Test Bank Strategic Management

Chapter 05_The Five Generic Competitive Strategies

Student: ___________________________________________________________________________

1.

There are several basic approaches to competing successfully and gaining a competitive advantage over

rivals, such as:

A. finding effective and efficient ways to strengthen the company's competitive assets and to reduce its

competitive liabilities.

B. delivering more value to its customers than rivals or delivering value more efficiently than rivals (or

both).

C. getting in the best strategic group and establishing a dominating role.

Dentering into strategic alliances, utilizing mergers or acquisitions to strengthen its market position,

. outsourcing some in-house activities to outside specialists, and integrating forward or backward.

E. All of these.

2.

A company's competitive strategy deals with:

A specifics of management's game plan for competing successfully—its specific efforts to please

the

. customers, strengthen its market position, counter the maneuvers of rivals, respond to shifting market

conditions, and achieve a particular kind of competitive advantage.

B what its strategy will be in such functional areas as R&D, production, sales and marketing, distribution,

. finance and accounting, and so on.

C. its efforts to change its position on the industry's strategic group map.

Dits plans for entering into strategic alliances, utilizing mergers or acquisitions to strengthen its market

. position, outsourcing some in-house activities to outside specialists, and integrating forward or

backward.

E. its plans for overcoming the five competitive forces.

3.

While there are many routes to competitive advantage, the two biggest factors that distinguish one

competitive strategy from another involves:

A. whether a company can build a brand name and an image that buyers trust.

B whether a company's target market is broad or narrow and whether the company is pursuing a

. competitive advantage...