior differentiation
Rationale: Competitive advantage refers to a firm's capacity to deliver
superior value to customers or achieve lower costs than rivals in a way that is
sustainable over time.
2. Which of the following best describes a 'low-cost provider' strategy?
A. Charging the highest price the market will bear
B. Achieving a meaningfully lower overall cost structure than rivals while
still offering acceptable value, enabling competitive pricing and/or higher
margins
C. Focusing exclusively on luxury features regardless of cost
D. Ignoring cost control in favor of maximum product features
Answer: B. Achieving a meaningfully lower overall cost structure than
rivals while still offering acceptable value, enabling competitive pricing
and/or higher margins
Rationale: A low-cost provider strategy centers on driving down costs across
the value chain to gain a pricing or margin advantage over competitors.
3. A 'broad differentiation' strategy is best described as:
A. Competing solely on price
B. Offering unique product attributes (such as quality, features, or service)
that customers value and are willing to pay for, appealing to a wide market
C. Focusing narrowly on a single small market niche
D. Copying the exact product design of the market leader
,Answer: B. Offering unique product attributes (such as quality,
features, or service) that customers value and are willing to pay for,
appealing to a wide market
Rationale: Differentiation strategies aim to create meaningfully distinct
products/services that broad customer segments perceive as worth a
premium.
4. A 'best-cost provider' strategy generally combines:
A. The lowest possible price with the lowest possible quality
B. Good-to-excellent quality/features with relatively low costs, giving
customers more value for the money than rivals
C. Extremely high price with minimal features
D. No coherent combination of cost and differentiation
Answer: B. Good-to-excellent quality/features with relatively low costs,
giving customers more value for the money than rivals
Rationale: Best-cost provider strategies aim to deliver superior value by
blending strong quality/features with tightly managed costs, appealing to
value-conscious customers.
5. A 'focused' (or niche) strategy is characterized by:
A. Targeting the entire mass market with a generic product
B. Concentrating on serving a narrow market segment particularly well,
based on either lower cost or differentiation within that niche
C. Ignoring customer needs entirely
D. Selling only through a single sales channel regardless of segment
Answer: B. Concentrating on serving a narrow market segment
particularly well, based on either lower cost or differentiation within that
niche
Rationale: Focused strategies target a specific buyer segment, geographic
area, or product-line niche, tailoring the approach to that narrower market
rather than the broad market.
6. In global strategic management, a 'multidomestic strategy' generally
involves:
, A. Using an identical strategy in every country with no local adaptation
B. Customizing the company's strategic approach to fit the specific
conditions and preferences of each national/local market
C. Selling only in the company's home country
D. Avoiding international expansion altogether
Answer: B. Customizing the company's strategic approach to fit the
specific conditions and preferences of each national/local market
Rationale: A multidomestic strategy tailors strategy country-by-country to
match differing buyer preferences, competitive conditions, and regulations
across markets.
7. A 'global strategy,' as opposed to a multidomestic strategy, generally
involves:
A. A highly customized approach unique to every single country
B. A largely standardized approach across country markets, leveraging
efficiencies from scale and shared systems, with limited local
customization
C. No international sales at all
D. Randomized strategic decisions across regions
Answer: B. A largely standardized approach across country markets,
leveraging efficiencies from scale and shared systems, with limited
local customization
Rationale: A global strategy uses much the same competitive approach in all
markets, capturing efficiency gains from standardization rather than deep
local customization.
8. Why might a multinational enterprise choose a 'transnational'
strategy that blends global efficiency with local responsiveness?
A. Because ignoring local market differences always maximizes profit
B. Because some products/markets benefit from economies of scale and
coordination while others require adaptation to local tastes, regulations, or
conditions
C. Because transnational strategies are required by international law
D. Because it eliminates the need for market research
