Question 1

Differentiated businesses

Accepted Answer

Differentiated businesses focus on innovation and uniqueness in their products or services, thus they emphasize reward systems that encourage innovation to maintain their competitive edge.

Question 2

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

Accepted Answer

A low-cost business strategy emphasizes efficiency and cost reduction. Emphasizing operation efficiencies through learning, economies of scale, and capital-labor substitution possibilities will help the business achieve cost reduction and stay competitive. Emphasizing quality in operations even when the cost of doing so is high (option A) or specialized quality in operations even when costs are high (option D) will increase the cost of production and may not be appropriate for a low-cost business strategy. Emphasizing quality in operations when the cost of doing so is relatively low (option B) is not enough for a low-cost business as they need to constantly strive for cost reduction to stay competitive.

Question 3

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

Accepted Answer

A differentiated business focuses on providing unique products or services that cater to specific customer needs. Emphasizing quality in operations, even when the cost is high, allows the business to differentiate its offerings and create a competitive advantage.

Question 4

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

Accepted Answer

Human capital refers to the skills, knowledge, experience, and abilities of the people within an organization, and the sum of these capabilities can be seen as the organization's overall human capital. Organizational learning and knowledge management are related concepts, but they are focused on the processes and systems that help organizations improve their overall knowledge and performance.

Question 5

Differentiated businesses tend to emphasize

Accepted Answer

Differentiated businesses tend to emphasize product/service R&D in order to create unique and innovative products or services that differentiate them from their competitors. This allows them to charge higher prices and maintain a competitive advantage. While process R&D may also be important in improving efficiency or reducing costs, it is typically not the primary focus for differentiated businesses.

Question 6

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

Accepted Answer

The answer of Explain the component parts of the experience...

Question 7

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

Accepted Answer

The answer of What differences in financial strategies would you...

Question 8

Low-cost businesses

Accepted Answer

Low-cost businesses focus on minimizing expenses, so they prioritize having timely and relevant information on operational costs to identify areas for cost reduction.

Question 9

Low cost businesses

Accepted Answer

Low cost businesses focus on strategies that minimize expenses to maintain competitive pricing. Reward systems that encourage cost reductions align with this goal by motivating employees to find ways to save money and operate more efficiently.

Question 10

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

Accepted Answer

A low-cost business requires efficient operations to keep costs down. Emphasizing operation efficiencies through learning, economies of scale, and capital-labor substitution possibilities is the most appropriate production strategy for achieving this goal. Emphasizing quality, especially specialized quality, can increase costs and is not as important for a low-cost business.

Question 11

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

Accepted Answer

The answer of Identify,explain,and provide examples of the component parts...

Question 12

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

Accepted Answer

Consistency of perspectives across the organization may not necessarily facilitate learning capabilities as it can lead to stagnant thinking and resistance to new ideas. Diversity of perspectives and openness to new ideas are important factors in facilitating organizational learning. Therefore, option D is incorrect as it suggests all options can facilitate organizational learning capabilities.

Question 13

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

Accepted Answer

The answer of Do differentiated businesses spend more on R&D...

Question 14

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

Accepted Answer

An analyzer strategic emphasis refers to a focus on monitoring and adapting to the external environment, which can be helpful for organizational performance, but is not necessarily directly related to facilitating learning capabilities. Multiple advocates and involved leadership, on the other hand, can help create a culture of learning and support for knowledge sharing within an organization. Therefore, choice C is the only option that is not a direct factor in facilitating organizational learning capabilities.

Question 15

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

Accepted Answer

All of the above components (economies of scale, capital-labor substitution, and learning) are included in the experience curve.

Question 16

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

Accepted Answer

Purchasing at low costs through quantity discounts and efficiently controlling inventory tends to be associated with a low-cost strategy. This allows the company to minimize costs and offer competitive prices to customers. Option B focuses on high-quality inputs, which may not align with a low-cost strategy. Option C also considers high-quality inputs but with cost considerations, which may not necessarily result in a low-cost strategy.

Question 17

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

Accepted Answer

The given definition does not match with any of the options provided. Therefore, the answer is "None of the above".

Question 18

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

Accepted Answer

The answer of Explain the just-in-time inventory system.Identify situations in...

Question 19

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

Accepted Answer

The answer of The perspective suggesting that people and their...

Question 20

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

Accepted Answer

A low-cost-differentiation strategy focuses on balancing cost efficiency with quality, so purchasing high-quality inputs at low costs and managing storage and inventory with care but cost-effectively aligns with this strategy.

Quiz 8: Functional Strategies

Differentiated businesses

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

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

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

Differentiated businesses tend to emphasize

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

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

Low-cost businesses

Low cost businesses

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

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

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

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

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

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

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

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

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

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

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