BUSA 6600 Strategic Management
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Whatever strategic approach is adopted by a company to deliver value, it nearly always requires -
CORRECT ANSWER - performing chain activities differently than rivals and building
competitively valuable resources and capabilities that rivals cannot readily match
The biggest and most important differences among the competitive strategies of different
companies boil down to - CORRECT ANSWER - whether a company's market target is
broad or narrow and whether the company is pursuing a competitive advantage linked to low
cost or differentiation
A boutique hotel chain provides upscale rooms and superior customer service at value prices.
What strategy is the hotelier using to gain competitive advantage? - CORRECT
ANSWER - a best-cost provider strategy
Once a company has decided to employ a particular generic competitive strategy, then it must
make the following additional strategic choices EXCEPT whether to - CORRECT
ANSWER - pay special attention to buyer segments that a rival is already serving
Which of the following is NOT a strategic choice that a company must make to complement and
supplement its choice of one of the five generic competitive strategies? - CORRECT
ANSWER - whether to employ a market share leadership strategy
Strategic offensive should, as a generic rules, be based on - CORRECT ANSWER -
exploiting a company's strongest competitive assets-its most valuable resources and capabilities
The primary reasons that companies opt to expand into foreign markets are to - CORRECT
ANSWER - gain access to new customers, achieve lower costs, enhance the company's
competitiveness, capitalize on core competencies, and spread business risk across a wider market
base
, Which of the following is NOT a possible reason why Uber opted to expand its on-demand
transportation services into foreign markets? - CORRECT ANSWER - to build the profit
sanctuary necessary to wage guerrilla offensives against global challengers endeavoring to
invade its home market
Exxon Mobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set up
a processing unit in Moscow. Which of the following is most likely the reason for Exxon Mobil
to opt for this strategic alliance? - CORRECT ANSWER - to gain access to low-cost
inputs of production
A company's competitive strategy is unlikely to succeed unless it - CORRECT
ANSWER - is predicated on leveraging a competitively valuable collection of resources
and capabilities that match the strategy.
The marketing emphasis of a company pursuing a focused differentiation strategy usually is to -
CORRECT ANSWER - communicate how product offerings do the best job of meeting
niche buyers' expectations.
A differentiation strategy works best in which of the following market circumstances? -
CORRECT ANSWER - when there are many ways to differentiate the product or service
that have value to buyers
Best-cost provider strategies work best when - CORRECT ANSWER - product
differentiation is the norm and there is an attractively large number of value-conscious buyers.
What are the two ways a company can translate its low-cost advantage over rivals into attractive
profit performance? - CORRECT ANSWER - either using its low-cost edge to underprice
competitors and attract price-sensitive buyers in large enough numbers to increase total profits or
refraining from price cutting and using the low-cost advantage to earn a bigger profit margin on
each unit sold
The two pivotal factors that distinguish one competitive strategy from another boil down to -
CORRECT ANSWER - (1) whether the company's market target is broad or narrow, and
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Whatever strategic approach is adopted by a company to deliver value, it nearly always requires -
CORRECT ANSWER - performing chain activities differently than rivals and building
competitively valuable resources and capabilities that rivals cannot readily match
The biggest and most important differences among the competitive strategies of different
companies boil down to - CORRECT ANSWER - whether a company's market target is
broad or narrow and whether the company is pursuing a competitive advantage linked to low
cost or differentiation
A boutique hotel chain provides upscale rooms and superior customer service at value prices.
What strategy is the hotelier using to gain competitive advantage? - CORRECT
ANSWER - a best-cost provider strategy
Once a company has decided to employ a particular generic competitive strategy, then it must
make the following additional strategic choices EXCEPT whether to - CORRECT
ANSWER - pay special attention to buyer segments that a rival is already serving
Which of the following is NOT a strategic choice that a company must make to complement and
supplement its choice of one of the five generic competitive strategies? - CORRECT
ANSWER - whether to employ a market share leadership strategy
Strategic offensive should, as a generic rules, be based on - CORRECT ANSWER -
exploiting a company's strongest competitive assets-its most valuable resources and capabilities
The primary reasons that companies opt to expand into foreign markets are to - CORRECT
ANSWER - gain access to new customers, achieve lower costs, enhance the company's
competitiveness, capitalize on core competencies, and spread business risk across a wider market
base
, Which of the following is NOT a possible reason why Uber opted to expand its on-demand
transportation services into foreign markets? - CORRECT ANSWER - to build the profit
sanctuary necessary to wage guerrilla offensives against global challengers endeavoring to
invade its home market
Exxon Mobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set up
a processing unit in Moscow. Which of the following is most likely the reason for Exxon Mobil
to opt for this strategic alliance? - CORRECT ANSWER - to gain access to low-cost
inputs of production
A company's competitive strategy is unlikely to succeed unless it - CORRECT
ANSWER - is predicated on leveraging a competitively valuable collection of resources
and capabilities that match the strategy.
The marketing emphasis of a company pursuing a focused differentiation strategy usually is to -
CORRECT ANSWER - communicate how product offerings do the best job of meeting
niche buyers' expectations.
A differentiation strategy works best in which of the following market circumstances? -
CORRECT ANSWER - when there are many ways to differentiate the product or service
that have value to buyers
Best-cost provider strategies work best when - CORRECT ANSWER - product
differentiation is the norm and there is an attractively large number of value-conscious buyers.
What are the two ways a company can translate its low-cost advantage over rivals into attractive
profit performance? - CORRECT ANSWER - either using its low-cost edge to underprice
competitors and attract price-sensitive buyers in large enough numbers to increase total profits or
refraining from price cutting and using the low-cost advantage to earn a bigger profit margin on
each unit sold
The two pivotal factors that distinguish one competitive strategy from another boil down to -
CORRECT ANSWER - (1) whether the company's market target is broad or narrow, and
