Chapter 5
Student: ___________________________________________________________________________
1. | The case of Cott beverages explains how this company
A. | employed a poor strategy. |
B. | failed to secure a long-term agreement with RC Cola. |
C. | faced high marketing and distribution costs by adopting the retailer's brand. |
D. | built success from selling private label products to Loblaw. |
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2. | The primary aim of strategic management at the business level is
A. | maximizing risk-return trade offs through diversification. |
B. | achieving a low cost position. |
C. | maximizing differentiation of products and/or services. |
D. | achieving competitive advantage(s). |
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3. | Generic strategies include all except
B. | resources exploitation. |
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4. | Convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers characterize which type of competitive strategy?
A. | overall cost leadership |
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5. | Which of the following is a risk (or pitfall) of cost leadership?
A. | the strategy is too easily imitated |
B. | attempts to stay ahead of the competition may lead to gold plating |
C. | cost differences increase as the market matures |
D. | producers are more able to withstand increases in suppliers' cost |
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6. | A manufacturing business pursuing cost leadership will likely
A. | focus on a narrow market segment. |
B. | rely on experience effects to raise efficiency. |
C. | use advertising to build brand image. |
D. | put heavy emphasis on product engineering. |
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7. | Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize what generic strategy?
B. | overall cost leadership |
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8. | Which of the following are good examples of firms that follows the strategy of differentiation on the basis of prestige or brand image?
A. | North Face and Marantz |
B. | 3M and Cirque du Soleil |
C. | Lexus and President's Choice |
D. | BMW, Roots, and Holt Renfrew |
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