Deck 7: Business-Level Strategies

Question 1

To sustain competitive advantage, hospitality and tourism firms need to:

A) Establish an urban presence
B) Upgrade their products/services
C) Expand and grow
D) Establish a link between resources and capabilities and strategies.

Answer 1

D

Question 2

Distinct business level strategies emerge during this phase as firms tend to pursue cost leadership, differentiation or focus strategies.

A) Growth
B) Maturity.
C) Shakedown
D) Introductory

Answer 2

A

Question 3

Which of the following is NOT one of the three basic types of business level strategies?

A) Focus
B) Cost leadership
C) Adaptability
D) Differentiation

Answer 3

C

Question 4

Which statement is true regarding a cost leadership strategy?

A) Cost leadership determines a mandatory price for all competitors
B) It is a strategy that derives from maintaining a low cost position
C) It's target market is typically high end
D) It is often ineffective

Question 5

What strategy type results in loyal customers who are willing to pay a premium for the quality products and services offered by an organization?

A) Focus cost leadership strategy
B) Differentiation strategy
C) Cost leadership strategy
D) None of the above

Question 6

What information is used to develop a firms' strategy?

A) Market information and analysis
B) Blog posts
C) Twitter
D) Facebook

Question 7

Cost leadership, differentiation, and focus are examples of, what level of a strategy?

A) Executive
B) Legal
C) Customer
D) Generic Business

Question 8

What enables a firm to sustain the advantage during periods of a downturn?

A) Reducing employees
B) Buyers' loyalty
C) Increasing advertisements
D) None of the above

Question 9

What words best describe the following: "The evolution of a firm in an industry over a definite time period"?

A) Life cycle
B) Vision statement
C) External review
D) Internal review

Question 10

All firms in a given market that compete directly against one another is called a competitive advantage.

Question 11

Defining a firms' long and short-term goals and objectives will help a company create a strategy.

Question 12

Accessed-based positioning is when a firm attempts to segment the market and how the customer can be acquired differently.

Question 13

The maturity phase leads incumbents to reduce their investments in the markets they occupy in the industry.

Question 14

Competitive strategies define a firm's position in relation to its competitors in a given market.

Question 15

Competitive advantage is defined as the above-average profits a firm is able to generate from its business operations when compared to its competition or competitive set.

Question 16

A successful differentiating strategy is evidenced by loyal customers even during economic and seasonal downturns

Question 17

A focus strategy is broad in scope in terms of the market segment it is targeting and its product-service offerings.

Question 18

The company's brand name and good will that are able to create a global competitive advantage, are two types of intangible resources.

Question 19

Name the five phases of the industry life cycle

Question 20

Define cost leadership strategy

Question 21

Define differentiation strategy

Question 22

Define focus cost leadership strategy

Question 23

Define focus differentiation strategy and give examples

Question 24

Define competitive advantage and give examples