Question 1

The ____ strategy aims at selling a standardized product that appeals to the "average" customer in a broad market.

Accepted Answer

The low-cost strategy aims at reducing production and distribution costs, resulting in selling products or services at lower prices than competitors while maintaining acceptable quality levels. This approach targets a broad market by making the product affordable to the average customer, who tends to be price-sensitive rather than quality or brand loyal. In contrast, the focused strategy targets a narrow segment of customers with specific needs and preferences, while the differentiation strategy focuses on creating unique and valuable products or services that justify higher prices. The focused differentiation strategy combines both approaches by serving a select group of customers with differentiated offerings.

Question 2

Span of control

Accepted Answer

Span of control refers to the number of people reporting directly to a person. It is used to determine the level of hierarchy in an organization and helps to understand the managerial and operational responsibilities of individuals within the organization. The wider the span of control, the more subordinates report to a single manager, while a narrower span of control means there are fewer subordinates for each manager.

Question 3

The strategy that is based on providing customers with something unique that makes the organization's product or service distinctive from its competition is referred to as:

Accepted Answer

The strategy of differentiation is focused on offering unique features or characteristics that distinguish an organization's product or service from its competitors. This can be achieved through product design, quality, customer service, or other means. By standing out from the competition, the organization can attract customers who are looking for something different or better, and potentially command a premium price for its offering. The other options - discount, focused, and low-cost - are not strategies based on providing unique value, but rather involve competing on price or targeting specific market segments.

Question 4

Starbucks coffee uses a design.

Accepted Answer

The answer of Starbucks coffee uses a design.
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Question 5

Organizations that have successfully used a low-cost strategy include all of the following except:

Accepted Answer

Macy's is not known for using a low-cost strategy. The other three companies listed have all been successful in implementing a low-cost strategy in their respective industries.

Question 6

When organizations overdo product differentiation,it places a burden on which area?

Accepted Answer

When organizations overdo product differentiation, it places a burden on both research and development and financial resources. Research and development must invest more time and resources into creating unique products, while financial resources are strained to fund these additional efforts. This can lead to increased costs and decreased profitability.

Question 7

The greatest disadvantage of the focused strategy is

Accepted Answer

The greatest disadvantage of the focused strategy is that the customer niche may shift toward a broader market. This means that the company may lose their competitive advantage and fail to keep up with the changing needs of their customers, resulting in a lack of profitability and sustainability in the long term.

Question 8

Dollar General and Wal-Mart,discount stores,likely use what type of business strategy?

Accepted Answer

Dollar General and Wal-Mart are both known for their low prices and cost-cutting measures. This indicates they likely use a low-cost business strategy.

Question 9

All of the following are important to organizations following the focused strategy except:

Accepted Answer

The focused strategy emphasizes specialization and targeting a particular market or niche, rather than trying to achieve economies of scale. Therefore, achieving economies of scale is not as important for organizations following this strategy compared to those pursuing a cost leadership or differentiation strategy. Instead, the focus is on attracting and keeping the target group of buyers by offering products or services that are specialized and unique in ways that other organizations cannot match.

Question 10

Which of the following strategies is (are)designed to target industry wide markets?

Accepted Answer

Both low-cost and differentiation strategies are designed to target industry wide markets. In a low-cost strategy, the company aims to offer products or services at a lower price than competitors while maintaining profitability. This can attract a large customer base across the industry. In a differentiation strategy, the company aims to differentiate their products or services from that of competitors in a way that appeals to a broad customer base in the industry. Both strategies are intended to compete in a larger industry, rather than just targeting a specific niche.

Question 11

The concept of ____ refers to the idea that companies need to distinguish and position themselves differently from their competitors in order to capitalize on their unique capabilities by building and sustaining a competitive advantage.

Accepted Answer

Strategic choice refers to the process of selecting and implementing strategies that help a company achieve a competitive advantage. This involves analyzing the company's unique capabilities and resources, as well as the opportunities and threats in the external environment, in order to position the company differently from its competitors. By doing so, the company can create value for its customers and achieve long-term success in the marketplace.

Question 12

All of the following are among the ways in which an organization applies the differentiation strategy to provide the customer with something that is unique and distinctive from its competition except:

Accepted Answer

Undercutting competitor's prices does not align with the differentiation strategy, which focuses on providing a unique and distinctive product that customers are willing to pay a premium for. The other options - creating a higher quality product, designing a technically superior product, and developing a special appeal for the product - all involve offering something unique to the customer that sets the organization apart from its competitors.

Question 13

Which of the following is not one of the three underlying business strategies that appear to be essential in developing competitive advantage for a company?

Accepted Answer

The three underlying business strategies that appear to be essential in developing competitive advantage are low-cost, differentiation, and focused. There is no mention of "network" as one of the essential strategies.

Question 14

The strategy that is based on an organization's ability to provide a product or service at a lower cost than its rivals is referred to as:

Accepted Answer

The strategy that is based on offering products or services at a lower cost than its rivals is known as a low-cost strategy. This can be achieved by implementing cost-cutting measures in the value chain, such as optimizing production processes or negotiating lower supplier costs. By providing the same or similar products at a lower price, a company can gain a competitive advantage and appeal to price-sensitive consumers. This approach is different from differentiation, which is based on creating unique products or services that stand out from the competition.

Question 15

When one department or team must complete certain tasks before one or more other departments or teams can perform their tasks,and those tasks are arranged in a predetermined order or flow,it can be said that ____ interdependence exists between the two groups.

Accepted Answer

Sequential interdependence exists when tasks are arranged in a predetermined order or flow, and one department or team must complete certain tasks before one or more other departments or teams can perform their tasks. This type of interdependence is common in manufacturing processes, where tasks must be completed in a specific order to ensure quality and efficiency. Reciprocal interdependence involves mutual reliance between departments, where each department depends on the other to perform its tasks, and is common in project-based work. Network interdependence involves interactions between multiple departments or teams, and is common in complex projects. Pooled interdependence involves independent work that is combined to create a final product or outcome, such as in a software development project with multiple teams working on different modules.

Question 16

By driving the organization to be more productive,____ can influence the design of the organization.

Accepted Answer

Competitors can influence the design of the organization by challenging the organization to be more productive, efficient and innovative in order to stay ahead in the market. As a result, the organization may have to adapt its design to become more agile, flexible and responsive to change. This may involve changes in the structure, processes, systems, technology and culture of the organization.

Question 17

A mechanistic organization is characterized by:

Accepted Answer

A mechanistic organization is characterized by centralization of decision making, narrowly defined job responsibilities, and reliance on formal rules and regulations. Therefore, option C is the best choice as it includes all of these characteristics.

Question 18

A(n)____ organization is designed so that individuals and functions will behave in predictable ways.

Accepted Answer

Mechanistic organizations are characterized by formalized procedures, centralized decision-making, and a hierarchical structure that emphasizes authority and control. This type of organization is designed to ensure that individuals and functions behave in predictable ways, with a focus on efficiency and stability.

Question 19

The risks involved in using a low-cost strategy include all of the following except:

Accepted Answer

Attaining significant economies of scale is actually a potential benefit of using a low-cost strategy, not a risk. The other options listed (B, C, and D) are all valid risks of using a low-cost strategy.

Question 20

All of the following strategies target industry wide markets except:

Accepted Answer

Focused strategies target a specific segment of the market rather than the entire market, distinguishing them from differentiation and low-cost strategies, which aim at industry-wide markets.

Quiz 15: Organization Design