SEVI 3013 UARK Exam 2 Summer
UPDATED Exam Questions and CORRECT
Answers
Outside the flight experience itself, airlines are generating revenue by charging fees for credit
cards, frequent-flyer programs, and access to airport lounges. This serves to - CORRECT
ANSWER - expand the profit pool.
Barnes and Noble lost its market share in book retailing to Amazon. It tried to regain market
share by offering a similar electronic reader, the Nook, to the Amazon Kindle series. This
demonstrates that Barnes and Noble lacked - CORRECT ANSWER - a sustainable
competitive advantage.
A low-cost position permits buyers to exert power to drive ________ prices only to the level of
the next most efficient producer. - CORRECT ANSWER - down
A firm can achieve differentiation through all the following means except - CORRECT
ANSWER - offering lower prices to frequent customers.
In the ________ stage of the industry life cycle, the emphasis on product design is very high, the
intensity of competition is low, and the market growth rate is low. - CORRECT ANSWER -
introduction
The primary aim of strategic management at the business level is - CORRECT ANSWER -
achieving competitive advantage.
One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.
Experience effects are achieved by - CORRECT ANSWER - repeating a process until a task
becomes easier.
, Proctor and Gamble announced that it would sell off or close down up to 100 of its brands. This
is an example of which turnaround strategy used by successful companies? - CORRECT
ANSWER - selective product and market pruning
Research has consistently shown that firms that achieve both cost leadership and differentiation
advantages tend to perform - CORRECT ANSWER - higher than firms that achieve either a
cost or a differentiation advantage.
A risk for a firm that tries to attain both cost and differentiation advantages is that it can be stuck
in the middle. An example of this is supermarkets because their ________ structure is ________
than discount retailers, and customers do not value their products and services as being high-end
such as those offered by Whole Foods. - CORRECT ANSWER - cost; higher
Diversification initiatives include all the following except - CORRECT ANSWER -
shareholder development.
According to Michael Porter, there is a tremendous allure to ________. It is the big play, the
dramatic gesture. With one stroke of the pen, you can add billions to size, get a front-page story,
and create excitement in markets. - CORRECT ANSWER - mergers and acquisitions
An acquisition that results in ________ commonly indicates that expectations were not met. -
CORRECT ANSWER - divestiture
Ford and VW signed a memorandum of understanding to work together to develop autonomous
vehicles. Which of the following best explains the potential advantage for them? - CORRECT
ANSWER - developing and diffusing new technologies
________ diversification is when a firm enters a different business that has little horizontal
interaction with other businesses of a firm. - CORRECT ANSWER - Unrelated
3M leverages its competencies in adhesives technologies to many industries, including
automotive, construction, and telecommunications. This is an example of creating value by using
UPDATED Exam Questions and CORRECT
Answers
Outside the flight experience itself, airlines are generating revenue by charging fees for credit
cards, frequent-flyer programs, and access to airport lounges. This serves to - CORRECT
ANSWER - expand the profit pool.
Barnes and Noble lost its market share in book retailing to Amazon. It tried to regain market
share by offering a similar electronic reader, the Nook, to the Amazon Kindle series. This
demonstrates that Barnes and Noble lacked - CORRECT ANSWER - a sustainable
competitive advantage.
A low-cost position permits buyers to exert power to drive ________ prices only to the level of
the next most efficient producer. - CORRECT ANSWER - down
A firm can achieve differentiation through all the following means except - CORRECT
ANSWER - offering lower prices to frequent customers.
In the ________ stage of the industry life cycle, the emphasis on product design is very high, the
intensity of competition is low, and the market growth rate is low. - CORRECT ANSWER -
introduction
The primary aim of strategic management at the business level is - CORRECT ANSWER -
achieving competitive advantage.
One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.
Experience effects are achieved by - CORRECT ANSWER - repeating a process until a task
becomes easier.
, Proctor and Gamble announced that it would sell off or close down up to 100 of its brands. This
is an example of which turnaround strategy used by successful companies? - CORRECT
ANSWER - selective product and market pruning
Research has consistently shown that firms that achieve both cost leadership and differentiation
advantages tend to perform - CORRECT ANSWER - higher than firms that achieve either a
cost or a differentiation advantage.
A risk for a firm that tries to attain both cost and differentiation advantages is that it can be stuck
in the middle. An example of this is supermarkets because their ________ structure is ________
than discount retailers, and customers do not value their products and services as being high-end
such as those offered by Whole Foods. - CORRECT ANSWER - cost; higher
Diversification initiatives include all the following except - CORRECT ANSWER -
shareholder development.
According to Michael Porter, there is a tremendous allure to ________. It is the big play, the
dramatic gesture. With one stroke of the pen, you can add billions to size, get a front-page story,
and create excitement in markets. - CORRECT ANSWER - mergers and acquisitions
An acquisition that results in ________ commonly indicates that expectations were not met. -
CORRECT ANSWER - divestiture
Ford and VW signed a memorandum of understanding to work together to develop autonomous
vehicles. Which of the following best explains the potential advantage for them? - CORRECT
ANSWER - developing and diffusing new technologies
________ diversification is when a firm enters a different business that has little horizontal
interaction with other businesses of a firm. - CORRECT ANSWER - Unrelated
3M leverages its competencies in adhesives technologies to many industries, including
automotive, construction, and telecommunications. This is an example of creating value by using
