Business Strategy
Name_________________________________
Northeastern University
MGT 4750 Winter2011
Test 2
A. Multiple choice (Each correct answer is worth 2 points.) First read what the question is asking . . .then mark the single best answer for each.
1. While there are many routes to sustainable competitive advantage, they all involve A) building a brand name image that buyers trust. B) delivering superior value to buyers and building competencies and resource strengths in performing value chain activities that rivals cannot readily match. C) achieving lower costs than rivals and becoming the industry’s sales and market share leader. D) finding effective and efficient ways to strengthen the company’s competitive assets and to reduce its competitive liabilities. E) getting in the best strategic group and dominating it.
2. Corporate strategy options for diversified companies include A) broadening the company’s business scope by making new acquisitions in new industries. B) divesting weak-performing businesses and retrenching to a narrower base of business operations. C) restructuring the company’s business lineup with a combination of divestitures and new acquisitions to put a whole new face on the company’s business makeup. D) pursuing growth opportunities within the existing business lineup. E) All of these.
3. The biggest and most important differences among the competitive strategies of different companies boil down to A) how they go about building a brand name image that buyers trust and whether they are a risk-taker or risk-avoider. B) the different ways that companies try to cope with the five competitive forces. C) whether a company’s market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation. D) the kinds of actions companies
Northeastern University
MGT 4750 Winter2011
Test 2
A. Multiple choice (Each correct answer is worth 2 points.) First read what the question is asking . . .then mark the single best answer for each.
1. While there are many routes to sustainable competitive advantage, they all involve A) building a brand name image that buyers trust. B) delivering superior value to buyers and building competencies and resource strengths in performing value chain activities that rivals cannot readily match. C) achieving lower costs than rivals and becoming the industry’s sales and market share leader. D) finding effective and efficient ways to strengthen the company’s competitive assets and to reduce its competitive liabilities. E) getting in the best strategic group and dominating it.
2. Corporate strategy options for diversified companies include A) broadening the company’s business scope by making new acquisitions in new industries. B) divesting weak-performing businesses and retrenching to a narrower base of business operations. C) restructuring the company’s business lineup with a combination of divestitures and new acquisitions to put a whole new face on the company’s business makeup. D) pursuing growth opportunities within the existing business lineup. E) All of these.
3. The biggest and most important differences among the competitive strategies of different companies boil down to A) how they go about building a brand name image that buyers trust and whether they are a risk-taker or risk-avoider. B) the different ways that companies try to cope with the five competitive forces. C) whether a company’s market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation. D) the kinds of actions companies