Chapter 4

Question 1

Business-level strategy

Answer 1

an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets

Question 2

Cost leadership strategy

Answer 2

an integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors

Question 3

Differentiation strategy

Answer 3

an integrated set of actions taken to produce goods or services (at an acceptable cost) that customers perceive as being different ways that are important to them

Question 4

Focus strategy

Answer 4

– an integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment

Question 5

Integrated cost leadership/differentiation strategy

Answer 5

engaging in primary value-chain activities and support functions that allow a firm to simultaneously pursue low cost and differentiation

Question 6

Market segmentation

Answer 6

a process used to cluster people with similar needs into individual and identifiable groups

Question 7

Total quality management (TQM)

Answer 7

a managerial process that emphasizes an organization’s commitment to the customer and to continuous improvement of all processes through problem-solving approaches based on empowerment of employees