BSG Exam 3 || with 100% Correct Answers.
Strategic Offensive correct answers called for when a company spots opportunities to gain
profitable market share at its rival's expense or when a company has no choice but to try to
whittle away at a strong rival's competitive advantage
Blue Ocean Strategy correct answers offers growth in revenues and profits by discovering or
inventing new industry segments that create altogether new demand
Offensive Strategies correct answers sometimes a company's best strategic option is to seize the
initiative, go on the attack, and launch a strategic offensive to improve its market position
Principal Offensive Strategy Options correct answers 1. Offer an equally good or better product
at a lower price.
2. Leapfrog competitors by being first to market with next-generation products.
3. Pursue continuous product innovation to draw sales and market share away from less
innovative rivals.
4. Pursue disruptive product innovations to create new markets.
5. Adopt and improve on the good ideas of other companies (rivals or otherwise).
6. Use hit-and-run or guerrilla marketing tactics to grab market share from complacent or
distracted rivals.
7. Launch a preemptive strike to secure an industry's limited resources or capture a rare
opportunity
Defensive Strategies correct answers Can help protect a competitive advantage but rarely are the
basis for creating one
First Mover Advantages correct answers If market responds well to its initial move, the pioneer
will benefit from a monopoly position that enables it to recover its investment costs and make an
attractive profit
First Mover Disadvantages correct answers 1. When costs are high relative to the benefits
accrued and imitative followers can achieve similar benefits with far lower costs.
2. When an innovator's products are somewhat primitive and do not live up to a buyer
expectations
3. When rapid market evolution gives second movers the opening to leapfrog a first mover's
products with more attractive next-version products
4. When market uncertainties make it difficult to ascertain what will eventually succeed,
allowing late movers to wait until these needs are clarified
5. When customer loyalty to the pioneer is low and first mover's skills, know-how, what actions
are easily copied or even surpassed
Scope of the Firm correct answers refers to the range of activities that the form performs
internally, the breadth of its product and service offerings, the extent of its geographic market
presence, and its mix of businesses.
, Horizontal Scope correct answers the range of product and service segments that a firm serves
within its focal market
Vertical Scope correct answers the extent to which a firm's internal activities encompass the
range of activities that make up and industry's entire value chain system, from raw-material
production to final sales and service activities
Threat Analysis correct answers the awareness of close competitors and the kinds of actions they
make
Signaling correct answers the goal is to dissuade challengers from attacking at all or to divert
them to less threatening options
Organizational Structure correct answers formalized patterns of interaction that link tasks and
people, typically changes as the size and complexity of the company increases, a function of
company growth and diversification strategies
Simple Organizational Structure correct answers the owner makes decisions and controls
activities, most common form in which staff is an extension of the top executive
Functional Organizational Structure correct answers the major functions of the firm are grouped
internally, it recognizes that the owner is not skilled in all aspects, so owners hire specialists in
various functional areas
Multidivisional Structure correct answers a decentralized structure consisting of a set of
operating divisions organized along business, product, customer group, or geographic lines and
central corporate headquarters that allocates resources, provides support functions, and monitors
divisional activities
Matrix Organizational Structure correct answers a combination structure that overlays one type
of structure onto another type, with multiple reporting relationships. It is used to foster cross-unit
collaboration
Network Structure correct answers a configuration composed of a number of independent
organizations engaged in some common undertaking, with one firm typically taking on a more
central role
Boundryless Organizational Structure correct answers reflect organizations in which boundaries
are more permeable
Barrier Free Organizations correct answers differences are bridged so as to facilitate sharing and
cooperation
Modular Organizations correct answers non-vital functions are outsourced
Strategic Offensive correct answers called for when a company spots opportunities to gain
profitable market share at its rival's expense or when a company has no choice but to try to
whittle away at a strong rival's competitive advantage
Blue Ocean Strategy correct answers offers growth in revenues and profits by discovering or
inventing new industry segments that create altogether new demand
Offensive Strategies correct answers sometimes a company's best strategic option is to seize the
initiative, go on the attack, and launch a strategic offensive to improve its market position
Principal Offensive Strategy Options correct answers 1. Offer an equally good or better product
at a lower price.
2. Leapfrog competitors by being first to market with next-generation products.
3. Pursue continuous product innovation to draw sales and market share away from less
innovative rivals.
4. Pursue disruptive product innovations to create new markets.
5. Adopt and improve on the good ideas of other companies (rivals or otherwise).
6. Use hit-and-run or guerrilla marketing tactics to grab market share from complacent or
distracted rivals.
7. Launch a preemptive strike to secure an industry's limited resources or capture a rare
opportunity
Defensive Strategies correct answers Can help protect a competitive advantage but rarely are the
basis for creating one
First Mover Advantages correct answers If market responds well to its initial move, the pioneer
will benefit from a monopoly position that enables it to recover its investment costs and make an
attractive profit
First Mover Disadvantages correct answers 1. When costs are high relative to the benefits
accrued and imitative followers can achieve similar benefits with far lower costs.
2. When an innovator's products are somewhat primitive and do not live up to a buyer
expectations
3. When rapid market evolution gives second movers the opening to leapfrog a first mover's
products with more attractive next-version products
4. When market uncertainties make it difficult to ascertain what will eventually succeed,
allowing late movers to wait until these needs are clarified
5. When customer loyalty to the pioneer is low and first mover's skills, know-how, what actions
are easily copied or even surpassed
Scope of the Firm correct answers refers to the range of activities that the form performs
internally, the breadth of its product and service offerings, the extent of its geographic market
presence, and its mix of businesses.
, Horizontal Scope correct answers the range of product and service segments that a firm serves
within its focal market
Vertical Scope correct answers the extent to which a firm's internal activities encompass the
range of activities that make up and industry's entire value chain system, from raw-material
production to final sales and service activities
Threat Analysis correct answers the awareness of close competitors and the kinds of actions they
make
Signaling correct answers the goal is to dissuade challengers from attacking at all or to divert
them to less threatening options
Organizational Structure correct answers formalized patterns of interaction that link tasks and
people, typically changes as the size and complexity of the company increases, a function of
company growth and diversification strategies
Simple Organizational Structure correct answers the owner makes decisions and controls
activities, most common form in which staff is an extension of the top executive
Functional Organizational Structure correct answers the major functions of the firm are grouped
internally, it recognizes that the owner is not skilled in all aspects, so owners hire specialists in
various functional areas
Multidivisional Structure correct answers a decentralized structure consisting of a set of
operating divisions organized along business, product, customer group, or geographic lines and
central corporate headquarters that allocates resources, provides support functions, and monitors
divisional activities
Matrix Organizational Structure correct answers a combination structure that overlays one type
of structure onto another type, with multiple reporting relationships. It is used to foster cross-unit
collaboration
Network Structure correct answers a configuration composed of a number of independent
organizations engaged in some common undertaking, with one firm typically taking on a more
central role
Boundryless Organizational Structure correct answers reflect organizations in which boundaries
are more permeable
Barrier Free Organizations correct answers differences are bridged so as to facilitate sharing and
cooperation
Modular Organizations correct answers non-vital functions are outsourced
