Strategic Management Test 2 (Ch.
6,7,8,9) Exam Questions and Answers
100% Pass
business level strategy - ✔✔Goal-directed actions managers take To achieve
competitive advantage
In a **single product market**
business level strategy - ✔✔key question - "How will we compete to gain & sustain
competitive advantage?"
Business level strategy questions - ✔✔Who: which customer segments will we serve?
What: customer needs, wishes, and desires will we satisfy?
Why: do we want to satisfy them?
How: will we satisfy our customers' needs?
Brittie Donald, All Rights Reserved © 2025 1
,Economic value creation and
Profit margin - ✔✔Purpose of trade offs are to maximize the firm's:
differentiation - ✔✔Seeks to create higher value than competitors
Offers products or services with unique features
Keeps the firm's cost structure as low as possible
Charges higher prices
cost leadership - ✔✔Seeks to create similar value than competitors
Products or services delivered at lower cost
Charges lower prices
strategic trade-offs - ✔✔choices between a cost or value position
Brittie Donald, All Rights Reserved © 2025 2
, there's a tension between Value creation and Pressure to keep cost in check
scope of competition - ✔✔The size (narrow or broad) of the market in which a firm
chooses to compete
Focused Differentiation - ✔✔focused, narrow market
Ex: Mont Blanc or Tesla
or private planes
Focused Cost Leadership - ✔✔narrow, niche market
Ex: Allegiant, Spirit and Frontier airlines
Broad Differentiation - ✔✔broader market, differentiated
Ex: Delta, United, Emirates, Lufthansa
Broad Cost Leadership - ✔✔Broad, low-cost
Ex: Southwest airlines
Value - Cost > competitors - ✔✔Competitive advantage is achieved when
differentiation - ✔✔Unique features that increase value of goods and services
Consumers are willing to pay a higher price.
Brittie Donald, All Rights Reserved © 2025 3
6,7,8,9) Exam Questions and Answers
100% Pass
business level strategy - ✔✔Goal-directed actions managers take To achieve
competitive advantage
In a **single product market**
business level strategy - ✔✔key question - "How will we compete to gain & sustain
competitive advantage?"
Business level strategy questions - ✔✔Who: which customer segments will we serve?
What: customer needs, wishes, and desires will we satisfy?
Why: do we want to satisfy them?
How: will we satisfy our customers' needs?
Brittie Donald, All Rights Reserved © 2025 1
,Economic value creation and
Profit margin - ✔✔Purpose of trade offs are to maximize the firm's:
differentiation - ✔✔Seeks to create higher value than competitors
Offers products or services with unique features
Keeps the firm's cost structure as low as possible
Charges higher prices
cost leadership - ✔✔Seeks to create similar value than competitors
Products or services delivered at lower cost
Charges lower prices
strategic trade-offs - ✔✔choices between a cost or value position
Brittie Donald, All Rights Reserved © 2025 2
, there's a tension between Value creation and Pressure to keep cost in check
scope of competition - ✔✔The size (narrow or broad) of the market in which a firm
chooses to compete
Focused Differentiation - ✔✔focused, narrow market
Ex: Mont Blanc or Tesla
or private planes
Focused Cost Leadership - ✔✔narrow, niche market
Ex: Allegiant, Spirit and Frontier airlines
Broad Differentiation - ✔✔broader market, differentiated
Ex: Delta, United, Emirates, Lufthansa
Broad Cost Leadership - ✔✔Broad, low-cost
Ex: Southwest airlines
Value - Cost > competitors - ✔✔Competitive advantage is achieved when
differentiation - ✔✔Unique features that increase value of goods and services
Consumers are willing to pay a higher price.
Brittie Donald, All Rights Reserved © 2025 3
