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BUSMHR 4490H EXAM 2 2024/2025 WITH 100% ACCURATE SOLUTIONS
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BUSMHR 4490H EXAM 2 2024/2025 WITH 100% ACCURATE SOLUTIONS
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BUSMHR 4490H EXAM 2 2024/2025 WITH100% ACCURATE SOLUTIONS
The goal of a strategic position is to create the largest gap possible
between the ________ that a firm creates through its offerings and the
________ required to create these offerings.
a. value; cost
b. marketing; innovation process
c. market share; defensive strategy
d. gap; ROIC - Precise Answer ✔✔a. value; cost
A ________ primarily details the goal-directed actions managers take in
their quest for competitive advantage when competing in a single
product market.
a. business-level strategy
b. code of ethics
c. mission statement
d. functional-level strategy - Precise Answer ✔✔a. business-level
strategy
In a focused cost-leadership strategy, a firm
,a. caters to the segment of the market that is least cost sensitive.
b. provides high-priced products for many different segments of the
mass market.
c. delivers low-cost products and services to a specific, narrow part of
the market.
d. focuses on reducing the economic value created to drive down costs. -
Precise Answer ✔✔c. delivers low-cost products and services to a
specific, narrow part of the market.
Skin Science Inc. produces a line of skincare products that it sells at
higher prices than its competitors. The company has a large and loyal
customer base due to its unique formulations, high-quality ingredients,
and superior customer service. Which of the following generic business
strategies has Skin Science adopted in this scenario?
a. cost-leadership
b. differentiation
c. market penetration
d. product diversification - Precise Answer ✔✔b. differentiation
Five Star Inc. is a knife manufacturer known for its high-quality steel
chef's knives, and it follows a differentiation strategy. In this scenario,
Five Star Inc. should ideally compare its strategic position with a
a. knife company that sells refurbished steel knives.
b. knife retailer that sells high-end, premium knives.
,c. knife maker that manufactures low-priced knives.
d. knife maker that produces high-end chef's knives. - Precise Answer
✔✔d. knife maker that produces high-end chef's knives.
Value drivers contribute to a firm's competitive advantage only if
a. the increase in value creation exceeds the increase in costs.
b. they can shrink the firm's value gap.
c. they can restrict the firm from claiming a premium price for its
products.
d. the decrease in perceived value leads to an increase in costs. - Precise
Answer ✔✔a. the increase in value creation exceeds the increase in
costs.
Activate Equipment Inc. has been successful at differentiating itself
from competitors by claiming a premium price for its treadmills based
on integrated HD displays, workout tracking capabilities, and advanced
technology. In this scenario, which of the following is the key value
driver?
a. product features
b. economies of scale
c. low-cost input factors
d. customer service - Precise Answer ✔✔a. product features
, Golden Soles has been successful at differentiating itself from
competitors by claiming a premium price for its athletic footwear based
on superior design and high-quality materials. In this scenario, which of
the following is the key value driver?
a. economies of scale
b. low-cost input factors
c. product features
d. premium prices - Precise Answer ✔✔c. product features
Mohawk is a leader in sustainable and innovative carpeting and
floorings, as evidenced by its signature product, the world's first organic
cotton carpet. Its product is unique and has appealing customer
attributes. If Mohawk's raw material costs increased by 12 percent this
year, what would be the likely outcome?
a. Mohawk would lower profit margins to absorb this cost increase.
b. The company would launch an all-out effort to reduce other costs by
12 percent.
c. Mohawk would pass a major portion of this increase along as a price
increase to its customers.
d. Mohawk would seek lower-cost materials, even if it meant losing the
carbon-neutral label on the product. - Precise Answer ✔✔c. Mohawk
would pass a major portion of this increase along as a price increase to
its customers.
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