Question 1

Explain the product differentiation and the cost leadership strategies.

Accepted Answer

Product differentiation is an organization's ability to offer products or services perceived by its customers to be superior and unique relative to the products or services of its competitors.
Cost leadership is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements,elimination of waste,and tight cost control.

Question 2

________ is an organization's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors.
A)Strategy
B)Product differentiation
C)Cost leadership
D)The balanced scorecard
E)Cost differentiation

Accepted Answer

Product differentiation refers to an organization's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors. This can be achieved through various methods such as design, quality, features, and customer service.

Question 3

Answer the following questions using the information below:
Stewart Corporation plans to grow by offering a sound system,the SS3000,that is superior and unique from the competition.Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy.
-Stewart's strategy is
A)product differentiation.
B)downsizing.
C)reengineering.
D)cost leadership.
E)salability.

Accepted Answer

Stewart Corporation's plan to grow by offering a unique and superior sound system that stays ahead of the competition through technological innovation indicates a product differentiation strategy.

Question 4

________ is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost,quality,service,speed,and customer satisfaction.
A)Strategy
B)Customer perspective
C)Learning and growth perspective
D)Reengineering
E)Product differentiation

Accepted Answer

Reengineering is the process of fundamentally rethinking and redesigning business processes to achieve improvements in critical measures of performance such as cost, quality, service, speed, and customer satisfaction. It involves a complete overhaul of existing processes and is often used to achieve radical improvements in performance.

Question 5

Reengineering is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost,quality,service,speed,and customer satisfaction.

Accepted Answer

Reengineering involves a complete overhaul of processes to achieve significant improvements in key performance metrics.

Question 6

Which of the following is NOT a force that shapes an organization's competitive environment?
A)competitors
B)equivalent products
C)bargaining power of customers
D)government regulation
E)potential entrants into the market

Accepted Answer

The answer of Which of the following is NOT a...

Question 7

To achieve a cost leadership strategy companies may need to improve their internal production processes to increase yield.

Accepted Answer

Improving internal production processes can lead to increased efficiency and lower costs, which is important for implementing a cost leadership strategy.

Question 8

________ has/have been classified in many ways,but what is common is to set the business within its external environment.
A)Strategies
B)Planning
C)Competitors
D)Bargaining power of input suppliers
E)Cost Leadership

Accepted Answer

The answer of ________ has/have been classified in many ways,but...

Question 9

Strategies have been classified in many different ways,but what is common is to set the business within its external environment.

Accepted Answer

This is true. Strategies are often developed keeping in mind the external environment of the business, including competitors, customers, economic factors, and technological advancements. Understanding the external environment helps in developing effective strategies that meet the needs of the market and achieve business objectives.

Question 10

Successful reengineering efforts generally involve changing the roles and responsibilities of employees.

Accepted Answer

Reengineering often involves restructuring of organizational processes, which in turn requires changes to the roles and responsibilities of employees.

Question 11

________ is an organization's ability to achieve low costs relative to competitors through productivity and efficiency improvements,elimination of waste,and tight cost control.
A)Strategy
B)Product differentiation
C)Cost leadership
D)The balanced scorecard
E)Product leadership

Accepted Answer

Cost leadership refers to an organization's ability to achieve low costs relative to competitors. This is typically done by improving productivity and efficiency, eliminating waste, and implementing tight cost controls. Product differentiation (B) refers to an organization's ability to offer unique and superior products or services to customers. The balanced scorecard (D) is a strategic management tool used to track and measure an organization's performance against strategic goals and objectives. Product leadership (E) refers to an organization's ability to continuously innovate and improve its products or services to maintain a competitive advantage. Therefore, the best choice for the given question is C.

Question 12

Reengineering benefits are most significant when they focus on one business function rather than crossing functional lines of the business process.

Accepted Answer

The answer of Reengineering benefits are most significant when they...

Question 13

According to Michael Porter which of the following is a force that shapes an organization's competitive environment?
A)investors
B)potential entrants into the market
C)lenders
D)research and development
E)bankers

Accepted Answer

Potential entrants into the market are one of the five forces that shape an organization's competitive environment according to Michael Porter's Five Forces model. The other four forces are the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry. None of the other options listed are part of Porter's Five Forces model.

Question 14

Identify and explain Porter's Five Forces model.

Accepted Answer

The answer of Identify and explain Porter's Five Forces model....

Question 15

Bosely Corporation is reviewing its business strategy.The first step for Bosely is to evaluate the competitive environment.You have been hired to help the company go through the strategy formulation process.
Required:
To perform the analysis of competitive rivalry,what areas should Bosely focus on and give at least one example of how Bosely can effectively deal with each area.

Accepted Answer

The answer of Bosely Corporation is reviewing its business strategy.The...

Question 16

In general,profit potential increases with greater competition,stronger potential entrants,products that are similar,and tougher customers and suppliers.

Accepted Answer

Profit potential actually decreases with greater competition, stronger potential entrants, products that are similar, and tougher customers and suppliers. These factors increase the risk of competitors taking away market share and driving down prices, thus reducing profits.

Question 17

Strategy requires integration of product and process development.

Accepted Answer

Product development and process development are interdependent and must be integrated to achieve strategic goals. Product development determines what types of products to create, while process development determines how they will be produced efficiently and effectively.

Question 18

An organization that is using the product differentiation approach would
A)focus on tight cost control.
B)carefully cultivate its brands.
C)provide products that are similar to competitors.
D)invest more in productivity enhancements than R&D.
E)recognize that demand is more price sensitive than if using a cost leadership approach.

Accepted Answer

The product differentiation approach involves creating a unique product that is perceived as superior or distinctive by customers, often through branding, design, or quality. Therefore, an organization using this approach would focus on carefully cultivating its brands to set its products apart from competitors. Tight cost control and providing similar products to competitors are more associated with a cost leadership approach. Investing in productivity enhancements rather than R&D may also be more typical of a cost leadership strategy. Finally, product differentiation is often associated with less price sensitivity, as customers may be willing to pay a premium for unique or higher quality products.

Question 19

Cost leadership is an organization's ability to offer products or services that are perceived by its own customers as being superior and unique relative to those of its competitors.

Accepted Answer

Cost leadership is an organization's ability to offer products or services at a lower cost than its competitors, not necessarily superior or unique.

Question 20

An organization that is using the cost leadership approach would
A)incur costs for innovative R&D.
B)provide products at a higher price but with lower costs than its competitors.
C)focus on productivity through efficiency improvements.
D)bring products to market rapidly.
E)use a cost plus rather than a target pricing policy.

Accepted Answer

An organization using the cost leadership approach aims to provide the product or service at the lowest cost possible while maintaining an acceptable level of quality. Therefore, the organization focuses on productivity and efficiency improvements to reduce costs. Incurring costs for innovative R&D (A) or bringing products to market rapidly (D) may increase costs and likely result in higher prices for the product. Providing products at a higher price but with lower costs than its competitors (B) is not representative of a cost leadership approach. Using a cost plus pricing policy (E) may not necessarily result in the lowest price for the product.

Quiz 13: Strategy,balanced Scorecard,and Profitability Analysis

Explain the product differentiation and the cost leadership strategies.

________ is an organization's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors.

________ is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost,quality,service,speed,and customer satisfaction.

Reengineering is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost,quality,service,speed,and customer satisfaction.

Which of the following is NOT a force that shapes an organization's competitive environment?

To achieve a cost leadership strategy companies may need to improve their internal production processes to increase yield.

________ has/have been classified in many ways,but what is common is to set the business within its external environment.

Strategies have been classified in many different ways,but what is common is to set the business within its external environment.

Successful reengineering efforts generally involve changing the roles and responsibilities of employees.

________ is an organization's ability to achieve low costs relative to competitors through productivity and efficiency improvements,elimination of waste,and tight cost control.

Reengineering benefits are most significant when they focus on one business function rather than crossing functional lines of the business process.

According to Michael Porter which of the following is a force that shapes an organization's competitive environment?

Identify and explain Porter's Five Forces model.

In general,profit potential increases with greater competition,stronger potential entrants,products that are similar,and tougher customers and suppliers.

Strategy requires integration of product and process development.

An organization that is using the product differentiation approach would

Cost leadership is an organization's ability to offer products or services that are perceived by its own customers as being superior and unique relative to those of its competitors.

An organization that is using the cost leadership approach would