Exam (elaborations)
Strategic Management Chapter 4
- Module
- Strategic Management
- Institution
- Birkbeck, University Of London (BBK)
Strategic Management ch04 test bank
[Show more]
1 review
By: tommypatsfan12 • 3 year ago
Content preview
Chapter 4—Business-Level StrategyTRUE/FALSE
1. As shown in the Chapter 4 Opening Case, because of its lower overhead cost structure, Acer is able to
price its products below those of its competitors.
ANS: T PTS: 1 DIF: Easy REF: 99
OBJ: 04-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Knowledge of general business functions
2. According to the Chapter 4 Opening Case, the decision to sell through wholesalers and to manufacture
all product in-house are examples of actions taken by Acer to reduce its costs.
ANS: F PTS: 1 DIF: Medium REF: 99
OBJ: 04-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Knowledge of general business functions
3. According to the Chapter 4 Opening Case, Acer’s strategy of running a business with lower costs is
good when markets are not growing (as occurred during the global recession) but even better when
markets are growing.
ANS: F PTS: 1 DIF: Hard REF: 99
OBJ: 04-01 TYPE: application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Knowledge of general business functions
4. The goal of business-level strategy is to earn above-average returns.
ANS: T PTS: 1 DIF: Medium REF: 100
OBJ: 04-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Knowledge of general business functions
5. A business-level strategy is an integrated and coordinated set of commitments and actions designed to
exploit core competencies and gain a competitive advantage in specific product markets.
ANS: T PTS: 1 DIF: Medium REF: 100
OBJ: 04-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Knowledge of general business functions
6. Every firm uses all levels of strategy: corporate, acquisition and restructuring, international and
cooperative.
ANS: F PTS: 1 DIF: Easy REF: 100
OBJ: 04-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Knowledge of general business functions
, 7. Business-level strategy can be thought of as the firm’s core strategy.
ANS: T PTS: 1 DIF: Medium REF: 100
OBJ: 04-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Managing strategy & innovation
8. When selecting a business level strategy, the firm determines who will be served, what customer needs
will be satisfied, and how those needs will be satisfied.
ANS: T PTS: 1 DIF: Easy REF: 100-101
OBJ: 04-01 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Managing strategy & innovation
9. Global competition has increased the options for consumers and has made it more imperative for firms
to identify the needs of customers in order to earn above-average returns.
ANS: T PTS: 1 DIF: Medium REF: 101
OBJ: 04-01 TYPE: knowledge
NOT: AACSB: Multicultural & Diversity | Management: Strategy | Dierdorff & Rubin: Managing
strategy & innovation
10. Effective use of the generic business strategies allows the firm to favorably position itself relative to
the five forces.
ANS: T PTS: 1 DIF: Easy REF: 101
OBJ: 04-01 TYPE: comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Managing strategy & innovation
11. Almost any identifiable human or organizational characteristic can be used to subdivide a market into
segments that differ from one another on a given characteristic.
ANS: T PTS: 1 DIF: Easy REF: 103
OBJ: 04-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff &
Rubin: Managing strategy & innovation
12. The generalized forms of value that goods and services provide are either lower cost with acceptable
features or highly differentiated features with acceptable cost.
ANS: F PTS: 1 DIF: Easy REF: 104
OBJ: 04-02 TYPE: knowledge
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff
& Rubin: Managing strategy & innovation
13. An English professor spends her summers writing low-brow romance novels that sell directly to
paperback. She writes under a fictional name because she is embarrassed to admit to her colleagues
and students how she earns the extra money for foreign vacations. The professor is correct in her
concern that she is serving customer needs that are objectively inferior and bad.
ANS: F PTS: 1 DIF: Hard REF: 104
OBJ: 04-02 TYPE: application
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller smith2324. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £5.56. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now