Question 1

Walmart's actions of becoming more upscale with the intent of taking sales away from Target provided an opening for competitors such as Amazon and Family Dollar to better compete on the basis of price and attract some of Walmart's customer.

Accepted Answer

By shifting towards a more upscale image, Walmart may have alienated some price-sensitive customers who then sought cheaper options offered by competitors like Amazon and Family Dollar.

Question 2

Flexible manufacturing systems,information networks,and total quality management are three techniques that make it possible for firms to implement the focused differentiation strategy.

Accepted Answer

The answer of Flexible manufacturing systems,information networks,and total quality management...

Question 3

In general,firms can be most effective if they develop business-level strategies that will serve the needs of the
"typical customer" in the industry.

Accepted Answer

The answer of In general,firms can be most effective if...

Question 4

A risk of the differentiation strategy is that the firm's means of differentiation may eventually not provide value for which customers are willing to pay.

Accepted Answer

If the firm's means of differentiation become obsolete or commonplace, customers may no longer see a significant value in the differentiation and the firm could lose its competitive advantage.

Question 5

A new generation of lunch trucks in cities such as New York,San Francisco,and Los Angeles serving high-end
fare such as hamburgers made from grass­fed cattle,escargot,and crème brulee illustrate the focus cost leadership
strategy.

Accepted Answer

The answer of A new generation of lunch trucks in...

Question 6

A firm's core strategy is its______strategy.

Accepted Answer

A firm's core strategy refers to the approach or plan it takes to create and sustain a competitive advantage in its specific industry or market. This is typically done through the formulation of a business strategy, which includes elements such as product development, marketing, and operations. A corporate strategy, on the other hand, pertains to the overarching plan for the organization as a whole, including issues such as diversification and resource allocation. Pricing and international strategies may be components of a firm's business strategy, but are not synonymous with the core strategy itself. Therefore, option B is the best choice.

Question 7

The value-creating activities associated with the cost leadership strategy and differentiation strategy are the same.

Accepted Answer

The value-creating activities associated with the cost leadership strategy and differentiation strategy are different. Cost leadership strategy focuses on reducing costs through economies of scale, efficient operations, and low-cost inputs, while differentiation strategy focuses on creating unique and desirable products or services that customers are willing to pay a premium for. The value-creating activities associated with each strategy will therefore be different.

Question 8

The differentiation strategy is effective for products that are expensive,luxury consumer goods. It is not effective for common,inexpensive products such as doughnuts.

Accepted Answer

The statement is not entirely true as differentiation strategy can be effective for common, inexpensive products as well. The key is to identify a unique aspect or feature that sets the product apart from competitors and appeals to a specific target market. For example, a doughnut shop could differentiate itself by offering unique and gourmet flavors, or by using only organic and locally sourced ingredients. However, in general, differentiation strategy is more commonly associated with expensive and luxury products that can command higher prices due to their unique features or brand reputation.

Question 9

Unlike a cost leadership and a differentiation strategy,both focus strategies are less dependent on the completion of various value chain and support activities in order to compete in a superior manner.

Accepted Answer

Focus strategies, like cost leadership and differentiation, also rely on the completion of value chain and support activities to effectively target niche markets and compete successfully.

Question 10

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Accepted Answer

The answer of One of the benefits of the integrated...

Question 11

Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in

Accepted Answer

Business-level strategies focus on how a company will compete within specific product markets. This includes determining how to provide value to customers and gain a competitive advantage by utilizing core competencies. The other options (A, C, and D) are important considerations, but not the primary focus of business-level strategies.

Question 12

Because of its focus on innovation and quality manufacturing,Total Quality Management is not useful for firms that follow a cost leadership strategy.

Accepted Answer

Total Quality Management can be beneficial for firms following a cost leadership strategy as it helps in reducing waste, improving efficiency, and increasing customer satisfaction, ultimately leading to cost savings and competitive advantage. In fact, TQM can be applied to any type of organization, regardless of their strategy or objectives.

Question 13

Human resources and other support functions are not value-creating activities in the value chain; only the value chain activities create value.

Accepted Answer

While human resources and other support functions may not directly create value in the same way that primary value chain activities do, they can still play a crucial role in supporting and enabling those activities. For example, HR may recruit and train skilled employees who are needed to perform the primary activities of manufacturing, marketing, or service delivery. Additionally, support functions like IT, finance, and legal can provide the necessary infrastructure, funding, and legal framework for value chain activities to occur. Therefore, support functions can indirectly contribute to the creation of value in the value chain.

Question 14

A flexible manufacturing system is a computer-controlled process used to produce a variety of products in moderate,flexible quantities with minimal manual intervention.

Accepted Answer

A flexible manufacturing system (FMS) is designed to be adaptable and efficient in producing a wide range of products in different quantities, with minimal need for human intervention. It uses computer-controlled machines and robots to handle tasks such as material handling, processing, assembly, and quality control. FMS can be reconfigured or reprogrammed quickly to produce different products, making it ideal for manufacturers that need to respond to changing market demands and customer preferences.

Question 15

Walmart's change in strategy to attract more upscale customers will likely succeed because cost leaders are good at differentiating.

Accepted Answer

Cost leaders are typically not known for their ability to differentiate their products and services, as their main focus is on offering the lowest prices possible. While Walmart may have some success in attracting more upscale customers with their new strategy, it is unlikely that they will be able to fully differentiate themselves in this market.

Question 16

Although it is a cost leader,IKEA also offers differentiated features that appeal to its target customers,including its unique furniture designs,in-store playrooms for children,wheelchairs for customer use,and extended hours.

Accepted Answer

The statement correctly states that IKEA offers differentiated features along with being a cost leader. These features include unique furniture designs, in-store playrooms for children, wheelchairs for customer use, and extended hours.

Question 17

Research shows that firms using a hybrid strategy (i.e.,integrated cost leadership/differentiation)often outperform firms using pure strategies ( i.e.,cost leadership or differentiation).

Accepted Answer

The answer of Research shows that firms using a hybrid...

Question 18

The activities in the value chains of companies using focus strategies are quite different than the activities in the value chains of companies using industry-wide business strategies.

Accepted Answer

The answer of The activities in the value chains of...

Question 19

The hazard of getting "stuck in the middle" applies to firms using any business strategy.

Accepted Answer

Getting "stuck in the middle" refers to firms that are unable to compete effectively with either low-cost or differentiated competitors. This hazard can apply to firms using any business strategy, including low-cost, differentiation, or a combination of both (i.e. a hybrid strategy).

Question 20

A risk of a focus strategy is that the needs of the customer within a narrow competitive segment may become more similar to those needs of customers in the whole market.

Accepted Answer

This is true because over time, the needs and preferences of customers in a narrow competitive segment may change and become more similar to those of the broader market, making it difficult for companies to maintain their focus strategy.

Quiz 4: Business-Level Strategy

Walmart's actions of becoming more upscale with the intent of taking sales away from Target provided an opening for competitors such as Amazon and Family Dollar to better compete on the basis of price and attract some of Walmart's customer.

Flexible manufacturing systems,information networks,and total quality management are three techniques that make it possible for firms to implement the focused differentiation strategy.

In general,firms can be most effective if they develop business-level strategies that will serve the needs of the "typical customer" in the industry.

A risk of the differentiation strategy is that the firm's means of differentiation may eventually not provide value for which customers are willing to pay.

A new generation of lunch trucks in cities such as New York,San Francisco,and Los Angeles serving high-end fare such as hamburgers made from grassfed cattle,escargot,and crème brulee illustrate the focus cost leadership strategy.

A firm's core strategy is its______strategy.

The value-creating activities associated with the cost leadership strategy and differentiation strategy are the same.

The differentiation strategy is effective for products that are expensive,luxury consumer goods. It is not effective for common,inexpensive products such as doughnuts.

Unlike a cost leadership and a differentiation strategy,both focus strategies are less dependent on the completion of various value chain and support activities in order to compete in a superior manner.

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in

Because of its focus on innovation and quality manufacturing,Total Quality Management is not useful for firms that follow a cost leadership strategy.

Human resources and other support functions are not value-creating activities in the value chain; only the value chain activities create value.

A flexible manufacturing system is a computer-controlled process used to produce a variety of products in moderate,flexible quantities with minimal manual intervention.

Walmart's change in strategy to attract more upscale customers will likely succeed because cost leaders are good at differentiating.

Although it is a cost leader,IKEA also offers differentiated features that appeal to its target customers,including its unique furniture designs,in-store playrooms for children,wheelchairs for customer use,and extended hours.

Research shows that firms using a hybrid strategy (i.e.,integrated cost leadership/differentiation)often outperform firms using pure strategies ( i.e.,cost leadership or differentiation).

The activities in the value chains of companies using focus strategies are quite different than the activities in the value chains of companies using industry-wide business strategies.

The hazard of getting "stuck in the middle" applies to firms using any business strategy.

A risk of a focus strategy is that the needs of the customer within a narrow competitive segment may become more similar to those needs of customers in the whole market.

Quiz 4: Business-Level Strategy

Walmart's actions of becoming more upscale with the intent of taking sales away from Target provided an opening for competitors such as Amazon and Family Dollar to better compete on the basis of price and attract some of Walmart's customer.

Flexible manufacturing systems,information networks,and total quality management are three techniques that make it possible for firms to implement the focused differentiation strategy.

In general,firms can be most effective if they develop business-level strategies that will serve the needs of the "typical customer" in the industry.

A risk of the differentiation strategy is that the firm's means of differentiation may eventually not provide value for which customers are willing to pay.

A new generation of lunch trucks in cities such as New York,San Francisco,and Los Angeles serving high-end fare such as hamburgers made from grass­fed cattle,escargot,and crème brulee illustrate the focus cost leadership strategy.

A firm's core strategy is its______strategy.

The value-creating activities associated with the cost leadership strategy and differentiation strategy are the same.

The differentiation strategy is effective for products that are expensive,luxury consumer goods. It is not effective for common,inexpensive products such as doughnuts.

Unlike a cost leadership and a differentiation strategy,both focus strategies are less dependent on the completion of various value chain and support activities in order to compete in a superior manner.

One of the benefits of the integrated cost leadership/differentiation strategy is that it is less risky than either the cost leadership or differentiation strategies.

Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in

Because of its focus on innovation and quality manufacturing,Total Quality Management is not useful for firms that follow a cost leadership strategy.

Human resources and other support functions are not value-creating activities in the value chain; only the value chain activities create value.

A flexible manufacturing system is a computer-controlled process used to produce a variety of products in moderate,flexible quantities with minimal manual intervention.

Walmart's change in strategy to attract more upscale customers will likely succeed because cost leaders are good at differentiating.

Although it is a cost leader,IKEA also offers differentiated features that appeal to its target customers,including its unique furniture designs,in-store playrooms for children,wheelchairs for customer use,and extended hours.

Research shows that firms using a hybrid strategy (i.e.,integrated cost leadership/differentiation)often outperform firms using pure strategies ( i.e.,cost leadership or differentiation).

The activities in the value chains of companies using focus strategies are quite different than the activities in the value chains of companies using industry-wide business strategies.

The hazard of getting "stuck in the middle" applies to firms using any business strategy.

A risk of a focus strategy is that the needs of the customer within a narrow competitive segment may become more similar to those needs of customers in the whole market.

A new generation of lunch trucks in cities such as New York,San Francisco,and Los Angeles serving high-end fare such as hamburgers made from grassfed cattle,escargot,and crème brulee illustrate the focus cost leadership strategy.