When the costs of supplies increase in an industry the low cost leader Mcq?
|
{"ad_unit_id":"App_Resource_Sidebar_Upper","resource":{"id":7299001,"author_id":3301604,"title":"Chapter 4 - Cost Leadership","created_at":"2016-12-28T16:48:03Z","updated_at":"2017-01-01T00:31:56Z","sample":false,"description":null,"alerts_enabled":true,"cached_tag_list":"","deleted_at":null,"hidden":false,"average_rating":null,"demote":false,"private":false,"copyable":true,"score":52,"artificial_base_score":0,"recalculate_score":false,"profane":false,"hide_summary":false,"tag_list":[],"admin_tag_list":[],"study_aid_type":"Quiz","show_path":"/quizzes/7299001","folder_id":6350477,"public_author":{"id":3301604,"profile":{"name":"strategyio","about":null,"avatar_service":"gravatar","locale":"en-US","google_author_link":null,"user_type_id":4,"escaped_name":"Strategy IO","full_name":"Strategy IO","badge_classes":""}}},"width":300,"height":250,"rtype":"Quiz","rmode":"canonical","sizes":"[[[0, 0], [[300, 250]]]]","custom":[{"key":"rsubject","value":"Business/Economics"},{"key":"env","value":"production"},{"key":"rtype","value":"Quiz"},{"key":"rmode","value":"canonical"},{"key":"sequence","value":1},{"key":"uauth","value":"f"},{"key":"uadmin","value":"f"},{"key":"ulang","value":"en"},{"key":"ucurrency","value":"usd"}]} Show {"ad_unit_id":"App_Resource_Sidebar_Lower","resource":{"id":7299001,"author_id":3301604,"title":"Chapter 4 - Cost Leadership","created_at":"2016-12-28T16:48:03Z","updated_at":"2017-01-01T00:31:56Z","sample":false,"description":null,"alerts_enabled":true,"cached_tag_list":"","deleted_at":null,"hidden":false,"average_rating":null,"demote":false,"private":false,"copyable":true,"score":52,"artificial_base_score":0,"recalculate_score":false,"profane":false,"hide_summary":false,"tag_list":[],"admin_tag_list":[],"study_aid_type":"Quiz","show_path":"/quizzes/7299001","folder_id":6350477,"public_author":{"id":3301604,"profile":{"name":"strategyio","about":null,"avatar_service":"gravatar","locale":"en-US","google_author_link":null,"user_type_id":4,"escaped_name":"Strategy IO","full_name":"Strategy IO","badge_classes":""}}},"width":300,"height":250,"rtype":"Quiz","rmode":"canonical","sizes":"[[[0, 0], [[300, 250]]]]","custom":[{"key":"rsubject","value":"Business/Economics"},{"key":"env","value":"production"},{"key":"rtype","value":"Quiz"},{"key":"rmode","value":"canonical"},{"key":"sequence","value":1},{"key":"uauth","value":"f"},{"key":"uadmin","value":"f"},{"key":"ulang","value":"en"},{"key":"ucurrency","value":"usd"}]} The strategic management process requires the making of only a single decision about the overall strategy of a firm. 2. The I/O (Industrial Organization) model argues that core competencies are the basis of a firm's competitive advantage. 3. Firms can easily control the elements of the six segments of the general environment. 4. Firms are affected only by the governmental regulations of the country in which they are headquartered. 5. Firms can earn above-average returns even if they do not develop or sustain a competitive advantage. 6. Creating customer value is the source of the firm's potential to earn above-average returns. 7. A business-level strategy reflects a firm's beliefs about what products and services it should be offering to customers. 8. Firms implementing cost leadership strategies often sell no-frills standardized goods or services to the industry's most typical customers. 9. Intensified rivalry within an industry results in decreased average profitability for the firms within it. 10. Ability refers to an attacking or responding firm's knowledge of the competitive market characteristics. Identify the letter of the choice that best completes the statement or answers the question. 11. A method of reducing competitive rivalry may be to reduce the firm's market commonality with other firms by doing all EXCEPT which of the following? competing in a different geographic market competing in a different product segment competing in a different market segment competing in a different labor market 12. Both __________ and __________ affect the awareness and motivation of a firm to undertake actions and responses. first-mover advantages, corporate size market commonality, resource similarity management capabilities, competitive analysis speed of management decisions, management actions 13. The chief disadvantage of being a first mover is the: high level of competition in the new marketplace. inability to earn above-average returns unless the production process is very efficient. difficulty of obtaining new customers. 14. When the costs of supplies increase in an industry, the low-cost leader may: continue competing with rivals on the basis of product features. lose customers as a result of price increases. make it difficult for new entrants to the industry to achieve above-average returns. be the only firm able to pay the higher prices and continue to earn average or above- average returns. 15. The risks of a cost leadership strategy include all of the following EXCEPT: investments in manufacturing equipment can become obsolete due to innovation. firms may fail to understand customers' perceptions of competitive levels of differentiation. competitors may learn how to successfully imitate their strategy. firms may fail to include enough unique features in the product. 16. Which of the following is NOT a value-creating activity associated with the differentiation strategy? intensive training programs to improve employee effectiveness and efficiency strong capability in basic research. rapid and timely deliveries to customers. procurement systems focused on finding the highest quality raw materials. 17. A differentiation strategy can be effective in controlling the power of substitutes in an industry because: customers have low switching costs. substitute products are from a different industry. customers want the low cost product. customers develop brand loyalty. 18. The integrated cost leadership/differentiation strategy: is one of the most common successful business strategies. has been shown by research to be consistently correlated with above-average returns. is more risky to implement than the cost-leadership or differentiation business strategies. is a more stable business strategy once the firm is established in a leadership position. 19. The advent of inexpensive digital cameras able to compete with film cameras may be an example of __________. When the costs of suppliers increase in an industry the lowTerms in this set (20) When the costs of supplies increase in an industry, the cost leader: may continue competing with rivals on the basis of product features.
What is a lowA pricing strategy in which a company offers a relatively low price to stimulate demand and gain market share.
What is cost leadership lowA cost leadership strategy hinges on a company's ability to lower costs of production to offer quality products at low prices. It's an effective strategy for large companies with lots of buying power, but it's less effective for small businesses.
What is lowThe obvious example of a low-cost leadership business is Walmart, which uses a top of the line supply chain management information system to keep their costs low and, consequently, their prices low. Walmart's system also keeps shelves stocked almost constantly, translating into high profits.
|
