Question
Can you please confirm the answers on these true and false questions.. McDonalds restaurant is a good example of adopting differentiation strategy as opposed to
Can you please confirm the answers on these true and false questions..
McDonalds restaurant is a good example of adopting differentiation strategy as opposed to the cost leadership. FALSE
Market size and projected growth rate, industry profitability, and the intensity of competition are considered in evaluating the attractiveness of a diversified company's business makeup. For a diversified company to be a strong performer its principal business must be in industries with a good outlook for growth and above-average profitability. TRUE
A late-mover advantage is when opportunities exist to invent a new industry or distinctive market segment that creates altogether new demand. False
Vertical integration strategies offer good potential to expand a company's lineup of products and services. False
Acquisition of an existing business is an attractive strategy option for entering a promising new industry because it is an effective way to hurdle entry barriers, is usually quicker than trying to launch a brand-new start-up operation, and allows the acquirer to move directly to the task of building a strong position in the target industry A. is an effective way to hurdle entry barriers, is usually quicker than trying to launch a brand-new startup operation, and allows the acquirer to move directly to the task of building a strong position in the target industry. TRUE
Using a cost-based advantage to attack competitors on the basis of price or value is one of the principal offensive strategy options The principal offensive strategy options include which of the following? A. Using a cost-based advantage to attack competitors on the basis of price or value TRUE
Broad differentiation strategies are well-suited for market circumstances where there are many ways to differentiate the product or service and many buyers perceive these differences as having value. Broad differentiation strategies are well-suited for market circumstances where A. There are many ways to differentiate the product or service and many buyers perceive these differences as having value TRUE
The big risk of employing an outsourcing strategy is hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.29. B. hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success. TRUE
How well a new strategy fits the companys external conditions such as the continuous Democratic administration is rarely useful in assessing the effectiveness of the strategy. FALSE
The essence of a broad differentiation strategy is to appeal to the high end part of the market and concentrate on providing a top-of-the-line product to consumers. E. be unique in ways that are valuable and appealing to a wide range of buyers. FALSe
Lexus is considered to pursue the best cost provider strategy, offering lower cost than its target rival products like BMW or Mercedes Benz and yet providing new innovations and high quality True
The attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value involves determining whether conditions in the target industry are sufficiently attractive to permit earning consistently good profits and returns on investment. The attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value involves determining whether conditions in the target industry are sufficiently attractive to permit earning consistently good profits and returns on investment. TRUE
The range of product and service segments that the firm serves within its market is known as the firm's horizontal scope. TRUE
Outsourcing strategies involve farming out value chain activities presently performed in-house to outside specialists and strategic allies. TRUE
Costcos cost leadership strategy is reflected even in their financial statement, showing very narrow/small profit margin (less than 2% of net income/total revenue). False
A blue ocean strategy is an offensive attack used by a market leader to steal customers away from unsuspecting smaller rivals. FALSE
The nine-cell industry attractiveness-competitive strength matrix is useful for helping decide which businesses should have high, average, and low priorities in allocating corporate resources True
One of the appeals of related diversification is to offer opportunities for transferring expertise, technology, and other capabilities from one business to another. FALSE
A market share dominator strategy is one of the five generic types of competitive strategy. False
Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as vulnerability to seasonal and cyclical downturns, vulnerability to driving forces, and vulnerability to fluctuating interest rates and exchange rates. False
Mergers and acquisitions are often driven by such strategic objectives as to reduce the number of strategic groups in the industry. True
Easy-to-copy differentiating features cannot produce sustainable competitive advantage. True
Diversification ought to be considered when a company's profits are being squeezed and it needs to increase its net profit margins and return on investment. False
The best strategic alliances are highly selective, focusing on particular value chain activities and on obtaining a particular competitive benefit. TRUE
Absent of Steve Jobs, Apple Inc. must change their strategic focus to low cost provider from the differentiation strategy, and such shift should not be hard considering the tight control their leadership has over their employees and other organizational structure. False
Assessments of the long-term attractiveness of each industry represented in a diversified company's lineup of businesses should be based on a complete value-chain analysis of each industry. FALSE
A key issue in companies pursuing an unrelated diversification strategy is how wide a net to cast in building a portfolio of unrelated businesses. True
Netflix continues record sales and membership increase lately and that is an indication that their strategy is working. True
A low-cost leader's basis for competitive advantage is meaningfully lower overall costs than competitors. True
Change of populace life-style is one of the most critical environmental segments to closely analyze for Panera Bread. Vertical integration strategies offer good potential to expand a company's lineup of products and services. False
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