MAN 4720 Final Exam UCF (Capstone UCF) With Complete Answers Graded A 2023

A - What is a generic business strategy? A. a general way of positioning a firm's business-level strategy within an industry B. a general way of positioning a firm's business-level strategy to penetrate an international market C. a general strategy that positions your firm in a competitive position within an industry D. all of the above A - What are the two dimensions on which generic business strategies are classified? A. breadth of competitive scope/source of competitive advantage B. breadth of product line/source of competitive advantage C. breadth of competitive scope/extent of vertical integration D. breadth of product line/extent of vertical integration D - Which of the following is not a main generic strategies? A. cost leadership B. differentiation C. focused low cost D. focused penetration F - Which of the following is an example of one of the main generic strategies? A. differentiation B. diversification C. focused low cost D. cost abandonment E. B & C F. A & C A - Which generic business strategy is on the intersection of competing on cost and targeting a broad market? A. cost leadership B. differentiation C. focused low cost D. focused differentiation T - T/F: The experience curve is known as the decline in unit cost of production as cumulative output increases - based on knowledge/expertise. F - T/F: Economies of scale refers to an increase in unit cost of production as rate of output increases (based on spreading out fixed costs). C - All of the following are disadvantages of cost leadership EXCEPT: A. perceptions of quality B. relies on volume C. harder to survive price wars D. can be too focused on cost B - Which of the following is a disadvantage of cost leadership: A. perceptions of service B. can be focused too much on cost C. relies on demand D. none of the above B - All of the following are advantages of cost leadership EXCEPT: A. high profits through volume B. perceptions of quality C. easier to survive price wars D. all of the above F - Which of the following is an advantage of cost leadership? A. perceptions of cost B. easier to survive price wars C. low profits through volume D. high profits through volume E. A & C F. B & D B - Which generic business strategy is on the intersection of competing on uniqueness and targeting a broad market? A. cost leadership B. differentiation C. focused low cost D. focused differentiation T - T/F: Innovation becomes really important with a differentiation business strategy. F - T/F: Differentiation strategies face threats from knock offs but are not sensitive to price wars. F - T/F: Differentiation prevents a firm from creating brand loyalty and increasing profit margins. C - Which generic business strategy is on the intersection of competing on cost and targeting a narrow market? A. cost leadership B. differentiation C. focused low cost D. focused differentiation A - Which of the following IS NOT a disadvantage of focused generic business strategies? A. lower profit margins B. limited demand C. niche may change or disappear D. all of the above B - Which of the following is a disadvantage of focused generic business strategies? A. lower profit margins B. limited demand C. decreased uniqueness of products D. hardest strategy to implement D - Which generic business strategy is on the intersection of competing on uniqueness and targeting a narrow market? A. cost leadership B. differentiation C. focused low cost D. focused differentiation C - You are a consultant for Toyota and have determined that in the car manufacturing market, their products are offered at a much lower price than competitors, but are also substantially differentiated from competitors. The most accurate description of Toyota's generic strategy is: A. Differentiation B. Overall Cost Leadership C. Best Cost Strategy D. Focused Differentiation T - T/F: Companies will choose a generic business strategy to avoid becoming "stuck in the middle". These firms are the ones that don't try to compete on either differentiation or cost. D - A company using a best cost strategy may do all of the following EXCEPT: A. use more than one generic strategy B. compete on price and uniqueness C. might consider different strategies for different brands D. uses the single best strategy possible to obtain the best cost available C - You are a consultant for Embraer and have determined that in the airplane manufacturing market, their products are significantly cheaper than the competitors, but they're still a little differentiated from the competition. In addition, they seem to target the entire airplane-purchasing market. The most accurate description of Embraer's generic strategy (or lack thereof) is: A. Stuck in the Middle B. Differentiation C. Overall Cost Leadership D. Focused Low Cost E. Focused Differentiation A - Ferns and Flowers sells unique products such as exotic plants, flowers, pots, and plant care services to a narrow market. Which of the following would be true about Ferns and Flowers? A. The shop can charge very high prices for its unique products. B. It need not worry about damaging attacks from larger firms. C. It is protected from the damaging attacks of smaller shops that adopt an even narrower focus. D. The shop will never have its growth stymied despite the fact that it serves a niche market. E. The niche, that is the area of operation of Ferns and Flowers, cannot be made to disappear or be taken over by larger competitors. C - A firm is said to be _____ if it does not offer features that are unique enough to convince customers to buy its offerings and its prices are too high to effectively compete on based on price.