WPC 470 TEST QUESTIONS & ANSWERS
There exist important trade-offs between value creation and low cost because value
creation and cost tend to be - Answer -positively correlated.
Firms pursuing a cost-leadership strategy seek to - Answer -deliver products or
services at a lower cost than competitors.
Oberlo Autos competes against the global leaders in the automobile industry by
developing and selling acceptable quality vehicles at a lower price. This has been
possible due to the company's large-scale production that reduces its manufacturing
expenses. Which of the following generic business strategies is Oberlo Autos applying
in this scenario? - Answer -cost-leadership strategy
In a focused differentiation strategy, a firm seeks to - Answer -deliver products or
services with unique features to a specific, narrow part of the market.
If costs are equal, when a firm has a higher value gap than its competitor, it can be
inferred that the firm - Answer -can charge a premium price for its products and
services.
Fones Inc. and Speed Dial Corp. are two competitors in the mobile phone market. The
cost incurred by each company to manufacture smartphones is $200 per unit. Although
both the companies sell their smartphones at the same price, Speed Dial Corp. has a
larger market share in the smartphone industry. What does this imply? - Answer -
Speed Dial Corp. has been able to offer more perceived value than Fones Inc.
While SMART Tech Inc. incurs $350 to manufacture a laptop, its competitor, Better
Electronics Inc., incurs $300. However, laptops of both the companies have been able
to create the same value among customers. From the given scenario, it can be inferred
that - Answer -Better Electronics and SMART Tech share a differentiation parity.
There are several cost drivers that can be managed in order to establish a low-cost
leadership advantage. One of the primary cost drivers is - Answer -combining
experience-based learning and process innovation to move onto a steeper learning
curve.
Which of the following statements accurately brings out the difference between
economies of scale and learning effects? - Answer -Learning effects occur over time,
whereas economies of scale are captured at one point in time when output is increased.
An experience curve attempts to capture both - Answer -learning effects and process
improvements.
There exist important trade-offs between value creation and low cost because value
creation and cost tend to be - Answer -positively correlated.
Firms pursuing a cost-leadership strategy seek to - Answer -deliver products or
services at a lower cost than competitors.
Oberlo Autos competes against the global leaders in the automobile industry by
developing and selling acceptable quality vehicles at a lower price. This has been
possible due to the company's large-scale production that reduces its manufacturing
expenses. Which of the following generic business strategies is Oberlo Autos applying
in this scenario? - Answer -cost-leadership strategy
In a focused differentiation strategy, a firm seeks to - Answer -deliver products or
services with unique features to a specific, narrow part of the market.
If costs are equal, when a firm has a higher value gap than its competitor, it can be
inferred that the firm - Answer -can charge a premium price for its products and
services.
Fones Inc. and Speed Dial Corp. are two competitors in the mobile phone market. The
cost incurred by each company to manufacture smartphones is $200 per unit. Although
both the companies sell their smartphones at the same price, Speed Dial Corp. has a
larger market share in the smartphone industry. What does this imply? - Answer -
Speed Dial Corp. has been able to offer more perceived value than Fones Inc.
While SMART Tech Inc. incurs $350 to manufacture a laptop, its competitor, Better
Electronics Inc., incurs $300. However, laptops of both the companies have been able
to create the same value among customers. From the given scenario, it can be inferred
that - Answer -Better Electronics and SMART Tech share a differentiation parity.
There are several cost drivers that can be managed in order to establish a low-cost
leadership advantage. One of the primary cost drivers is - Answer -combining
experience-based learning and process innovation to move onto a steeper learning
curve.
Which of the following statements accurately brings out the difference between
economies of scale and learning effects? - Answer -Learning effects occur over time,
whereas economies of scale are captured at one point in time when output is increased.
An experience curve attempts to capture both - Answer -learning effects and process
improvements.
