Chapter 5

Question 1

strategy designed for a firm or a division of a firm that competes within a single business

Answer 1

business-level strategy

Question 2

basic types of business level strategies based on breadth of target market industrywide versus narrow market segments

Answer 2

generic strategies

Question 3

firm’s generic strategy based on creating differences in the firm’s product or service offering by creating something that is perceived as unique and valued by customers

Answer 3

differentiation strategy

Question 4

a firm’s generic strategy based on appeal to a narrow market segment within an industry

Answer 4

focus strategy

Question 5

firm’s integration of various strategies to provide multiple types of value to customers

Answer 5

combination strategies

Question 6

firm’s ability to manufacture unique products in small quantities at low cost

Answer 6

mass customization

Question 7

the stages of introduction, growth, maturity, and decline that typically occur over the life of an industry

Answer 7

industry life cycle

Question 8

strategy of wringing as much profit as possible out of a business in the short to medium term by reducing costs

Answer 8

harvesting strategy

Question 9

firm’s acquiring or merging with other firms in an industry in order to enhance market power and gain valuable assets

Answer 9

consolidation strategy

Question 10

strategy that reverses a firm’s decline in performance and returns it to growth and profitability

Answer 10

turnaround strategy