Chapter 05 The Five Generic Competitive Strategies Answer Key
Multiple Choice Questions
1.
A company’s competitive strategy should
2.
Which of the following is NOT one of the five generic competitive strategies?
3.
While there are many routes to competitive advantage, the two biggest factors that distinguish one
competitive strategy from another are
4.
Whatever strategic approach is adopted by a company to deliver value, it nearly always requires
5.
The biggest and most important differences among the competitive strategies of different companies
boil down to
6.
A boutique hotel chain provides upscale rooms and superior customer service at value prices. What
strategy is the hotelier using to gain competitive advantage?
7.
The generic types of competitive strategies include
8.
Which of the following generic types of competitive strategies is typically the “best” strategy for a
company to employ?
9.
The objective of a competitive strategy is to
10.
A low-cost leader’s basis for competitive advantage is
11.
In order to be successful with a low-cost leadership strategy, company managers have to
12.
Low-cost leaders who have the lowest industry costs are likely to
13.
How valuable a low-cost leader’s cost advantage is depends on
14.
A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by
15.
Domino’s Pizza has a well-known slogan: “We’ll deliver in 30 minutes or less, or it’s free!” With it what
has the pizza maker achieved?
16.
The major avenues for achieving a cost advantage over rivals include
17.
Achieving a sure cost advantage over rivals entails
18.
A fast-food restaurant stocks bread, meat, sauces, and other main ingredients, but does not assemble and
cook its burgers and sandwiches until a customer places an order. Which cost driver is the restaurant
efficiently using to cut costs?
19.
Which of the following is NOT an action that a company should take to perform value chain activities
more cost-effectively?
20.
Cost-efficient management of a company’s overall value chain activities requires that management
21.
Examples of important cost drivers in a company’s value chain do NOT include
22.
The culture of a company can be a cost-efficient value chain activity because it can
Topic: Value Chain
23.
Which of the following is NOT one of the ways that a non-capital-intensive company can achieve a cost
advantage by revamping its value chain?
24.
An example of how companies can revamp their value chain to reduce costs is to
25.
Which of the following companies is using cost drivers effectively to manage value chain activities cost
efficiently?
26.
A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is
true?
27.
A competitive strategy of striving to be the low-cost provider is particularly attractive when
28.
Being the overall low-cost provider in an industry has the attractive advantage of
29.
A competitive strategy to be the low-cost provider in an industry works well when
30.
A low-cost leadership strategy becomes competitively powerful when
31.
In which of the following circumstances is a strategy to be the industry’s overall low-cost provider NOT
particularly well-matched to the market situation?
32.
A strategy to be the industry’s overall low-cost provider tends to be more appealing than a
differentiation or best-cost or focus/market niche strategy when
33.
Which of the following is NOT one of the pitfalls of a low-cost provider strategy?
34.
Which of the following is one of the pitfalls of a low-cost provider strategy?
35.
Which of the following companies is NOT the lowest-cost provider in its industry?
36.
Which of the following is NOT a value driver of a broad differentiation strategy?
37.
Companies pursue closer coordination and collaboration with channel suppliers to better address
customer needs in order to
38.
The essence of a broad differentiation strategy is to
39.
A company attempting to be successful with a broad differentiation strategy has to
40.
Successful broad differentiation allows a firm to
41.
Which of the following is NOT true of a company that succeeds in differentiating its product offering
from those of its rivals?
42.
A broad differentiation strategy improves profitability when