WPC 470 PART 2 QUESTIONS & ANSWERS
Which of the following represents a risk for companies pursuing a cost leadership
strategy? - Answer -Competitors' innovations resulting in their ability to drive costs
lower
Many companies pursue an integrated cost leadership/differentiation strategy, working
to lower cost structures while also enhancing their products and services. To
successfully pursue this strategy, companies could: - Answer -invest in developing total
quality management (TQM) systems and improving marketing effectiveness.
Which of the following strategies could be implemented to improve a company's
richness in its customer relationships? - Answer -Satisfaction surveys following the
arrival of a produc
The effectiveness of a business-level strategy is contingent on: - Answer -the
opportunities and threats in a firm's external environment and the strengths and
weaknesses of a firm's resources.
Which of the following is an example of a subscription business model? - Answer -We
Craft Box, which delivers monthly craft supplies and instructions for children for about
$25 per month
To be successful, a firm utilizing an integrated cost leadership/differentiation strategy
must: - Answer -increase the number of primary value chain activities and support
functions in which it becomes competent
A differentiation strategy is one in which a firm: - Answer -creates products that have
features that customers value and are willing to pay a higher price for
An industry-leading technology firm utilizing a differentiation strategy has decided to
increase prices on its patented product to bolster profit margins and deliver a higher
return to investors. Consider the impact of this decision in light of the forces of
competition. Which of the following situations should the firm prioritize? - Answer -
Rivalry with existing competitors
A cost leadership strategy is one in which: - Answer -a company uses process
innovations, such as advanced production or distribution methods, to operate efficiently
Which of the following might be an alternative definition of business-level strategy? -
Answer -A plan for how the company will compete in its industry against its rivals to
achieve a competitive advantage
, DOS, a leader in the computer industry, implemented a new strategic action to offer a
video streaming service to consumers. The move has proven to be successful. How are
competitors likely to respond? - Answer -They are likely to imitate the action quickly.
The number of markets with which a firm and a competitor are jointly involved and the
degree of importance of the individual markets to each is referred to as: - Answer -
market commonality
Which of the following is an example of multimarket competition? - Answer -Company
A makes tomato sauce sold to consumers in grocery stores and to restaurants.
Company B sells tomato sauce to consumers in grocery stores.
A new family-owned organic grocery store has been successful since its grand opening
nearly a year ago. With little competition in the area, the organic grocery store has been
particularly successful in selling organic food to consumers. The grocer has just found
out that Whole Foods will be starting construction on a new store nearby. The grocery
store feels that its family ownership and locally grown food offerings give it a position in
which to take action against the developing Whole Foods. However, as a small
business, the organic grocery store does not have the financial means to launch a
rivalry against Whole Foods. In this instance, the organic grocery store is missing which
driver of competitive behavior? - Answer -Ability
Firms operating in the same market, offering similar products, and targeting similar
customers are: - Answer -competitors.
By introducing Google Pay in response to Apple Pay, Google hopes to build and defend
its competitive advantages and improve its market position through: - Answer -
competitive behavior
The ongoing set of competitive actions and competitive responses that occurs among
firms as they maneuver for an advantageous market position is: - Answer -competitive
rivalry
Car maker BAAS is known for its risky competitive behavior, including drastically
changing its prices over short time spans. Based on this information, which of the
following is the most likely competitor response? - Answer -Competitors will be less
likely to respond because of BAAS' risky behavior.
Which of the following is NOT a reason for a firm to respond to a competitor's action? -
Answer -The firms have resource dissimilarity.
A firm that responds to the first mover's competitive action, typically through imitation, is
called a: - Answer -second mover.
As soon as United Parcel Service (UPS) moved into overnight delivery, FedEx's strong
point, FedEx bought trucking and ground shipping assets to gain advantage over UPS's
Which of the following represents a risk for companies pursuing a cost leadership
strategy? - Answer -Competitors' innovations resulting in their ability to drive costs
lower
Many companies pursue an integrated cost leadership/differentiation strategy, working
to lower cost structures while also enhancing their products and services. To
successfully pursue this strategy, companies could: - Answer -invest in developing total
quality management (TQM) systems and improving marketing effectiveness.
Which of the following strategies could be implemented to improve a company's
richness in its customer relationships? - Answer -Satisfaction surveys following the
arrival of a produc
The effectiveness of a business-level strategy is contingent on: - Answer -the
opportunities and threats in a firm's external environment and the strengths and
weaknesses of a firm's resources.
Which of the following is an example of a subscription business model? - Answer -We
Craft Box, which delivers monthly craft supplies and instructions for children for about
$25 per month
To be successful, a firm utilizing an integrated cost leadership/differentiation strategy
must: - Answer -increase the number of primary value chain activities and support
functions in which it becomes competent
A differentiation strategy is one in which a firm: - Answer -creates products that have
features that customers value and are willing to pay a higher price for
An industry-leading technology firm utilizing a differentiation strategy has decided to
increase prices on its patented product to bolster profit margins and deliver a higher
return to investors. Consider the impact of this decision in light of the forces of
competition. Which of the following situations should the firm prioritize? - Answer -
Rivalry with existing competitors
A cost leadership strategy is one in which: - Answer -a company uses process
innovations, such as advanced production or distribution methods, to operate efficiently
Which of the following might be an alternative definition of business-level strategy? -
Answer -A plan for how the company will compete in its industry against its rivals to
achieve a competitive advantage
, DOS, a leader in the computer industry, implemented a new strategic action to offer a
video streaming service to consumers. The move has proven to be successful. How are
competitors likely to respond? - Answer -They are likely to imitate the action quickly.
The number of markets with which a firm and a competitor are jointly involved and the
degree of importance of the individual markets to each is referred to as: - Answer -
market commonality
Which of the following is an example of multimarket competition? - Answer -Company
A makes tomato sauce sold to consumers in grocery stores and to restaurants.
Company B sells tomato sauce to consumers in grocery stores.
A new family-owned organic grocery store has been successful since its grand opening
nearly a year ago. With little competition in the area, the organic grocery store has been
particularly successful in selling organic food to consumers. The grocer has just found
out that Whole Foods will be starting construction on a new store nearby. The grocery
store feels that its family ownership and locally grown food offerings give it a position in
which to take action against the developing Whole Foods. However, as a small
business, the organic grocery store does not have the financial means to launch a
rivalry against Whole Foods. In this instance, the organic grocery store is missing which
driver of competitive behavior? - Answer -Ability
Firms operating in the same market, offering similar products, and targeting similar
customers are: - Answer -competitors.
By introducing Google Pay in response to Apple Pay, Google hopes to build and defend
its competitive advantages and improve its market position through: - Answer -
competitive behavior
The ongoing set of competitive actions and competitive responses that occurs among
firms as they maneuver for an advantageous market position is: - Answer -competitive
rivalry
Car maker BAAS is known for its risky competitive behavior, including drastically
changing its prices over short time spans. Based on this information, which of the
following is the most likely competitor response? - Answer -Competitors will be less
likely to respond because of BAAS' risky behavior.
Which of the following is NOT a reason for a firm to respond to a competitor's action? -
Answer -The firms have resource dissimilarity.
A firm that responds to the first mover's competitive action, typically through imitation, is
called a: - Answer -second mover.
As soon as United Parcel Service (UPS) moved into overnight delivery, FedEx's strong
point, FedEx bought trucking and ground shipping assets to gain advantage over UPS's
