WPC 480 - Chapter 6 ACTUAL Questions
and 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.
Who - CORRECT ANSWER - Which customer segments will we serve?
What - CORRECT ANSWER - What customer needs, wishes, and desired will we satisfy?
Why - CORRECT ANSWER - Why do we want to satisfy them?
How - CORRECT ANSWER - How will we satisfy our customers' needs?
Industry firm effects - CORRECT ANSWER - To formulate an effective business strategy,
managers need to keep in mind that competitive advantage is determined jointly by ______ and
______ ______.
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.
Differentiation strategy - CORRECT ANSWER - Generic business strategy that seeks to
create higher value for customers than the value that competitors create.
Cost leadership strategy - CORRECT ANSWER - Generic business strategy that seeks to
create the same or similar value for customer at a lower cost.
Scope of competition - CORRECT ANSWER - The size- narrow or broad - of the market
in which a firm chooses to compete.
and 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.
Who - CORRECT ANSWER - Which customer segments will we serve?
What - CORRECT ANSWER - What customer needs, wishes, and desired will we satisfy?
Why - CORRECT ANSWER - Why do we want to satisfy them?
How - CORRECT ANSWER - How will we satisfy our customers' needs?
Industry firm effects - CORRECT ANSWER - To formulate an effective business strategy,
managers need to keep in mind that competitive advantage is determined jointly by ______ and
______ ______.
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.
Differentiation strategy - CORRECT ANSWER - Generic business strategy that seeks to
create higher value for customers than the value that competitors create.
Cost leadership strategy - CORRECT ANSWER - Generic business strategy that seeks to
create the same or similar value for customer at a lower cost.
Scope of competition - CORRECT ANSWER - The size- narrow or broad - of the market
in which a firm chooses to compete.
