WPC 470 MOORE ASU FINAL EXAM NEWEST 2024 EXAM ACTUAL EXAM COMPLETE 120 QUESTIONS AND
CORRECT DETAILED ANSWERS
Business-level strategy - (answer) The goal-directed actions managers take in their quest for
competitive advantage when competing in a single product market
Blue ocean strategy - (answer) Business level strategy that successfully combines differentiation and
cost-leadership activities using value innovation to reconcile the inherent tradeoffs
Cost-leadership strategy - (answer) Generic business strategy that seeks to create the same or similar
value for customers at a lower cost
Differentiation strategy - (answer) Generic business strategy that seeks to create higher value for
customers than the value that competitors create, while containing costs
Diseconomies of scale - (answer) Increases in cost per unit when output increases
Economies of scale - (answer) Decreases in cost per unit as output increases
Economies of scope - (answer) Savings that come from producing two or more outputs at less cost than
producing each output individually, despite using the same resources and technology
Minimum efficient scale (MES) - (answer) Output range needed to bring down the cost per unit as
much as possible, allowing a firm to stake out the lowest-cost position that is achievable through
economies of scale
Strategic trade-offs - (answer) Choices between a cost or value position. Such choices are necessary
because higher value creation tends to generate higher cost
Architectural innovation - (answer) A new product which known components, based on existing
technologies, are reconfigured In a novel way to attack new markets
Disruptive innovation - (answer) An innovation that leverages new technologies to attack existing
markets from the bottom up
, WPC 470 MOORE ASU FINAL EXAM NEWEST 2024 EXAM ACTUAL EXAM COMPLETE 120 QUESTIONS AND
CORRECT DETAILED ANSWERS
Incremental innovation - (answer) An innovation that squarely builds on an established knowledge
base and steadily improves an existing product or service
Process innovation - (answer) New ways to produce existing products or deliver existing services
Value innovation - (answer) The simultaneous pursuit of differentiation and low cost in a way that
creates a leap in value for both the firm and the consumers; considered a cornerstone of blue ocean
strategy
Crossing-the-chasm framework - (answer) Conceptual model that shows how each stage of the
industry life cycle is dominated by a different customer group
Entrepreneurship - (answer) The process by which people undertake economic risk to innovate- to
create new products, processes, and sometimes new organizations
First-mover advantages - (answer) Competitive benefits that accrue to the successful innovator
Industry life cycle - (answer) The five different stages; introduction, growth, shakeout, maturity, and
decline, that occur in the evolution of an industry over time
Network effects - (answer) The positive effect (externality) that one user of a product or service has on
the value of that product for other users
Patent - (answer) A form of intellectual property that gives the inventor exclusive rights to benefit from
commercializing a technology for a specified time period in exchange for public disclosure of the
underlying idea
Platform business - (answer) An enterprise that creates value by matching external producers and
consumers in a way that creates value for all participants, and that depends on the infrastructure or
platform that the enterprise manages
CORRECT DETAILED ANSWERS
Business-level strategy - (answer) The goal-directed actions managers take in their quest for
competitive advantage when competing in a single product market
Blue ocean strategy - (answer) Business level strategy that successfully combines differentiation and
cost-leadership activities using value innovation to reconcile the inherent tradeoffs
Cost-leadership strategy - (answer) Generic business strategy that seeks to create the same or similar
value for customers at a lower cost
Differentiation strategy - (answer) Generic business strategy that seeks to create higher value for
customers than the value that competitors create, while containing costs
Diseconomies of scale - (answer) Increases in cost per unit when output increases
Economies of scale - (answer) Decreases in cost per unit as output increases
Economies of scope - (answer) Savings that come from producing two or more outputs at less cost than
producing each output individually, despite using the same resources and technology
Minimum efficient scale (MES) - (answer) Output range needed to bring down the cost per unit as
much as possible, allowing a firm to stake out the lowest-cost position that is achievable through
economies of scale
Strategic trade-offs - (answer) Choices between a cost or value position. Such choices are necessary
because higher value creation tends to generate higher cost
Architectural innovation - (answer) A new product which known components, based on existing
technologies, are reconfigured In a novel way to attack new markets
Disruptive innovation - (answer) An innovation that leverages new technologies to attack existing
markets from the bottom up
, WPC 470 MOORE ASU FINAL EXAM NEWEST 2024 EXAM ACTUAL EXAM COMPLETE 120 QUESTIONS AND
CORRECT DETAILED ANSWERS
Incremental innovation - (answer) An innovation that squarely builds on an established knowledge
base and steadily improves an existing product or service
Process innovation - (answer) New ways to produce existing products or deliver existing services
Value innovation - (answer) The simultaneous pursuit of differentiation and low cost in a way that
creates a leap in value for both the firm and the consumers; considered a cornerstone of blue ocean
strategy
Crossing-the-chasm framework - (answer) Conceptual model that shows how each stage of the
industry life cycle is dominated by a different customer group
Entrepreneurship - (answer) The process by which people undertake economic risk to innovate- to
create new products, processes, and sometimes new organizations
First-mover advantages - (answer) Competitive benefits that accrue to the successful innovator
Industry life cycle - (answer) The five different stages; introduction, growth, shakeout, maturity, and
decline, that occur in the evolution of an industry over time
Network effects - (answer) The positive effect (externality) that one user of a product or service has on
the value of that product for other users
Patent - (answer) A form of intellectual property that gives the inventor exclusive rights to benefit from
commercializing a technology for a specified time period in exchange for public disclosure of the
underlying idea
Platform business - (answer) An enterprise that creates value by matching external producers and
consumers in a way that creates value for all participants, and that depends on the infrastructure or
platform that the enterprise manages
