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Strategic Management Exam 2 Assignments Questions & Answers(RATED A+)

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Chapter 5 - ANSWER... When Frank sells a pie to Jean instead of Sarah, the economic value created in society is lower because of the difference in - ANSWERconsumer surplus Frank the baker has been growing the number of pies he has been selling so much that he is now able to negotiate more fav...

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strategic management exam 2 assignments questions
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chapter 5 answer when frank sells a pie to j
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Strategic Management Exam 2
Assignments Questions &
Answers(RATED A+)

Chapter 5 - ANSWER...

When Frank sells a pie to Jean instead of Sarah, the economic value created in society is lower
because of the difference in - ANSWERconsumer surplus

Frank the baker has been growing the number of pies he has been selling so much that he is now
able to negotiate more favorable terms from his suppliers. This change is likely to impact -
ANSWERproducer surplus

Frank the baker has imported some specialty baking flour from Italy that is especially prized by Sarah.
Frank's use of this flour, in his transaction with Sarah, should impact the - ANSWERreservation price

What are the two ways a company can translate its low-cost advantage over rivals into attractive
profit performance? - ANSWEReither using its low-cost edge to underprice competitors and attract
price-sensitive buyers in large enough numbers to increase total profits or refraining from price
cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold

The strategic target of a best-cost provider is - ANSWERvalue-conscious buyers in a middle-market
range

Which strategic approach works best when price competition among rival sellers is vigorous, the
market is large, and there are few ways to achieve product differentiation? - ANSWERlow-cost
provider strategy

Vanguard has achieved a low-cost advantage over its rivals in the investment management industry
through which of the following? - ANSWERunderpricing rivals to attract price-sensitive buyers

Vanguard's low-cost advantage results primarily from its ability to do which of the following? -
ANSWERdo a better job than rivals of performing value chain activities cost efficiently

,Vanguard has been particularly effective in managing which of the following value chain cost drivers?
- ANSWEReconomies of scale, learning and experience, capacity utilization, communication systems,
and information technology

A low-cost provider strategy is appropriate for use in the investment management industry for all
except which of the following choices? - ANSWERconsumer buyers, who have significant power to
bargain down prices

In what way has Vanguard failed to some degree in the execution of its low-cost provider strategy? -
ANSWERVanguard has not failed in the execution of its low-cost provider strategy.

A company achieves low-cost leadership when it - ANSWERbecomes the industry's lowest-cost
provider rather than just being one of several competitors with comparatively low costs.

Firms focusing on operating a cost leadership strategy are most likely to develop their product or
service to emphasize the - ANSWERfunctional aspects

Mont Blanc uses a differentiation strategy that focuses on the social and emotional aspects of their
product to appeal to a specific consumer segment. Which of the following initiatives would most be
in keeping with their strategy? - ANSWERan engraving service for pen owners who may wish to will
their pens to loved ones

Which of the following would NOT be a reason for Bic to decide to compete in Mont Blanc's market?
- ANSWERBic is a large publicly traded company with significant financial resources.

What best-cost provider strategy would you be most unlikely to recommend for a small-sized
company entering a highly segmented market, each segment with a complex set of needs and
spending power? - ANSWERevolving the capabilities to simultaneously deliver lower cost and higher-
quality/differentiated features

Which of the following is not a route to achieving a differentiation-based competitive advantage? -
ANSWERseparating marketing from brand-building activities

Southwest Airlines' low-cost advantage results primarily from its ability to - ANSWERoutdo its rivals
in performing value chain activities cost efficiently.

, Hilton Hotels has diversified its lodging brands by adding Curio Collection, Tapestry Collection, and
Canopy by Hilton, properties that offer stylish, distinctive decors and personalized services that
appeal to young professionals seeking distinctive lodging alternatives. Managers can enhance the
differentiation of these new brands based on all of the following value drivers except -
ANSWERseeking out low-quality inputs.

A focused low-cost strategy based on low cost aims at - ANSWERsecuring a competitive advantage by
serving buyers in the target market niche at a lower cost than those of rival competitors

Chapter 6 - ANSWER...

The concept of blue-ocean strategies does not refer to - ANSWERpursuing offensive strategies that
involve a preemptive strike to secure an advantageous position in a mature market segment.

When is outsourcing not beneficial? - ANSWERwhen internal control over an activity is deemed
essential

The primary objective of deploying a defensive strategy is to - ANSWERlower the risk of being
attacked, to weaken the impact of any attack that occurs, and to influence challengers to aim their
efforts at other rivals.

Merger and acquisition strategies - ANSWERare often driven by such strategic objectives as to
expand a company's geographic coverage or extend its business into new product categories

Horizontal scope refers to the - ANSWERrange of product and service segments that a firm can serve
within its focal market.

Vertical integration does not involve - ANSWERexpanding a firm's range of product and service
segments within its product or service market.

Bumble, a digital dating site where women make the first move, specifically uses which strategic
weapon in its offensive arsenal? - ANSWERLaunching a preemptive strike to capture an industry's
limited resources or capture a rare opportunity

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