Chap 8: Business Level Strategy

Question 1

This strategy is formulated at the middle level management with strong and close coordination with the corporate and functional levels

Answer 1

Business strategy

Question 2

Is designed to outperform or battle against all competitors

Answer 2

Competitive strategy

Question 3

Implies a wider geographic area, several types of buyers, different product lines, and complex distribution channels

Answer 3

Broad market

Question 4

A business level strategy that enables a company to produce a comparatively similar product, more efficiently than its competitors

Answer 4

Lower cost strategy

Question 5

Can be adopted by companies that aim to serve a broad target market with low cost products or services

Answer 5

Cost leadership

Question 6

A strategy that is more appropriate to employ when a companies target market is narrow, and it aims to compete in cost

Answer 6

Cost focus

Question 7

A company intends to compete using the uniqueness of its product from the perspective of the customers, relative to its value, quality, features, and even the services provided after the sale

Answer 7

Differentiation strategy

Question 8

Can be in the form of packaging, features, design, technology, brand image, innovation, and customer service

Answer 8

Differentiation

Question 9

Is strategy designed the serve a wider target market and achieve competitive advantage by offering products which are unique relative to the quality and value from the customers’ view

Answer 9

Differentiation

Question 10

A competitive business strategy that focuses on the needs of a narrow market by providing a product or service that is differentiated from competitors

Answer 10

Differentiation focus

Question 11

It aims to achieve competitive advantage by working with other companies

Answer 11

Cooperative strategy

Question 12

Exists when competitors, expressly or impliedly agree to reduce their production, so that the prices of goods produce will increase or remain high

Answer 12

Collusion

Question 13

Cooperating companies conspire through direct communication and negotiation

Answer 13

Explicit collusion

Question 14

Cooperating companies conspire indirectly through informal means

Answer 14

Tacit collusion

Question 15

A partnership established by similar companies in an industry, who put together their resources, but not their core competencies for a particular project that is too expensive for one company to undertake

Answer 15

Mutual service consortium

Question 16

Similar participating companies, temporarily establish an independent separate unit

Answer 16

Joint venture

Question 17

Happens when a company in a particular country grants rights to another company in another country to produce or sell the products of the former

Answer 17

Licensing

Question 18

Is established when a company makes a long term agreement with its key supplier or distributor for mutual advantage

Answer 18

Value chain partnership

Question 19

Are designed to provide overall direction of a company

Answer 19

Corporate level strategies

Question 20

Illustrates that a strategic environmental analysis and evaluation must be conducted first before a strategy, whether planned a reactive, is formulated

Answer 20

Strategic management model

Question 21

Competing in the market location of a competitor

Answer 21

Offensive tactic

Question 22

Competing in the current market location

Answer 22

Defensive tactic

Question 23

A company attacks, its competitor head to head from pricing down to distribution

Answer 23

Frontal assault

Question 24

A company attacks the market where its competitor is weak

Answer 24

Flanking maneuver

Question 25

An offensive attack characterized by the use of small intermittent attacks on the market, held by a competitor

Answer 25

Guerrilla warfare

Question 26

This offensive attack redefines the market, where a company offers a new product that makes its competitors product outdated

Answer 26

Bypass attack

Question 27

When the entry barriers are increased, considerably in new entrance is discouraged to enter a market

Answer 27

Increase entry barriers

Question 28

Expected and trends are discouraged to join a market or industry when they perceive aggressive retaliation from existing companies

Answer 28

Increase the expected, aggressive retaliation

Question 29

Possible new entrance are discouraged to join when they are expecting a low profit level in the market

Answer 29

Lower the inducement for possible attacks