MAN 4720 EXAM 2 QUESTIONS AND
ANSWERS (GRADED A+)
Business-level strategies detail commitments and actions taken to provide value to
customers and gain competitive advantage by exploiting core competencies in: -
ANSWER-specific product markets
A firms core strategy is its ____ strategy. - ANSWER-business
When selecting a business level strategy, the firm must determine all of the following
EXCEPT: - ANSWER-why should these customers; needs be satisfied?
The three dimensions of a firms relationships with customers include all the following
EXCEPT: - ANSWER-exclusiveness
Which of the following is TRUE? - ANSWER-Customer loyalty has a positive
relationship with firm profitability
The ________dimension of relationships with customers is particularly important for
social
networking sites such as Facebook and Twitter. - ANSWER-reach
Amazon has built capabilities around Internet technology and e-commerce to facilitate
information exchanges with its customers in a cost effective manner. This represents
which of the
three service dimension? - ANSWER-Richness
Viewing the world through the customers eyes and constantly seeking ways to create
more
value for the company enhances: - ANSWER-affiliation with the customer.
Before the firm decides what products to offer and what benefits and features they will
have, the firm must decide all the following questions EXCEPT: - ANSWER-when the
customer's needs should be satisfied.
In the animal food products business, food-product needs of owners of companion
animals
pets (e.g., dogs and cats) differ from the needs for food and health-related products of
those
owning production animals (e.g., livestock). Which of the following aspects of managing
customer relationships does this choice refer to? - ANSWER-Who: Determining the
Customers to Serve
,Starbucks determined that all of the following customer needs were important EXCEPT:
- ANSWER-low price.
Hyundai allows customers to return their cars if they lose their job within 12 months of
purchase. Which of the following aspects of managing customer relationships is
Hyundai
engaged in? - ANSWER-What: Determining Which Customer Needs to Satisfy
An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota,
because his spouse's company transferred her to St. Paul. The decorator is distressed
because the customers in his target market have, in his words, "banal and bourgeois
taste" What is the decorator's problem? - ANSWER-The decorator does not understand
that customer needs are neither right nor wrong,
good nor bad.
In order to meet and exceed customers expectations, firms must: - ANSWER-
continuously improve, innovate, and upgrade their core competencies.
Business-level strategies are concerned specifically with: - ANSWER-creating
differences between the firms position and its competitors.
An entrepreneur is investigating starting a company that provides tax advice to small
companies. In order to position his company differently from the existing competitors,
the
entrepreneur must: - ANSWER-provide tax advice either in a different manner or
provide a different kind of tax
service than competitors.
Which of the following are central to implementing value-creating strategies and thereby
satisfying customers needs? - ANSWER-Core competencies
The analysis of the activity map of a successful company such as Southwest Airlines
emphasizes how: - ANSWER-it is hard for rivals to match a configuration of integrated
activities than to imitate a
single activity.
By examining the ____ of Southwest Airlines, one can identify the strategic themes
around
which it has developed its business strategy. These themes include limited passenger
service, high aircraft utilization, and highly productive ground and gate crews. -
ANSWER-activity map
If Southwest Airlines employees lost their high enthusiasm and commitment to the
company: - ANSWER-Southwest would have lost one of its competitive advantages,
and its performance
would be threatened.
, Strategic fit among many activities (in an activity map) is fundamental to: - ANSWER-
sustainability of a firms competitive advantage.
All of the following are considered generic business-level strategies EXCEPT: -
ANSWER-product diversification.
A company using a narrow target market in its business strategy is: - ANSWER-limiting
the group of customer segments served.
As the television industry has changed in the last few decades from just three major
networks to a multiplicity of networks, one of the major aspects of business strategy for
the newer
networks is ____ than the traditional networks. - ANSWER-narrower target market
The effectiveness of any of the generic business-level strategies is contingent upon: -
ANSWER-the match between the opportunities and threats in its external market and
the
strengths of its internal environment.
A cost leadership strategy provides goods or services with features that are: -
ANSWER-acceptable.
A cost leadership strategy targets the industry's ____ customers. - ANSWER-most
typical
Durable Ceramics, Inc., provides inexpensive ceramic tile to builders of institutional
buildings such as schools, prisons, and public administration buildings. It has always
competed
on a cost leadership basis. Most of its products are purchased by a few commercial
construction firms, so it is fairly dependent on these construction firms for selling its
product. Durable Ceramics next most-efficient competitor, Cost-Less Ceramics, Inc.,
earns average returns, whereas Durable earns above-average returns. The commercial
construction firms are putting pressure on Durable to reduce its prices. If Durable
reduces its prices below those of Cost-Less prices, it is likely that: - ANSWER-Cost-
Less will go out of business, and Durable will gain higher power over its
customers.
Research suggests that having a competitive advantage in ____ creates more value in
the
cost leadership strategy than it does in the differentiation strategy. - ANSWER-logistics
A river barge company can offer cheaper, although slower, per pound transportation of
products to companies when compared with transportation by air, truck, or rail. The river
barge company should first target customers whose companies use: - ANSWER-the
cost leadership strategy.
ANSWERS (GRADED A+)
Business-level strategies detail commitments and actions taken to provide value to
customers and gain competitive advantage by exploiting core competencies in: -
ANSWER-specific product markets
A firms core strategy is its ____ strategy. - ANSWER-business
When selecting a business level strategy, the firm must determine all of the following
EXCEPT: - ANSWER-why should these customers; needs be satisfied?
The three dimensions of a firms relationships with customers include all the following
EXCEPT: - ANSWER-exclusiveness
Which of the following is TRUE? - ANSWER-Customer loyalty has a positive
relationship with firm profitability
The ________dimension of relationships with customers is particularly important for
social
networking sites such as Facebook and Twitter. - ANSWER-reach
Amazon has built capabilities around Internet technology and e-commerce to facilitate
information exchanges with its customers in a cost effective manner. This represents
which of the
three service dimension? - ANSWER-Richness
Viewing the world through the customers eyes and constantly seeking ways to create
more
value for the company enhances: - ANSWER-affiliation with the customer.
Before the firm decides what products to offer and what benefits and features they will
have, the firm must decide all the following questions EXCEPT: - ANSWER-when the
customer's needs should be satisfied.
In the animal food products business, food-product needs of owners of companion
animals
pets (e.g., dogs and cats) differ from the needs for food and health-related products of
those
owning production animals (e.g., livestock). Which of the following aspects of managing
customer relationships does this choice refer to? - ANSWER-Who: Determining the
Customers to Serve
,Starbucks determined that all of the following customer needs were important EXCEPT:
- ANSWER-low price.
Hyundai allows customers to return their cars if they lose their job within 12 months of
purchase. Which of the following aspects of managing customer relationships is
Hyundai
engaged in? - ANSWER-What: Determining Which Customer Needs to Satisfy
An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota,
because his spouse's company transferred her to St. Paul. The decorator is distressed
because the customers in his target market have, in his words, "banal and bourgeois
taste" What is the decorator's problem? - ANSWER-The decorator does not understand
that customer needs are neither right nor wrong,
good nor bad.
In order to meet and exceed customers expectations, firms must: - ANSWER-
continuously improve, innovate, and upgrade their core competencies.
Business-level strategies are concerned specifically with: - ANSWER-creating
differences between the firms position and its competitors.
An entrepreneur is investigating starting a company that provides tax advice to small
companies. In order to position his company differently from the existing competitors,
the
entrepreneur must: - ANSWER-provide tax advice either in a different manner or
provide a different kind of tax
service than competitors.
Which of the following are central to implementing value-creating strategies and thereby
satisfying customers needs? - ANSWER-Core competencies
The analysis of the activity map of a successful company such as Southwest Airlines
emphasizes how: - ANSWER-it is hard for rivals to match a configuration of integrated
activities than to imitate a
single activity.
By examining the ____ of Southwest Airlines, one can identify the strategic themes
around
which it has developed its business strategy. These themes include limited passenger
service, high aircraft utilization, and highly productive ground and gate crews. -
ANSWER-activity map
If Southwest Airlines employees lost their high enthusiasm and commitment to the
company: - ANSWER-Southwest would have lost one of its competitive advantages,
and its performance
would be threatened.
, Strategic fit among many activities (in an activity map) is fundamental to: - ANSWER-
sustainability of a firms competitive advantage.
All of the following are considered generic business-level strategies EXCEPT: -
ANSWER-product diversification.
A company using a narrow target market in its business strategy is: - ANSWER-limiting
the group of customer segments served.
As the television industry has changed in the last few decades from just three major
networks to a multiplicity of networks, one of the major aspects of business strategy for
the newer
networks is ____ than the traditional networks. - ANSWER-narrower target market
The effectiveness of any of the generic business-level strategies is contingent upon: -
ANSWER-the match between the opportunities and threats in its external market and
the
strengths of its internal environment.
A cost leadership strategy provides goods or services with features that are: -
ANSWER-acceptable.
A cost leadership strategy targets the industry's ____ customers. - ANSWER-most
typical
Durable Ceramics, Inc., provides inexpensive ceramic tile to builders of institutional
buildings such as schools, prisons, and public administration buildings. It has always
competed
on a cost leadership basis. Most of its products are purchased by a few commercial
construction firms, so it is fairly dependent on these construction firms for selling its
product. Durable Ceramics next most-efficient competitor, Cost-Less Ceramics, Inc.,
earns average returns, whereas Durable earns above-average returns. The commercial
construction firms are putting pressure on Durable to reduce its prices. If Durable
reduces its prices below those of Cost-Less prices, it is likely that: - ANSWER-Cost-
Less will go out of business, and Durable will gain higher power over its
customers.
Research suggests that having a competitive advantage in ____ creates more value in
the
cost leadership strategy than it does in the differentiation strategy. - ANSWER-logistics
A river barge company can offer cheaper, although slower, per pound transportation of
products to companies when compared with transportation by air, truck, or rail. The river
barge company should first target customers whose companies use: - ANSWER-the
cost leadership strategy.
