Question : Objective 12.1 1) Which of the following statements best define strategy? : 1211782

Objective 12.1

1) Which of the following statements best define strategy?

A) It describes how an organization can create value for its customers while differentiating itself from

its competitors.

B) It is an organization’s ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

C) It is an organization’s ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors.

D) It describes how an organization motivates its employees to work for more hours without any increase in their wages.

2) In general, profit potential of an organization decreases with ________.

A) lesser competition and stronger potential entrants

B) greater competition and stronger potential entrants

C) lesser competition and weaker potential entrants

D) greater competition and weaker potential entrants

3) Which of the following statements best define a product differentiation strategy?

A) It describes how an organization can increase customer base by differentiating its’ product prices from its competitors.

B) It is an organization’s ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

C) It describes how an organization can decrease product prices by differentiating its’ raw materials from its competitors.

D) It is an organization’s ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors.

4) While doing industry analysis on five forces, which of the following is a force that shapes an organization’s profit potential?

A) previous year profit figures

B) current year profit figures

C) bargaining power of suppliers

D) research and development

5) ________ is an organization’s ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors.

A) Strategy

B) Product differentiation

C) Cost leadership

D) The balanced scorecard

6) ________ refers to an organization’s ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

A) Marketing strategy

B) Product differentiation

C) Cost leadership

D) Competitor differentiation

7) An organization that is using the product differentiation approach would ________.

A) focus on tight cost control

B) use innovative research and development

C) provide products that are similar to competitors

D) offer products at a lower cost than competitors

8) An organization that is using the cost leadership approach would ________.

A) incur costs for innovative R&D

B) provide products at a higher cost than competitors

C) focus on productivity through efficiency improvements

D) bring products to market rapidly

9) Stewart Corporation plans to grow by offering a sound system, the SS3000, that is superior and unique from the competition. Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy.  Stewart’s strategy is ________.

A) product differentiation

B) downsizing

C) product leadership

D) cost leadership

10) Terbium Corporation manufactures water toys. It plans to grow by producing high-quality water toys that are delivered in a timely manner. There are a number of other manufacturers who produce similar water toys. Terbium believes that continuously improving its manufacturing processes and reengineering processes to downsize and eliminate excess capacity are critical to implementing its strategy.  Out of the two basic strategies, Terbium’s strategy is ________. 

A) product differentiation

B) product leadership 

C) cost differentiation

D) cost leadership