1. A firm can achieve differentiation through all of the following means EXCEPT .....

• A. Improving brand image .
• B. Bettercustomerservice.
• C. Adding additional product features .
• D. Improving product quality .
• E. Reduce of eliminate the threat of substitution .

2.According to Porter , if a company does not achieve one of the generic competitive strategies ( i.e. ,cost leadership , differentiation , focus ) , it is ............ with no competitive advantage and is doomed to below - average performance.

• A. achieving synergy .
• B. practicing innovative leadership.
• C. Stuck in the middle .
• D. Not goal directed .
• E. Last in line .

3.Which of the following is an advantage for first mover firms :

• A. They are able to obtain higher profits and other benefits as the consequence early market entry .
• B. They expand more rapidly in international markets than late movers in international markets .
• C. Competing multinational firms enter an important market when a market is growing very fast.
• D. They have greater strategic incentives for investing in technical innovation late movers.
• E. All the above .

4.Behavior substitution occurs when :

• A. A division or functional unit views itself as a separate entity and cooperate with other divisions or units in order to keep its perform a high level .
• B. Individuals are placed into positions not suited to their abilities .
• C. Individuals substitute activities that do not lead to goal accoml Being rewarded .
• D. Managers concentrate too much on short-term performance .

5.The orientation of the functional strategy is dictated by its parent business strategy .

• True
• False