Deck 8: Functional Strategies

Question 1

Which of the following marketing strategies is most appropriate for a differentiated business?

A)Emphasize low-cost distribution and low-cost advertising and promotion.
B)Emphasize specialized distribution and targeted advertising and promotion at the lowest cost possible.
C)Emphasize differentiated distribution,and advertising and promotion,on a large scale at the lowest cost possible.
D)Emphasize differentiated distribution and advertising and promotion on a large scale.

Answer 1

D

Question 2

Which of the following financial strategies is most appropriate for a low-cost business?

A)Lower financial costs by borrowing when credit costs are low and issuing stock when the market is strong.
B)Emphasize obtaining resources and funding output improvements or innovations at the lowest possible costs.
C)Emphasize obtaining resources and funding output improvements or innovations,even when financial costs may be high.
D)None of the above.

Answer 2

A

Question 3

Low-cost businesses emphasize timely and pertinent information on the ongoing specialized processes that yield unique products/services.

Answer 3

True

Question 4

Which of the following marketing strategies is most appropriate for a low-cost-differentiation business?

A)Emphasize low-cost distribution and low-cost advertising and promotion.
B)Emphasize specialized distribution and targeted advertising and promotion at the lowest cost possible.
C)Emphasize differentiated distribution,and advertising and promotion,on a large scale at the lowest cost possible.
D)Emphasize differentiated distribution and advertising and promotion on a large scale.

Question 5

Knowledge management refers to the sum of the capabilities of individuals in an organization.

Question 6

Quality problems are generally limited to poorly managed firms.

Question 7

Differentiated businesses tend to emphasize process R&D.

Question 8

Low-cost businesses emphasize low initial investments in plants,equipment,and outlets,and low operation costs.

Question 9

Learning is the idea that per-unit production costs decrease when volume increases.

Question 10

Just-in-time manufacturing often improves quality but usually does not influence costs.

Question 11

Which of the following financial strategies is most appropriate for a low-cost-differentiation business?

A)Lower financial costs by borrowing when credit costs are low and issuing stock when the market is high.
B)Emphasize specialized quality of operations when the cost of doing so is relatively low.
C)Emphasize obtaining resources and funding output improvements or innovations,even when financial costs may be high.
D)None of the above.

Question 12

Differentiated businesses typically emphasize reward systems that encourage cost reductions and innovation.

Question 13

In general,differentiated businesses emphasize obtaining resources and funding output improvements or innovations,even when financial costs may be high.

Question 14

Differentiated businesses should emphasize specialized distribution and targeted advertising and promotion at the lowest cost possible.

Question 15

Which of the following is not true about functional strategies?

A)They should be considered before the business strategy is formulated.
B)The support the implementation of the business strategy.
C)They should be formulated after the business strategy but before the corporate strategy.
D)All of the above are true.

Question 16

Capital restructuring refers to an organization's ability to substitute labor for capital,or vice versa as volume increases,depending upon which combination minimizes costs and/or maximizes effectiveness.

Question 17

Process R&D seeks to reduce operational costs and make them more efficient.

Question 18

Low-cost-differentiated businesses should emphasize mass distribution and promotion,regardless of cost.

Question 19

Knowledge can be a source of competitive advantage regardless of the choice of generic strategy.

Question 20

Whether it is conducted in-house or outsourced,an information system is deemed effective if it helps the business carry out its strategy.

Question 21

Differentiated businesses

A)emphasize reward systems that encourage cost reductions.
B)Emphasize reward systems that encourage innovation.
C)Emphasize reward systems that encourage cost reductions and innovation.
D)None of the above.

Question 22

Which of the following production strategies is most appropriate for a low-cost business?

A)Emphasize quality in operations even when the cost of doing so is high.
B)Emphasize quality in operations when the cost of doing so is relatively low.
C)Emphasize operation efficiencies through learning,economies of scale,and capital-labor substitution possibilities.
D)Emphasize specialized quality in operations even when costs are high.

Question 23

Which of the following production strategies is most appropriate for a differentiated business?

A)Emphasize quality in operations even when the cost of doing so is high.
B)Emphasize quality in operations when the cost of doing so is relatively low.
C)Emphasize operation efficiencies through learning,economies of scale,and capital-labor substitution possibilities.
D)Emphasize specialized quality in operations even when costs are high.

Question 24

The sum of the capabilities of individuals in an organization is known as

A)human capital.
B)organizational learning.
C)knowledge management.
D)None of the above.

Question 25

Differentiated businesses tend to emphasize

A)process R&D.
B)product/service R&D.
C)both process & product/service R&D.
D)neither process not product/service R&D.

Question 26

Explain the component parts of the experience curve.How is this concept related to the production strategy?

Question 27

What differences in financial strategies would you expect to see between a business employing a low-cost strategy and one employing a differentiation strategy?

Question 28

Low-cost businesses

A)emphasize reward systems that encourage cost reductions and innovation.
B)emphasize timely and pertinent information on costs of operations.
C)emphasize timely and pertinent information on the ongoing processes that yield unique products/services.
D)None of the above.

Question 29

Low cost businesses

A)emphasize reward systems that encourage cost reductions.
B)Emphasize reward systems that encourage innovation.
C)Emphasize reward systems that encourage cost reductions and innovation.
D)None of the above.

Question 30

Which of the following production strategies is most appropriate for a low-cost business?

A)Emphasize quality in operations even when the cost of doing so is high.
B)Emphasize quality in operations when the cost of doing so is relatively low.
C)Emphasize operation efficiencies through learning,economies of scale,and capital-labor substitution possibilities.
D)Emphasize specialized quality in operations even when costs are high.

Question 31

Identify,explain,and provide examples of the component parts of any marketing strategy.

Question 32

Which of the following is not a factor that can facilitate organizational learning capabilities?

A)consistency of perspectives across the organization.
B)a climate of openness.
C)a scanning imperative.
D)All of the above can facilitate organizational learning capabilities.

Question 33

Do differentiated businesses spend more on R&D than their low cost counterparts? Explain.

Question 34

Which of the following is not a factor that can facilitate organizational learning capabilities?

A)Multiple advocates
B)Involved leadership.
C)An analyzer strategic emphasis.
D)All of the above can facilitate organizational learning capabilities.

Question 35

Which of the following is not a component part of the experience curve?

A)economies of scale
B)capital-labor substitution
C)learning
D)All of the above are components of the experience curve.

Question 36

Which purchasing strategy tends to be associated with a low-cost strategy?

A)Purchase at low costs through quantity discounts; operate storage and warehouse facilities and control inventory efficiently..
B)Purchase high-quality inputs,even if they cost more; conduct storage,warehouse,and inventory activities with extensive care,even if costs are higher.
C)Purchase high-quality inputs,but only if costs are low; conduct storage,warehouse,and inventory activities with care,but only if costs are relatively low
D)None of the above.

Question 37

An organization's ability to substitute labor for capital or vice versa as volume increases is known as

A)economies of scale.
B)economies of scope.
C)differentiation economies.
D)None of the above.

Question 38

Explain the just-in-time inventory system.Identify situations in which JIT tends to be effective and ineffective.

Question 39

The perspective suggesting that people and their skills and abilities represent the only resource that cannot readily be reproduced by a firm's competitors if it is deemed to be a source of competitive advantage is known as

A)capital assessment.
B)resource based theory.
C)knowledge management.
D)None of the above.

Question 40

Which purchasing strategy tends to be associated with a low-cost-differentiation strategy?

A)Purchase at low costs through quantity discounts; operate storage and warehouse facilities and control inventory efficiently.
B)Purchase high-quality inputs,even if they cost more; conduct storage,warehouse,and inventory activities with extensive care,even if costs are higher.
C)Purchase high-quality inputs,but only if costs are low; conduct storage,warehouse,and inventory activities with care,but only if costs are relatively low.
D)None of the above.