1
BUS 475 EXAM 2 LATEST ACTUAL
QUESTIONS AND CORRECT DETAILED
ANSWERS
While there are many routes to competitive advantage, the two biggest factors
that distinguish one competitive strategy from another are - (ANSWER)Whether a
company's target market is broad or narrow and whether the company is
pursuing a low cost or differentiation strategy
The major avenues for achieving a cost advantage over rivals include -
(ANSWER)Performing value chain activities more cost-effective than rivals or
revamping the firm's overall value chain to eliminate or bypass some cost-
producing activities
A potato chip manufacturer purchases a potato farm. Which of the following
regarding its strategy is true? - (ANSWER)The manufacturer has effectively used
vertical integration to increase its bargaining position and reduce transaction
costs
The essence of a broad differentiation strategy is to - (ANSWER)Offer unique
product attributes in ways that are valuable and appealing and that the buyer
considers worth paying for
A differentiation strategy works best when - (ANSWER)Technological change is
fast-paced and competition revolves around rapidly evolving product features
, 2
A focused differentiation strategy aims at securing competitive advantage by -
(ANSWER)Offering a product carefully designed to appeal to the unique
preferences and needs of a narrow, well-defined group of buyers
A low cost provider strategy can defeat a differentiation strategy when -
(ANSWER)Customers are basically satisfied and don't think extra attributes are
worth higher price features
A firm pursuing a best cost provider strategy - (ANSWER)Seeks to deliver superior
value to buyers by satisfying their expectations on key attributes and beating
rivals in meeting customer expectations on price
The primary reasons that companies opt to expand into foreign markets are to -
(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
One of the biggest strategic challenges to competing in the international area
includes - (ANSWER)Whether to offer standardized product worldwide or
customized product offering in each different country market
The difference between political risks and economic risks is that -
(ANSWER)Political risks stem from instability or weakness in national
governments, while economic risks stem from the stability of a country's
monetary system and its economic and regulatory policies
BUS 475 EXAM 2 LATEST ACTUAL
QUESTIONS AND CORRECT DETAILED
ANSWERS
While there are many routes to competitive advantage, the two biggest factors
that distinguish one competitive strategy from another are - (ANSWER)Whether a
company's target market is broad or narrow and whether the company is
pursuing a low cost or differentiation strategy
The major avenues for achieving a cost advantage over rivals include -
(ANSWER)Performing value chain activities more cost-effective than rivals or
revamping the firm's overall value chain to eliminate or bypass some cost-
producing activities
A potato chip manufacturer purchases a potato farm. Which of the following
regarding its strategy is true? - (ANSWER)The manufacturer has effectively used
vertical integration to increase its bargaining position and reduce transaction
costs
The essence of a broad differentiation strategy is to - (ANSWER)Offer unique
product attributes in ways that are valuable and appealing and that the buyer
considers worth paying for
A differentiation strategy works best when - (ANSWER)Technological change is
fast-paced and competition revolves around rapidly evolving product features
, 2
A focused differentiation strategy aims at securing competitive advantage by -
(ANSWER)Offering a product carefully designed to appeal to the unique
preferences and needs of a narrow, well-defined group of buyers
A low cost provider strategy can defeat a differentiation strategy when -
(ANSWER)Customers are basically satisfied and don't think extra attributes are
worth higher price features
A firm pursuing a best cost provider strategy - (ANSWER)Seeks to deliver superior
value to buyers by satisfying their expectations on key attributes and beating
rivals in meeting customer expectations on price
The primary reasons that companies opt to expand into foreign markets are to -
(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
One of the biggest strategic challenges to competing in the international area
includes - (ANSWER)Whether to offer standardized product worldwide or
customized product offering in each different country market
The difference between political risks and economic risks is that -
(ANSWER)Political risks stem from instability or weakness in national
governments, while economic risks stem from the stability of a country's
monetary system and its economic and regulatory policies
