GM 105 Chapter 6 Questions and Answers GradeAplus

Question 1 The ____ is the range of output needed to minimize the cost per unit as much as possible. Question 2 The minimum efficient scale indicates the level of output needed to ___ the cost per unit as much as po ...

Question 1 The ____ is the range of output needed to minimize the cost per unit as much as possible. Question 2 The minimum efficient scale indicates the level of output needed to ___ the cost per unit as much as possible. Question 3 To formulate an appropriate business-level strategy, managers must answer the “who-what-why-and-how” questions of competition. Which of the following would be the appropriate questions to answer? Question 4 A tablet manufacturer that includes a free stylus with every purchase is using ____ to enhance user’s experiences and increase the perceived value of its tablets. Question 5 Two important features that managers can adjust in an effort to improve the firm’s strategic position are ___ Question 6 A firm that pursues a differentiation strategy will often find that the added expense of offering new or unique product features offsets the increase in perceived value, and profit margins begin to erode, this underscores the importance of ___ control for firms pursuing a differentiation strategy. Question 7 Managers must make strategic trade-offs involving choices between cost and value because Question 8 Which of the following are questions that managers must answer when pursuing value innovation? Question 9 A manufacturer of electronic components can use its manufacturing machines to produce many different components such as semiconductors, sensors, and capacitors. In this case, the firm benefits from an economy of _____, reducing overall production costs by finding multiple uses for its components and facilities. Question 10 To formulate an appropriate business-level strategy, managers must answer the _____ questions of competition. Question 11 Which of the following are examples of ways that a large retailing firm can increase the perceived value of its offerings by focusing on customer service? Question 12 Whereas the firm’s strategic position can be considered either differentiated or cost-focused the scope of competition is considered Question 13 Products in the affordable “business-casual” clothing market have largely become commoditized, and most retailers have begun to compete mainly on price rather than product features. In this environment, it is impossible for one retailer to gain market share without another losing it. This is an example of a _______ ocean. Question 14 Which two of the following variables can managers primarily manipulate in order to answer the question “how should we compete?” Question 15 A firm that increases its output of a given product and experiences a simultaneous decrease in per unit costs is taking advantage of Question 16 The most important cost drivers are Question 17 High-end pen manufacturer Mont Blanc pursues a differentiation strategy with a ____ scope of competition, pursuing only those who need or want an expensive writing instrument. Question 18 The Ritz-Carlton provides a personalized customer experience based on sophisticated analysis of data gathered about each guest. This focus on ____ allows the hotel to increase its perceived value. Question 19 A _____ outlines the steps a manager will take to achieve competitive advantage in a single product market. Question 20 Which of the following are considered the two basic business-level strategies? Question 21 A firm experiences ____ when in increase in output results in an increase in costs. Question 22 Different value drivers contribute to competitive advantage if Question 23 A firm’s strategic profile based on value creation and cost is called its ______ Question 24 The beneficial effect of a differentiation strategy on the power of suppliers in an industry is Question 25 The most significant challenge Jet Blue has faced in implementing its business strategy is Question 25 An auto manufacturer that has access to cheaper labor and raw materials than its rivals will have a competitive advantage regarding lower cost of _____ factors Question 26 By using a differentiation strategy, a firm aims to Question 27 Larger output allows firms to invest in more specialized systems such as Question 28 A firm’s competitive advantage is determined jointly by ____ effects and firm effects Question 29 Which of the following are significant threats to a firm pursuing a cost-leadership strategy? Question 30 Diseconomies of scale often appear when a firm Question 31 The goal of a ____-_____ strategy is to achieve costs below those of competitors while maintaining similar value. A firm with this strategy could or could not achieve differentiation parity. Question 32 The two factors upon which a successful business-level strategy is built are Question 33 Which of the following scenarios would result in strengthening a firm’s strategic position? Question 34 Which of the following are pricing options offered by a blue ocean strategy? Question 35 A struggling retailer seeking to implement a blue ocean strategy is likely to experience difficulty with Question 36 Which of the following are components of a cost-leadership strategy? Question 37 Choosing a business-level strategy helps to define firms _____ in a given product market Question 38 A producer of consumer headphones that successfully differentiates its products with a patented noise-cancelling technology and celebrity endorsements will enjoy which of the following benefts? Question 39 If two firms produce very similar products at the same rate of output, and firm A is able to achieve lower per-unit costs than firm B by taking advantage of a new manufacturing technology, firm A is benefiting from Question 40 Economies of scale present an opportunity to increase profits because as the number of units within the relevant range increases, fixed costs Question 41 A firm that manages to avoid competition entirely by offering a product or service that creates an uncontested market space is engaging in Question 42 The cube-square rule makes it ___ for smaller stores to compete with larger retailers Question 43 A differentiation strategy can be threatened when Question 44 When pursuing a differentiation strategy, a firm can achieve a competitive advantage by Question 45 A firm pursuing a blue ocean strategy can increase its profit margins by implementing which of the following pricing options? Question 46 A firm that offers a liberal return policy and free shipping on goods ordered online hopes to increase its perceived value by focusing on Question 47 Which capability is required to create superior product features? Question 48 The concept of a(n) _____ attempts to combine both learning effects and process improvements Question 49 Managers can increase the perceived value of their firms’ product or service offerings by focusing on: Question 50 Why do many firms fail to successfully implement an integration strategy? Question 51 In the learning curve, the ____ the learning curve, the more learning takes place. Question 52 A differentiation strategy is typically associated with ___ pricing.