Pages: 117-136, additional material we discussed in the class and power point handout material
Chapter 6: Corporate Level Strategy
Pages: 155-171; 174-187, additional material we discussed in the class and power point handout material
Study Guide 5th Edition
Chapter 5: Business Level Strategy
Pages: 157-175, additional material we discussed in the class and power point handout material
Chapter 6: Corporate Level Strategy
Pages: 195-211; 215-227, additional material we discussed in the class and power point handout material
Study Guide (4th Edition)
Chapter 5: Business Level Strategy
Pages: 155-171, additional material we discussed in the class and power point handout material
Chapter 6: Corporate Level Strategy
Pages: 191-206; 210-223, additional material we discussed in the class and power point handout material
The Apple Case, class discussions, handouts, and articles/readings we have about these three chapters.
2. Review
Please note that exam questions will be multiple-choice questions. These true/false questions are here only for review purposes.
F Business-level strategy focuses on two issues, (1) what businesses to compete in, and (2) how businesses can be managed to achieve synergy.
F A firm striving for cost leadership will typically spend relatively more on product related R&D than on process related R&D.
F A successful differentiation strategy lowers entry barriers because of customer loyalty and the firm's ability to provide uniqueness in its products and services.
T An important pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become “stuck-in-the-middle.”
T Sharing activities across business units can provide two primary benefits: cost savings and revenue enhancements.
F A publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification.
T One of the risks of vertical integration is that there may be problems associated with unbalanced capacities or unfilled demands along a firm's value chain.
T According to the text, the two main sources of synergy in unrelated diversification are parenting and restructuring.
F Business-level strategy focuses on two issues, (1) what businesses to compete in, and (2) how businesses can be managed to achieve synergy.
F To generate above average returns, a firm following an overall cost leadership position should not be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.
T Firms that compete on overall cost are vulnerable if all rivals share a common input or raw material that contributes a significant amount to total costs.
T The example of Lexus automobiles in the text points out that a firm can strengthen its differentiation strategy by achieving integration at multiple points along the value chain.
F A successful differentiation strategy increases rivalry since buyers become more price-sensitive.
F If a firm has a successful differentiation strategy, it is not necessary to attain parity on cost.
T One pitfall of a differentiation strategy is that a brand's identification in the marketplace may become diluted through excessive product line extensions.
F In an undifferentiated product market where companies compete solely on the basis of cost, the second most cost efficient producer has little difficulty competing with the most efficient manufacturer.
T Creating a niche by differentiating one's product or service often allows small firms to compete successfully with market leaders.
F Focus, by itself, often constitutes a competitive advantage.
T A pitfall of a focus strategy is that focusers can become too focused to satisfy buyer needs.
F A disadvantage of firms that successfully integrate overall cost leadership and differentiation
