Question 1

Who targets a narrow market segment with customized products?

Accepted Answer

A focuser targets a narrow market segment with customized products, as opposed to a differentiator who focuses on unique features and benefits or an integrator who offers a range of products and services to meet diverse needs. A first mover is the first company to enter a new market or introduce a new product or service.

Question 2

An organization that initially brings a product innovation to the market is known as the ________.

Accepted Answer

The term "first mover" refers to an organization that is the first to introduce an innovative product or service to the market. This can give them a competitive advantage as they establish themselves as the leaders in the field and can capture a significant portion of the market share before any competitors enter.

Question 3

A company that competes by offering unique products that are widely valued by customers is following a ________.

Accepted Answer

A differentiation strategy is one in which a company offers unique and highly valued products or services to its customers, allowing it to stand out from its competitors. This strategy aims to create a perceived difference in the minds of customers, which can lead to increased customer loyalty and a competitive advantage.

Question 4

A cost leadership strategy requires a firm to ________.

Accepted Answer

A cost leadership strategy requires a firm to maintain the lowest cost structure in the industry, enabling it to offer lower prices than its competitors while still being profitable.

Question 5

In an organization, the single independent businesses which formulate their own competitive strategies are known as ________.

Accepted Answer

Strategic business units (SBUs) are independent businesses within an organization that formulate their own competitive strategies.

Question 6

Which of the following is an advantage of being a first mover?

Accepted Answer

Being a first mover provides the opportunity to establish and build customer relationships, which can lead to brand loyalty and a competitive advantage. However, there are risks and uncertainties associated with being a first mover, such as the direction of technology and market trends, and high development costs. Additionally, there may be financial and strategic risks involved in being the first to enter a market, as there may not be an established market yet.

Question 7

Managers should "milk" cash cows for as much as they can, limit any new investment in them, and use the large amounts of cash generated to invest in ________ and ________.

Accepted Answer

The correct strategy is to use the cash generated by cash cows to invest in stars (which have high market share in a rapidly growing market) and question marks (which have low market share in a rapidly growing market but have the potential to become stars). Dogs are products with low market share in a low growth market and are not a good investment.

Question 8

A ________ firm uses both online and traditional stand-alone locations.

Accepted Answer

Clicks-and-bricks is the term used for a firm that uses both online and traditional stand-alone locations. First mover is a term used to describe a company that is the first to enter a new market. Focuser is a firm that focuses on a specific market niche or segment. Brick-and-mortar refers to traditional physical store locations without an online presence.

Question 9

Which of the following strategies involves a cost advantage or a differentiation advantage in a narrow segment?

Accepted Answer

The focus strategy involves targeting a narrow segment of the market and either achieving a cost advantage or differentiation advantage in that segment. The other options - flexibility strategy, functional strategy, and leadership strategy - do not necessarily involve segment-focused advantages.

Question 10

Which of the following is a competitive force under the five forces model?

Accepted Answer

The threat of substitutes is considered a competitive force under the five forces model as it puts pressure on companies to differentiate their products and services and compete for customers. Past rivalry with competitors and vertical integration may also be competitive forces, but they are more specific to certain industries and not as universally applicable as the threat of substitutes. Predictable changes in the market are not considered a competitive force as they do not directly impact the competition among companies.

Question 11

________ should be sold off or liquidated as they have low market share and low growth potential.

Accepted Answer

Dogs refer to products or businesses with low market share and low growth potential. They often consume resources without generating substantial returns. As a result, it is best to sell them off or liquidate them to free up resources for other more profitable ventures.

Question 12

________ is the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision is not working.

Accepted Answer

Strategic flexibility refers to the ability to adapt quickly to changes in the external environment, which includes recognizing major changes and committing resources accordingly. It also involves recognizing when a strategic decision is not working and making necessary adjustments. Strategic apprenticeship refers to an individual's process of learning and developing strategic competencies through experience and mentorship. Strategic leadership refers to the ability to influence and guide an organization towards its goals through vision and effective management. Strategic acceptability refers to the degree to which a proposed strategic decision is acceptable to key stakeholders.

Question 13

An Internet-based knowledge management system that shortens customer response times would be an e-business technique that contributes to the competitive advantage of a ________.

Accepted Answer

A knowledge management system that shortens customer response times is a way for a company to differentiate itself from its competitors by providing superior customer service. It is not a specific cost-saving measure, nor is it necessarily targeting a specific market niche (focuser). "Brick" is not a relevant choice.

Question 14

Kiva Systems, manufacturer of robots used in flexible automation systems, demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.

Accepted Answer

The answer of Kiva Systems, manufacturer of robots used in...

Question 15

How can a cost leader use e-business to reduce costs?

Accepted Answer

By using Web-based inventory control systems, a cost leader can reduce storage costs through better management of inventory levels and ordering efficiency. This can help the company achieve lower overall costs and maintain its position as a cost leader. The other options mentioned are more focused on improving customer service and reducing response times, which may not directly impact cost reduction for the company.

Question 16

How can an organization develop strategic flexibility?

Accepted Answer

Developing strategic flexibility involves having multiple alternatives when making strategic decisions. This allows an organization to adapt to changes in the business environment and adjust its strategy accordingly. Thorough planning and monitoring past strategies are important, but alone they do not guarantee strategic flexibility. Depending solely on tried and tested perspectives from senior employees can hinder innovation and limit the organization's ability to adapt to change.

Question 17

Heavy investment in ________ will help take advantage of the market's growth and help maintain high market share.

Accepted Answer

Stars have high market share in a growing market, but also require heavy investment to maintain and potentially increase market share further. This investment can be in the form of marketing, research and development, or expanding production capacity to meet growing demand. By investing in stars, a company can capitalize on the growth of the market and maintain their competitive advantage.

Question 18

Functional-level strategy directly supports the ________.

Accepted Answer

Functional-level strategy directly supports the competitive strategy by focusing on specific functions within the organization to achieve competitive advantage.

Question 19

________ is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization.

Accepted Answer

The definition provided perfectly matches the concept of strategic leadership, which involves a set of skills and behaviors that allow individuals to navigate through uncertain and complex environments, and to guide their organization towards a desired future state. This includes the ability to anticipate trends and challenges, to think critically and creatively, to collaborate effectively with stakeholders, and to align resources and activities towards common goals. The other options do not fully capture this idea, as scientific management refers to a specific approach to organizational efficiency focused on standardization and control, strategic competence is not a widely recognized term in management literature, and strategic flexibility refers only to the adaptability of organizations to changing circumstances, rather than to the proactive creation of a vision and strategy.

Question 20

A firm that is "stuck in the middle" cannot develop ________.

Accepted Answer

"Stuck in the middle" refers to a firm that does not have a clear cost or differentiation advantage, and is therefore unable to effectively compete with either low-cost providers or differentiated firms. This makes it difficult for the firm to develop a clear strategy or approach that can lead to sustained success.

Quiz 9: Strategic Management