MBA - Strategic Management - Homework Short answer question 1. Indicate two advantages of focus strategy 2 . For each of the generic strategies - cost leadership, differentiation, and focus - describe one advantage and one disadvantage. Multiple Choice 1. Business-level strategy involves decisions pertaining to all of the following except alcustomer needs b) market segmentation c)distinct competencies d) diversification 2. Which of the following is not a component of national environment? a) Political and legal forces b) Demographic forces c) Sociocultural forces d)competitive forces 3. Exit barriers are factors that alregulate the industry in which a company operates. b) make it costly for companies to leave an industry. c) make it costly for companies to move from one product to another. d) create uncertainty in the external environment. 4. Porter defines substitute products are those that a) look similar and are a similar price to the original. b) look similar to the original. c) fulfill a similar function to the original product. d) are the same price as the original. e) are an alternative from the brand name. 5. Demand reaches total saturation in the _ stage of the industry life cycle. algrowth b)decline c)embryonic d)mature 6. Competitive advantage is when a company a) is able to outperform its rivals. b) has a higher share price than its rivals. c) is able to do something that no other company can do. d) is in a position to takeover another company. 7. Efficiency is a) defined as the time it takes to produce a product. b) pursued only by cost leaders. c) defined as the cost of inputs required to produce a given output. d) defined as the time and cost of inputs required to produce a product. 8. The concept of the experience curve suggests that a) learning effects persist over long time periods. b) costs decline by some characteristic amount each time accumulated output is doubled. c) manufacturing costs decline by the same amount each time a company doubles its output. d) higher volumes of output always give rise to greater plant-level economies of scale. 9. Which of the following functions is responsible for developing process innovations to increase efficiency? aTop management b)material management c)research and development d) marketing