Strategy Ch6 Exam Test Questions And Answers Verified
100% Correct
Which one of the following is not an offensive strategy option?
A. Adopting or improving on good ideas of other companies (rivals or otherwise)
B. Deliberately attacking those market segments where key rivals make big profits
C. Launching a preemptive strike to capture a rare opportunity
D. Offering an equally good or better product at a lower price
E. Introducing new features or models to fill vacant niches in its overall product offering
and better match the product offerings of key rivals - ANSWER B.
Which one of the following is not a good type of rival for an offensive-minded company
to target?
A. Market leaders that are vulnerable
B. Runner-up firms with weaknesses in areas where the offensive-minded challenger is
strong
C. Small local and regional companies with limited capabilities
D. Struggling enterprises that are on the verge of going under
E. Other offensive-minded companies with a sizable war chest of cash and marketable
securities - ANSWER E.
A blue ocean type of offensive strategy
A. refers to initiatives by a market leader to steal customers away from unsuspecting
smaller rivals.
B. involves a preemptive strike to secure an advantageous position in a fast-growing
market segment.
,C. entails attacking rivals head-on with deep price discounts and continuous product
innovation.
D. involves abandoning efforts to beat out competitors in existing markets and, instead,
inventing a new industry or new market segment that renders existing competitors
largely irrelevant and allows a company to create and capture altogether new demand.
E. involves the use of surprise hit-and-run guerrilla tactics to harass money-losing rivals
and drive them into bankruptcy. - ANSWER D.
A blue ocean strategy
A. is an offensive attack used by a market leader to steal customers away from
unsuspecting smaller rivals.
B. involves a preemptive strike to secure an advantageous position in a fast-growing
market segment.
C. works best when a company is the industry's low-cost leader.
D. offers growth in revenues and profits by discovering or inventing a new industry or
distinct market segment that allows a company to create and capture altogether new
demand.
E. involves the use of highly creative, never-used-before strategic moves to attack the
competitive weaknesses of rivals. - ANSWER D.
The purposes of defensive strategies include
A. discouraging deep price discounting on the part of ambitious rivals seeking to capture
additional sales and market share.
B. lowering the risk of being attacked by rivals, weakening the impact of any attack that
occurs, and influencing challengers to aim their offensive efforts at other rivals.
C. insulating a company from the impact of competitive pressures and industry driving
forces.
D. weakening competitors in ways that make them largely irrelevant.
E. widening a company's competitive advantage over rivals. - ANSWER B.
, Which one of the following is not a good example of a defensive strategy to protect a
company's market share and competitive position?
A. Adding new features or models and otherwise broadening the product line to close
off vacant niches and gaps to opportunity-seeking challengers
B. Thwarting the efforts of rivals to attack with lower prices by maintaining economy-
priced options of its own
C. Engaging in a preemptive strike strategy in an effort to discourage rivals from being
aggressive
D. Signaling challengers that retaliation is likely in the event that they launch an attack
E. Making early announcements about impending new products or price changes to
induce potential buyers to postpone switching - ANSWER C.
Which of the following is not an example of a defensive move to protect a company's
market position and restrict a challenger's options for initiating competitive attack?
A. Granting volume discounts or better financing terms to dealers/distributors and
providing discount coupons to buyers to help discourage them from experimenting
with other suppliers/brands
B. Signaling challengers that retaliation is likely in the event they launch an attack
C. Publicly committing the company to a policy of matching a competitors' terms or
prices
D. Maintaining a war chest of cash and marketable securities
E. Challenging struggling runner-up firms that are on the verge of going under -
ANSWER E.
Which of the following is a potential defensive move to ward off challenger firms?
A. Granting volume discounts or better financing terms to dealers/distributors and
providing discount coupons to buyers to help discourage them from experimenting
with other suppliers/brands
B. Signaling challengers that retaliation is likely in the event they launch an attack
100% Correct
Which one of the following is not an offensive strategy option?
A. Adopting or improving on good ideas of other companies (rivals or otherwise)
B. Deliberately attacking those market segments where key rivals make big profits
C. Launching a preemptive strike to capture a rare opportunity
D. Offering an equally good or better product at a lower price
E. Introducing new features or models to fill vacant niches in its overall product offering
and better match the product offerings of key rivals - ANSWER B.
Which one of the following is not a good type of rival for an offensive-minded company
to target?
A. Market leaders that are vulnerable
B. Runner-up firms with weaknesses in areas where the offensive-minded challenger is
strong
C. Small local and regional companies with limited capabilities
D. Struggling enterprises that are on the verge of going under
E. Other offensive-minded companies with a sizable war chest of cash and marketable
securities - ANSWER E.
A blue ocean type of offensive strategy
A. refers to initiatives by a market leader to steal customers away from unsuspecting
smaller rivals.
B. involves a preemptive strike to secure an advantageous position in a fast-growing
market segment.
,C. entails attacking rivals head-on with deep price discounts and continuous product
innovation.
D. involves abandoning efforts to beat out competitors in existing markets and, instead,
inventing a new industry or new market segment that renders existing competitors
largely irrelevant and allows a company to create and capture altogether new demand.
E. involves the use of surprise hit-and-run guerrilla tactics to harass money-losing rivals
and drive them into bankruptcy. - ANSWER D.
A blue ocean strategy
A. is an offensive attack used by a market leader to steal customers away from
unsuspecting smaller rivals.
B. involves a preemptive strike to secure an advantageous position in a fast-growing
market segment.
C. works best when a company is the industry's low-cost leader.
D. offers growth in revenues and profits by discovering or inventing a new industry or
distinct market segment that allows a company to create and capture altogether new
demand.
E. involves the use of highly creative, never-used-before strategic moves to attack the
competitive weaknesses of rivals. - ANSWER D.
The purposes of defensive strategies include
A. discouraging deep price discounting on the part of ambitious rivals seeking to capture
additional sales and market share.
B. lowering the risk of being attacked by rivals, weakening the impact of any attack that
occurs, and influencing challengers to aim their offensive efforts at other rivals.
C. insulating a company from the impact of competitive pressures and industry driving
forces.
D. weakening competitors in ways that make them largely irrelevant.
E. widening a company's competitive advantage over rivals. - ANSWER B.
, Which one of the following is not a good example of a defensive strategy to protect a
company's market share and competitive position?
A. Adding new features or models and otherwise broadening the product line to close
off vacant niches and gaps to opportunity-seeking challengers
B. Thwarting the efforts of rivals to attack with lower prices by maintaining economy-
priced options of its own
C. Engaging in a preemptive strike strategy in an effort to discourage rivals from being
aggressive
D. Signaling challengers that retaliation is likely in the event that they launch an attack
E. Making early announcements about impending new products or price changes to
induce potential buyers to postpone switching - ANSWER C.
Which of the following is not an example of a defensive move to protect a company's
market position and restrict a challenger's options for initiating competitive attack?
A. Granting volume discounts or better financing terms to dealers/distributors and
providing discount coupons to buyers to help discourage them from experimenting
with other suppliers/brands
B. Signaling challengers that retaliation is likely in the event they launch an attack
C. Publicly committing the company to a policy of matching a competitors' terms or
prices
D. Maintaining a war chest of cash and marketable securities
E. Challenging struggling runner-up firms that are on the verge of going under -
ANSWER E.
Which of the following is a potential defensive move to ward off challenger firms?
A. Granting volume discounts or better financing terms to dealers/distributors and
providing discount coupons to buyers to help discourage them from experimenting
with other suppliers/brands
B. Signaling challengers that retaliation is likely in the event they launch an attack
